Maryland incentives and policy

Maryland net metering changes in 2027: what to know

Written by the Soleil Energy Corp Team Last updated Editorial guidelines

Row of suburban rooftops on a curving street, some with solar panels, in evening light.

Maryland law keeps standard net metering open until the earlier of two events: 3,000 megawatts of statewide capacity, or July 1, 2027.1 A customer who is under a net metering contract or tariff on July 1, 2027 “shall remain eligible” until a listed event.2 What counts as “under” is still being worked out at the Public Service Commission.

Can Maryland net metering close in 2027?

Yes, and possibly sooner. The 2026 Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act, Chapter 353 of the 2026 Acts, ends the existing program at the earlier of two events: statewide customer-generator capacity reaching 3,000 megawatts, or July 1, 2027.1 A full cap could come first, so July 1, 2027 is the latest end date.

“Maryland solar ends in 2027” is only half right. The standard program stops being open to new entrants on that date or sooner. Customers already under a contract or tariff stay eligible under the conditions covered further down.12

One trap: a signed installer contract is not enrollment. None of the three milestone proposals below counts it. Every milestone on the table is a utility step.3

What counts as being “under” a contract on July 1, 2027?

The Act protects a customer who is “under” a net metering contract or tariff on July 1, 2027, but the statute never says what “under” requires.12 The Public Service Commission (PSC) is writing that test in docket RM 56, where Staff put three competing versions of COMAR 20.50.10.01(D) before the Commission.34

Version What you’d need by July 1, 2027 Who backed it
1. Application An interconnection application filed with the electric company Maryland Energy Administration, Maryland Department of Transportation, Howard County, the Maryland Rooftop Solar Coalition, and several solar industry groups
2. Permission to operate The utility’s permission to operate in hand Potomac Edison, PHI and Baltimore Gas and Electric (BGE)
3. Executed agreement A signed interconnection agreement for net metering PSC Staff

The regulations define a permission to operate notice as the written permission, by email or letter, that authorizes the customer to interconnect and operate the system.5 That comes much later than filing an application, which is why the versions draw the line in very different places.3

Staff’s version adds a fallback. Someone who applied by July 1, 2027 but hadn’t signed an agreement wouldn’t get net metering under the existing program. They would take service under the successor program and get prioritized review of the application.3

Here is a hypothetical to show how far apart the versions sit. Three homeowners reach July 1, 2027 at different points in the process.

Where the homeowner stands Version 1 Version 2 Version 3
Application filed, nothing else Counts Doesn’t count Doesn’t count; successor program with priority review
Agreement signed, not yet permitted to operate Counts Doesn’t count Counts
Permission to operate received Counts Counts Counts

This table illustrates the proposals. It isn’t an eligibility ruling, and no version is final.

The PSC invited comments on the proposal through July 24, 2026, and set a rulemaking session for August 11.4 The notice describes Staff’s submission as the step before publication in the Maryland Register. The RM 56 docket index lists proposed minutes of the August 11 session, a September 15 notice of request for comments, and later filings through October 13, 2026. It lists no final order.6 The Register’s tables of pending and adopted regulations, both dated October 15, 2026, don’t show the RM 56 wording as proposed or adopted.7 Until the Commission publishes a final rule, ask the utility in writing which test it is applying to your project.

How full is the statewide cap?

The PSC’s November 2025 report counted about 1,537 megawatts of installed net-metered capacity as of June 30, 2025, or 51.23 percent of the 3,000 megawatt cap.8 The same report listed about 2,911 megawatts of community solar projects waiting in the pipeline.8

Measure Figure Data date
Statewide cap, existing program 3,000 megawatts Utility RELIEF Act, 20261
Installed net-metered capacity About 1,537 megawatts June 30, 20258
Community solar projects in the pipeline About 2,911 megawatts PSC report, November 20258
Maryland net metering capacity vs. cap (megawatts)Source: 18
View the data as a table
MeasureFigure
Statewide cap, existing program3,000 megawatts
Installed net-metered capacityAbout 1,537 megawatts
Community solar projects in the pipelineAbout 2,911 megawatts

Neither number settles the question by itself. Pipeline projects aren’t operating yet, so 1,537 plus 2,911 isn’t a measure of a full cap. And 3,000 minus 1,537 isn’t today’s headroom, because the data stops at June 30, 2025. The law requires the PSC to report to the General Assembly on the net metering program on or before November 1 each year, and the newest report is the place to look for current headroom.9

What happens if you already have solar?

