As reported in an article featured in the Baltimore Business Journal, Sol Systems has worked closely with the rest of the regional solar community to successfully pass historic Renewable Portfolio Standard (RPS) legislation in the state of Maryland. Senate Bill 277 (SB 277) has two significant impacts on the state’s goals for renewable energy. Most importantly, the bill ensures a vibrant Solar Renewable Energy Credit (SREC) market in Maryland, which will greatly expand the opportunities and incentives for solar energy investment.
SB 277 accelerates the required amount of solar energy electricity suppliers must purchase to comply with the state’s Renewable Portfolio Standard. This accelerated solar-carve out in Maryland requires a rapid growth in solar energy within the state of Maryland in the next five years. By 2012, in-state solar energy must grow by approximately 450% of current capacity levels in order to meet the new targets set in SB 277.
Additionally, SB 277 ensures that the alternative compliance payment (ACP), a fee that energy suppliers must pay for non-compliance with the solar RPS, will not be reduced over the next four years. This change is equally important for the continued success of the solar RPS since it acts as a ceiling on the price of solar renewable energy credits SRECs. In Maryland, SRECs are often the cornerstone for financing solar energy projects. By maintaining the ACP, the state has ensured that SREC prices are not artificially depressed (as under the previous ACP configuration) and prices can now move with the market as supply and demand shift or fluctuate.
Sol Systems is proud to have participated in petitioning the state to move forcefully towards a clean energy future. Sol Systems also worked with other businesses, including Skyline Innovations, to broaden the solar energy carve-out in Maryland to permit solar thermal energy to qualify. We believe that if solar thermal energy is displacing electricity produced by coal, natural gas and oil, then these systems’ clean energy attributes have the right to be monetized through SREC production.
Sol Systems will continue to push for common sense solar solutions for citizens of Maryland and across the country. It is part of our mission to make solar energy simple and affordable for all.