LAWRENCE J. HOGAN, JR., Governor Ch. 581
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Chapter 581
(House Bill 440)
AN ACT concerning
Electricity – Community Solar Energy Generating Systems – Net Energy
Metering and Generating Capacity
FOR the purpose of altering the maximum generating capacity of a community solar energy
generating system for purposes of net energy metering; altering the maximum
generating capacity of a community solar energy generating system; specifying that
a community solar energy generating system is not a generating station if the
generating capacity of the community solar energy generating system does not
exceed a certain wattage; and generally relating to community solar energy
generating systems.
BY repealing and reenacting, without amendments,
Article – Public Utilities
Section 7–306(a)(1), (4), and (7) and 7–306.2(a)(1)
Annotated Code of Maryland
(2020 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Public Utilities
Section 7–306(g) and 7–306.2(a)(3) and (c)
Annotated Code of Maryland
(2020 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Utilities
7–306.
(a) (1) In this section the following words have the meanings indicated.
(4) “Eligible customer–generator” means a customer that owns and
operates, leases and operates, or contracts with a third party that owns and operates a
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro
electric generating facility that:
(i) is located on the customer’s premises or contiguous property;
(ii) is interconnected and operated in parallel with an electric
company’s transmission and distribution facilities; and Ch. 581 2022 LAWS OF MARYLAND
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(iii) is intended primarily to offset all or part of the customer’s own
electricity requirements.
(7) “Net energy metering” means measurement of the difference between
the electricity that is supplied by an electric company and the electricity that is generated
by an eligible customer–generator and fed back to the electric grid over the eligible
customer–generator’s billing period.
(g) (1) Except as provided in [paragraph] PARAGRAPHS (6) AND (7) of this
subsection, the generating capacity of an electric generating system used by an eligible
customer–generator for net metering may not exceed 2 megawatts.
(2) An electric generating system used by an eligible customer–generator
for net metering shall meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and Electronics Engineers, and
Underwriters Laboratories.
(3) The Commission may adopt by regulation additional control and testing
requirements for eligible customer–generators that the Commission determines are
necessary to protect public safety and system reliability.
(4) An electric company may not require an eligible customer–generator
whose electric generating system meets the standards of paragraphs (2) and (3) of this
subsection to:
(i) install additional controls;
(ii) perform or pay for additional tests; or
(iii) purchase additional liability insurance.
(5) An eligible customer–generator or the eligible customer–generator’s
assignee shall own and have title to all renewable energy attributes or renewable energy
credits associated with any electricity produced by its electric generating system.
(6) The Commission may not prohibit the construction or operation of
multiple net metered solar energy generating facilities located on separate contiguous lots
that are owned by a local government solely because the capacity of the combined net
metering systems exceeds the limit established under paragraph (1) of this subsection, if:
(i) the net metered solar energy generating facilities are intended to
be used solely for the benefit of the local government;
(ii) the total capacity of the net metered solar energy generating
facilities on the contiguous lots does not exceed 5 megawatts; LAWRENCE J. HOGAN, JR., Governor Ch. 581
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(iii) the contiguous lots were not subdivided for the purpose of
circumventing the limit established under paragraph (1) of this subsection; and
(iv) the utility serving the net metered solar energy generating
facilities is not an electric cooperative or municipal electric utility.
(7) THE GENERATING CAPACI TY OF A COMMUNITY SO LAR ENERGY
GENERATING SYSTEM ES TABLISHED UNDER § 7–306.2 OF THIS SUBTITLE THAT I S
USED FOR NET METERIN G MAY NOT EXCEED 5 MEGAWATTS .
7–306.2.
(a) (1) In this section the following words have the meanings indicated.
(3) “Community solar energy generating system” means a solar energy
system that:
(i) is connected to the electric distribution grid serving the State;
(ii) is located in the same electric service territory as its subscribers;
(iii) is attached to the electric meter of a subscriber or is a separate
facility with its own electric meter;
(iv) credits its generated electricity, or the value of its generated
electricity, to the bills of the subscribers to that system through virtual net energy
metering;
(v) has at least two subscribers but no limit to the maximum number
of subscribers;
(vi) does not have subscriptions larger than 200 kilowatts
constituting more than 60% of its subscriptions;
(vii) has a generating capacity that does not exceed [2] 5 megawatts
as measured by the alternating current rating of the system’s inverter; and
(viii) may be owned by any person.
(c) A community solar energy generating system, including a subscriber or
subscriber organization associated with the community solar energy generating system, is
not:
(1) an electric company;
Ch. 581 2022 LAWS OF MARYLAND
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(2) an electricity supplier; or
(3) a generating station IF THE GENERATING CA PACITY OF THE
COMMUNITY SOLAR ENER GY GENERATING SYSTEM DOES NOT EXCEED 2
MEGAWATTS .
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.