An eligible customer-generator under a net metering contract or tariff on July 1, 2027 “shall remain eligible” until the earlier of four events: decommissioning, a modification that increases net power injection or AC output, a new interconnection agreement, or repowering.2 In the statute’s words:

  • The system is decommissioned.
  • The system is modified to increase the net power flow injection into the grid by adding more photovoltaic modules than it had when first placed in service, or to raise its alternating current output capacity above the original level.
  • The system enters a new interconnection agreement.
  • The system is repowered, as the law defines that term.210

The law defines “repowered” as having replaced more than 80 percent of the direct current nameplate capacity of the photovoltaic modules, through a single action or a series of actions, measured from when the system was originally placed in service.10 The measure is module capacity, not a count of panels. The definition leaves out routine repair and maintenance, roof replacement or other site maintenance, remediation of equipment defects, remediation of casualty damage, and replacements a governmental authority or the electric company requires. Those exclusions sit inside the definition of “repowered.” Decommissioning, modification and a new agreement are separate events with their own tests.210

Batteries aren’t named in the list. If you’re thinking about adding one, send the utility the spec sheet before you buy and get its answer in writing on whether it treats the change as a modification or a new interconnection agreement. Our guide to adding a battery to existing solar covers the equipment side, and Soleil’s battery storage page describes the service.

How does net metering show up on your bill?

A net metering contract uses the same energy rates, rate structure and monthly charges as the tariff you’d have without solar.11 The statute sets no single statewide cents-per-unit figure, so what a solar customer is credited follows the customer’s rate class, and customer charges still apply every month.12

Billing item How the statute treats it
Applicable rate Same energy rates, rate structure and monthly charges as the customer’s otherwise applicable contract or tariff11
Months when you export more than you use You’re billed only customer charges, and net excess generation carries forward12
Annual excess under the 12-month option Paid at the generation or commodity portion of your rate, averaged over the 12 months ending before the end of April12
Customer charges Still billed12

Settlement works differently for customers of electricity suppliers and community choice aggregators. Indefinite accrual is a second option, and customers of municipal utilities and electric cooperatives can’t use it.12 Which option applies depends on what the customer elected, and excess generation settles under those options rather than as retail-price cash for every exported kilowatt-hour.

Does community solar get a later deadline?

Yes, in a narrow case. A community solar system placed in service after July 1, 2027 can still get net metering if the cap hasn’t been met, it held a queue position and paid a deposit of at least 50 percent of the interconnection fee estimate by July 1, 2027, and it is in service by July 1, 2030.13

The deposit goes to the electric company and covers its estimate of the necessary interconnection fees. The 2030 date is subject to the statute’s extension and no-successor-program provisions, and the utility’s territory limit must not have been reached.13 The exception is written for community solar systems, not household rooftop systems. What a place in the interconnection queue does for a rooftop applicant is a separate question, and our guide to what replaces Maryland net metering takes it up.

What should you do before July 1, 2027?

Interconnection questions go to the electric utility on your bill, because the utility issues the permission to operate.5 Local permits are a separate approval. Montgomery County’s Department of Permitting Services, for example, requires a building permit for the panels and an electrical permit for the connection.14 Neither permit is a utility milestone in the RM 56 proposals.3

  1. Check your bill for your electric utility and rate class, and write both down.
  2. Get the eligibility rule the utility uses today, any final PSC order and your applicable tariff in writing. Keep the reply.
  3. Collect the dates for your application, agreement, inspection and permission to operate, and note who controls each. The Pepco interconnection guide and the BGE interconnection guide walk through those steps.
  4. Already have solar? Send the utility your planned equipment changes and see whether they trigger a new agreement.
  5. Pin down compensation terms before you compare proposals. The successor rate is undecided, so price it as a risk.
  6. Federal credits run on a separate track from net metering. Is there still a federal solar tax credit covers what applies today.

