This document summarizes Maryland's community solar pilot program. Key points:
- Maryland passed legislation in 2015 establishing a 3-year community solar pilot program as part of its net metering mandate. The Public Service Commission was tasked with regulating the program.
- The program allows individual solar projects up to 2 MW. Total program size is 220 MW, allocated among utilities. 30% is reserved for low-to-moderate income subscribers and 30% for special projects.
- Developing a project takes 15 months and involves securing sites, permits, contracts, financing and enrolling subscribers before a 12-month deadline to begin operations.
- The program provides incentives like a full retail credit for subscribers and excess
Dominion Energy Efficiency Collaborative Presentation
Developing Maryland's Shared Solar Pilot Program
1. Developing A Shared Solar Pilot Program That Works for All Stakeholders
Maryland Community Solar: From Regulations to Revenue
Michael G. Miller, CEO – Ogos Energy LLC
MikeMiller@OgosEnergy.com | @OgosEnergyCEO | Severna Park, MDCOMMUNITYSOLAR:CRITICALSUCCESSFACTORS
History:
HB-1087: "Community Solar Generating
System Program". Enabling Legislation
Passed May 2015.
Enacted With Bi-Partisan Support
Three-Year Pilot Program As Subset of Pre-
existing Net Metering Mandate
Rulemaking and Oversight Delegated to
Maryland Public Service Commission
Key Provisions:
Mandatory Electric Distribution Company
Cooperation. No Rate-Base Treatment.
Individual Projects Allowed Up To 2.0
Megawatt-ac. Program Size Sufficient for
Study of Results. Subscriber Contracts
Honored for 25 Years After Pilot Ends.
Projects Defined By "Subscriber
Organization". Anchor Subscriber May
Take Up To 60% of Total Capacity. Low-
Moderate-Income Household Participation
Must Be Encouraged.
Flexibility, Innovation & Experimentation
Encouraged. No Limitation on Ownership
Models. Program Study Report &
Recommendations Due After 3 Years.
MARYLAND
COMMUNITY
SOLAR:
LEGISLATIVE
MANDATE
TIME
PERCENTAGE
of SUCCESS
4 Months
12) Achieve "Commercial
Operations Date"
5%
1 Months
10) Ramp-Up Enrollment of
Community Solar Subscribers
(Offtake Agreements)
11) Issue Construction "Notice
to Proceed"
10%
2 Months
7) Finalize Project Plan for:
Procurement, Financing, O&M
and Offtake
8) Final Approval of Land-Use
and Construction Permits
9) Execute Engineering-
Procurement-Construction
Contracts and Achieve
"Financial Close"
20%
4 Months
4) Apply for Planning & Zoning
Entitlements
5) Register "Subscriber
Organization" with Public
Service Commission
6) Meet Criteria for "Capacity
Allocation" under Community
Solar Tariff
35%
2 Months
2) Complete Preliminary Project
Plan and Analysis
3) Initiate Interconnection
Request
10%
2 Months 1) Secure Appropriate Solar Site 20%
15 Months 100%
COMMUNITY SOLAR:
PROJECT DEVELOPMENT
PROCESS
Federal:
Extension of Federal Investment Tax Credit
Through 2021
Accelerated Depreciation Tax Shield
Incentives & Initiatives Across Multiple
Federal Agencies; Led by Dept. of Energy &
EPA
State of Maryland:
Mandatory Renewable Portfolio Standard;
including Solar Carve-Out and Non-
Compliance Payments
Net Energy Metering Program; 1,500
Megawatts Authorized
Distributed Generation Systems up to 2.0
Megawatts Covered by Streamlined Small
Generator Interconnection Procedures
SUPPORTIVE
MACRO
ENVIRONMENT
Process:
Maryland Public Service Commission
Convened Broad and Open-Ended
Stakeholder Group to Draft and Deliberate
on Regulations. Regular Meetings
Extended Over a 9-Month Period.
Active Working Group Participants
Included: All Maryland Utilities, Large &
Small Solar Developers, Energy Retailers,
Advocacy Organizations, Govt Entities
including Maryland Energy Administration,
and Public At-Large.
Multiple Iterations of Draft Regulations
Published. Robust Debate on Policies and
Detailed Language. Extensive Testimony
Filed by Many Dozens of Stakeholders.
Dueling Consensuses Emerged Among
Developers and Utilities, Respectively.
Final Regulations Published by Maryland
Public Service Commission; Effective July
2016. Implementing Tariffs Due From
Each Utility September 2016. Program
Operational by October 2016.
Results:
Full Retail Credit to Subscribers via Virtual
Net Energy Metering. Excess Generation
Purchased At Avoided Cost Rate.
Subscriptions Denominated in Percentage of
Monthly Output. Unlimited Flexibility in
Structuring Subscriber Contracts. Free
Movement of Subscribers.
Adequate Program Size; 220 Megawatt-ac.
Based on 1.5% of Maryland Peak Usage.
Each Utility Obligated to Accept Its Pro-
Rata Share of Community Solar.
Carves-Out 30% of Program Capacity for
Projects With Subscriber Mix of At Least
30% Low-Moderate Income. Carves-Out
Additional 30% for Rooftop, Brownfield,
Small or Other Special Projects.
Complex Criteria for Rationing Program
Capacity. Application Requires Approved
Interconnection Agreement. Only Twelve
Months to Achieve Commercial Operations
Date. Anti-Gold Rush Provisions to Be
Finalized in Tariffs.
INCLUSIVE &
TRANSPARENT
RULE-MAKING
MARYLAND UTILITIES
SOLAR PROJECT
DEVELOPERS
LOW-MODERATE INCOME
SUBSCRIBERS & MARKET-
RATE SUBSCRIBERS
ENGINEERING /
PROCUREMENT /
CONSTUCTION COMPANIES.
SUPPLY CHAIN
PARTICIPANTS
TAX-EQUITY INVESTORS &
DEBT PROVIDERS
* Regulatory Mandate *Attractive Program Size: 220MW * No Solar Resource Constraint
* Program Cost Recovery *Full Retail Credit: Pricing Headroom * Expected Savings Vs. Rooftop
* Influence Pilot Study Results * Longterm Offtake: 25 Year Life * Friendly Contract & Credit Models
* 9% to 11% IRR with 50% of Total
Funding Requirements Sourced from
Tax Equity Investors
WIN-WIN
STAKEHOLDER
MOBILIZATION
FOR PROGRAM
EXECUTION * Total Pilot Program Capex Likely to
Exceed $400 Million