On November 6, the Maryland Energy Administration (MEA) began offering grants worth up to $25,000 to companies and non-profits that install mid-sized solar photovoltaic (PV) and solar hot water systems. Made possible by $1.45 million in federal funding from American Recovery and Reinvestment Act (ARRA), the new grants are available through October 31, 2010, or when the cash runs out — whichever comes first. If past experience is a reliable guide, chances are the $1.45 million funds will be gone long before Halloween of next year.

What follows is a quick rundown of what’s available. You can learn more about the Mid-Size Solar Grant Program by visiting the MEA website.

• Solar PV systems must be at least 20 kilowatts (kWs) in size and no larger than 100 kW. Qualifying systems will receive funds according the following schedule: $500 per kW of installed capacity for the first 20 kW; $250/kW for the next 30 kW; and $150/kW for the next 50 kW. Maximum grant value is capped at $25,000.
• Solar hot water systems are eligible for funds worth up to 15 percent of installed system costs, capped at $25,000.

It’s worth noting that, because the grants are made possible by federal money, there are a few strings attached — i.e., the solar installations must be meet ARRA compliance and reporting requirements. Perhaps most significant is the requirement that all installations be consistent with the prevailing wage requirement, which is outlined by the Davis-Bacon Act. While no one likes more hoops to jump through — particularly those emanating from Washington — the requirements are fairly straightforward. Luckily enough, the MEA has amassed a list of FAQs on ARRA project guidelines.

The MEA has been accepting solar project applications for a little over a month, but so far none of the grant money has been disbursed. Look for funds to start flowing in early 2010.