Maryland Mid-Size Commercial Solar Gets Extra Funding Boost

Last Friday, the Maryland Energy Administration (MEA) updated an incentive program for mid-sized solar energy systems on commercial buildings throughout the state.

The $1.45 million program will allow Maryland businesses to qualify for a rebate worth $2.00 per photovoltaic (PV) watt for systems between 20 and 100 KW, up to $50,000. Additionally, businesses can receive a 15 percent rebate on solar hot water systems, up to $25,000. The goal is to make solar energy more affordable and, in turn, a more common feature of Maryland’s commercial buildings.

The funding, made possible by the American Recovery and Reinvestment Act, is expected to last through fiscal year 2011. It is an update to the original Mid-Size Solar Energy Grant Program that Maryland undertook in November 2009.

The newly announced funding capped off an eventful week for Maryland solar. On March 22, the state lost 320 renewable energy jobs due to layoffs by a solar panel manufacturing plant in Frederick, MD. Two days later, the Maryland Department of General Services (DGS) announced that they would install solar energy systems on five of the agency’s buildings.

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Jason Said,

March 30th, 2010 @5:08 am

As a MD resident, this is just what this state needs! Encouraging businesses to invest in renewable energy is usually a tough sell. With tax incentives now in place, solar should now be more common in our commercial buildings. Coupled with the increasing popularity of LEED programs, MD could see a large upswing in solar technology use.

How do we encourage homeowners to invest in solar technology aside from tax incentives? What about solar lighting as a method of energy efficiency?

solarenergyworld Said,

March 31st, 2010 @9:59 pm

Jason, that’s a great question.

Maryland homeowners are incentivized in many ways – 1.) federal, state and local tax credits or grants and 2.) savings (from offsets) and earnings (from cashing in solar renewable energy credits – SRECs)

Maryland currently has a Solar Renewable Portfolio Standard (RPS) which requires a specific percentage of electricity sold come from solar energy. The utility companies are fined if they fail to meet the solar component of Maryland’s RPS. So, to avoid the fine, they purchase SCRECs from homeowners and building owners.

Right now, SRECs are valued at $390 per credit. One Solar Renewable Energy Credit represents the monetary value associated with 1,000 kilowatt-hours of clean generated solar power.

So, if you install a 6kw system – it will generate 7 or more SREC’s. And the value of that (right now) is $2730 per year. Between the savings and the earnings from this example system size has a return of about 4 1/2 years. If residential customers could get solar for free how soon would they install solar? If they use financing as a vehicle to make solar happen, most will have monthly payments that are less than what the solar system is producing thus making the solar system owner cash flow positive!