Soleil’s residential solar process runs from assessment through utility coordination, and the FAQ answers common service questions. To go over your bill and a proposed system, book a free consultation or call (301) 953-4140.

Solar savings and incentive eligibility depend on your roof, your usage, your utility, and your tax situation. Incentive programs change and some have limited funding. We are not tax advisors — we will review your bill with you and tell you what you may qualify for. Confirm any tax credit with a qualified tax professional.

Sources (14)

  1. Maryland General Assembly, Utility RELIEF Act, HB 1532 (enrolled; approved by the Governor May 12, 2026 as Chapter 353), Public Utilities Article 7-306(d)(1), https://mgaleg.maryland.gov/2026RS/bills/hb/hb1532E.pdf ; bill history page https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb1532?ys=2026RS ; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5

  2. Maryland General Assembly, HB 1532 (enrolled, approved May 12, 2026), Public Utilities Article 7-306(d)(5), https://mgaleg.maryland.gov/2026RS/bills/hb/hb1532E.pdf ; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  3. Maryland Public Service Commission, Proposed Regulations, Administrative Docket RM 56, proposed COMAR 20.50.10.01(D), June 2026, https://psc.maryland.gov/wp-content/uploads/2026/06/Proposed-Regulations-RM-56.pdf ; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5

  4. Maryland Public Service Commission, Notice of Opportunity to Comment and Rulemaking Session, Administrative Docket RM 56, June 25, 2026, https://psc.maryland.gov/wp-content/uploads/2026/06/Notice_CommentOpp-RM-Session-RM56.pdf ; read October 25, 2026. ↩ ↩2

  5. Maryland Division of State Documents, Library of Maryland Regulations, COMAR 20.50.09.02B, definition of “Permission to operate notice,” current text (undated page), https://regs.maryland.gov/us/md/exec/comar/20.50.09.02 ; read October 25, 2026. ↩ ↩2

  6. Maryland Public Service Commission, RM 56 docket index (entries through October 13, 2026), https://webpscxb.pscmaryland.com/DMS/rm/rm56 ; read October 25, 2026. ↩

  7. Maryland Division of State Documents, Table of Pending Proposals and Cumulative Table of COMAR Regulations Adopted, Amended, or Repealed (both PDF files created October 15, 2026, covering the Maryland Register through its October 16, 2026 issue), https://dsd.maryland.gov/PDF/ProposalTable.pdf ; https://dsd.maryland.gov/PDF/CumulativeTable.pdf ; read October 25, 2026. ↩

  8. Maryland Public Service Commission, Report on the Status of Net Energy Metering in the State of Maryland, November 2025 (revised November 20, 2025), executive summary and capacity discussion; operating data as of June 30, 2025; https://psc.maryland.gov/wp-content/uploads/2025-Net-Metering-Report-4.pdf ; read October 25, 2026. ↩ ↩2 ↩3 ↩4

  9. Maryland General Assembly, HB 1532 (enrolled, approved May 12, 2026), Public Utilities Article 7-306(j), https://mgaleg.maryland.gov/2026RS/bills/hb/hb1532E.pdf ; read October 25, 2026. ↩

  10. Maryland General Assembly, HB 1532 (enrolled, approved May 12, 2026), Public Utilities Article 7-306(a)(11), https://mgaleg.maryland.gov/2026RS/bills/hb/hb1532E.pdf ; read October 25, 2026. ↩ ↩2 ↩3

  11. Maryland General Assembly, Public Utilities Article 7-306(e), current online statute text (undated page), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-306&enactments=false ; read October 25, 2026. ↩ ↩2

  12. Maryland General Assembly, Public Utilities Article 7-306(f), current online statute text (undated page), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-306&enactments=false ; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5

  13. Maryland General Assembly, HB 1532 (enrolled, approved May 12, 2026), Public Utilities Article 7-306(d)(2)-(4), https://mgaleg.maryland.gov/2026RS/bills/hb/hb1532E.pdf ; read October 25, 2026. ↩ ↩2

  14. Montgomery County Department of Permitting Services, Residential Solar Permit Process, current page (undated), https://www.montgomerycountymd.gov/department-permitting-services/all-permits/residential-permits/residential-solar-permit-process ; read October 25, 2026. ↩

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