Investing in solar panels got sweeter for Maryland Residents thanks to the implementation of certified Solar Renewable Energy Credits (SRECs).
On May 9, 2024, Maryland Governor Wes Moore signed Senate Bill 783, also known as the Brighter Tomorrow Act, into law. This legislation is set to boost the solar industry in Maryland and increase the value of solar energy for consumers across the state.
The Brighter Tomorrow Act aims to help Maryland meet its ambitious clean energy goals. The state has set a target to deploy solar energy equal to 14.5% of Maryland's electric demand by 2030. However, progress has been slower than expected, with only 55% of the 2022 target met. This new law introduces several measures to accelerate solar adoption, including the creation of Certified SRECs.
Let's dive into one of the key aspects of this bill: Maryland Certified Solar Renewable Energy Credits (SRECs) and why they matter to you.
What Are SRECs?
Before we dive into the changes that are coming with Certified SRECs, let's start by explaining what an SREC is.
- SRECs stands for Solar Renewable Energy Credit
- You get one SREC for every 1,000 kilowatt-hours of solar energy your system produces
- SRECs are separate from your electric bill savings
- You can sell SRECs to make extra money from your solar panels
What Are Maryland Certified SRECs?
Starting July 1, 2024, Maryland residents can qualify for "Certified SRECs." Here's what that means in simple terms:
- A Certified SREC is worth 1.5 of the regular value of a standard SREC
- This means the value of your SRECs would go up by 50%!
Let's look at an example of how this would change your SREC income:
- Say your system produces 10 SRECs per year (roughly a 10 kW solar system)
- If each SREC were worth $40 before, you'd now make $60 per credit. This increases your income from $400 a year to $600.
Who Qualifies For Certified SRECs?
First and foremost, certified SRECs are only available for solar panel systems installed in Maryland, but not all MD systems will qualify.
The solar system must be installed after July 1, 2024, and before January 1, 2028. In addition, your system must meet one of the following qualifying criteria:
- Any system 20 kW AC or smaller
- Systems up to 2 megawatts AC or less that use aggregate net metering (usually used at farms)
- Roof-mounted, carport, or brownfield systems up to 5 megawatts AC
For the most part, the only Maryland solar installations that won’t qualify are ground-mounted systems larger than 20 kW AC that don’t use aggregate net metering.
How to Register For Maryland Certified SRECs?
The process for registering for certified SRECs is very similar to the process for standard SRECs. It's not an overly complex process, but it's critical to do it right to avoid missing out. Here are some tips:
- Work with your solar installer or an SREC broker
- They can help you with the paperwork and selling process
- Don't try to do it all on your own – it's worth getting help to make sure you qualify
Note: Paradise Energy is here to handle all the details for you. We have extensive experience managing a significant portion of our customers' SRECs, ensuring a seamless process for you.
Want to Learn More?
If you're curious about Maryland Certified Solar Renewable Energy Credits or solar energy in general, our local team is ready to help. They can explain how this change might affect you and help you make the most of your solar investment.
In addition, you can visit our Maryland Solar Guide to learn more about investing in solar energy in Maryland, including the ROI/Payback, available incentives, and answers to many commonly asked questions.
