Does Maryland Have Community Solar Laws?

Yes. Maryland has legislation and policies that explicitly enable community solar projects. In 2023 the House Bill 908 was passed to amend §7-306.2 of the Public Utilities Article to establish a permanent community solar program (replacing the pilot program). The law directed the Maryland Public Service Commission (PSC) to adopt regulations by January 1, 2025 for the permanent program, and by January 1, 2026 for consolidated billing mechanisms. The former pilot program (launched in 2017) had grown to 139 pilot community solar projects representing about 204 MW of capacity by mid-2024.

Key policy details include:

The statute requires subscriber organizations to secure the PSC’s approval and allows municipal utilities and cooperative utilities to participate.
Before May 15, 2016, smaller systems could convert into the program, but new systems must meet defined standards for location, interconnection and consumer protection.
Under the regulations, a community solar project in Maryland must allocate at least 40% of its kilowatt-hour output to low- and moderate-income (LMI) subscribers (unless wholly owned by the subscribers themselves). LMI subscribers cannot be charged more than 90% of the monetary value of their bill credits, thereby guaranteeing at least 10% savings.
Additional rules govern project siting: a community solar energy generating system may not be located on the same or adjacent parcel as an existing system if the combined installed capacity would exceed 5 MW, unless certain exemptions apply, such as brownfields, parking lots, rooftops, or agrivoltaic use if 75% of capacity serves LMI subscribers.
The program ensures that subscribers remain able to enroll with their electricity supplier, cannot be discriminated against for credit checks (for LMI subscribers), and credits are applied either as a reduction in kilowatt-hours or a dollar credit on the subscriber’s monthly bill.

So, yes, Maryland has clear enabling laws and regulatory frameworks for community solar. Importantly, the provisions for low- and moderate-income households are baked into the statute and regulations, making Maryland a strong example of equitable community solar policy.

What is Community Solar?

Community solar is a shared solar-energy model in which many customers participate in a single solar generation facility (a community solar farm) rather than each installing rooftop panels. A community solar project is connected to the utility grid, and subscribers purchase or lease a share of its production. In return, they receive credits on their electric bills reflecting the output of their share of the array.

When is community solar a good option? It is especially appropriate in cases where:

A household or business cannot install rooftop panels (e.g., due to shading, roof condition, renting, or lack of property ownership).
The cost of installing residential solar on a roof is prohibitive, or the homeowner prefers a lower-commitment alternative.
A customer wants clean, local renewable generation but prefers not to manage equipment, maintenance or permitting.
Advantages of community solar over residential solar include:
No installation or maintenance of panels on your property: you subscribe to a project and receive credits, rather than owning and installing rooftop equipment.
Access for renters or multi-unit dwellings where rooftop installations may be impractical.
Flexibility: you can often choose the size of your share, potentially scale up or down, or transfer your subscription if you move within the service territory.
Economies of scale: large centralized solar arrays can reduce unit cost relative to many small rooftop systems and may capture site benefits (ideal orientation, better land use, better financing) unavailable to individual rooftop installs.
Broader participation: community solar allows more people (homeowners, renters, businesses) to access solar energy and its benefits without the full upfront capital of residential solar.

In Maryland, community solar offers a way for customers to tap into the benefits of solar even if their own roof or property isn’t suited.

Why Community Solar?

There are several compelling reasons for homeowners, renters, and businesses in Maryland to choose community solar. If you own a home but cannot or prefer not to install rooftop panels, a community solar subscription gives access to solar-energy benefits (bill credits, clean energy) without the installation risk or maintenance obligations of a rooftop system.

As a renter does not need to install equipment on their building or own the property, community solar is one of the few realistic ways for them to participate in solar. You pay a subscription and receive credits rather than owning panels. For businesses and farms, community solar can provide a hedge against rising electricity costs, reduce your energy procurement risk, and support local clean-energy development. A business might subscribe to a larger share of a community solar project, aligning clean-energy goals with operational economics.

Additional benefits of community solar include:

Predictable, long-term savings: many Maryland projects are structured to deliver annual bill-credit savings (often 5-10% off electricity costs) over 10-20 years.
Support for equity and community development: because Maryland’s program requires a significant share of output to serve low- and moderate-income subscribers, community solar becomes a tool for inclusive clean-energy access.
Local economic and environmental benefits: community solar farms create local jobs, generate lease income for landowners (especially when sited on brownfields or unused rooftops), diversify the energy-resource mix, and contribute to greenhouse-gas reduction goals.
Flexibility and reduced obligation: you are not responsible for operations, repairs or equipment replacement. The subscriber organization handles those, and you just receive credits.

In short, community solar in Maryland offers a lower-risk, more inclusive path to solar energy compared with residential solar for many people.

Are there Community Solar Projects in Maryland?

Yes. Maryland already has numerous community solar farms and subscription-based projects operating under its pilot and now permanent programs. The listing maintained by the Maryland Energy Administration shows dozens of projects of various capacities, spanning categories such as Open, Small/Brownfield/Other, and LMI.

Here are five of the largest or most notable community solar projects in Maryland:

A set of 14 new rooftop community solar projects, developed by Solar Landscape in 2025, totaling 6.6 MW across the state and designed to serve nearly 5,870 homes.
The original Maryland pilot program that included 139 community solar pilot projects representing ~204 MW of capacity by mid-2024.
Projects hosted on former brownfields, rooftops and commercial properties under the LMI category, serving qualified low- and moderate-income subscribers.
Projects interconnected across major utility territories such as Baltimore Gas and Electric (BGE), Pepco and Delmarva Power.
Solar Landscape’s pipeline of 57 community solar rooftop projects in Maryland, of which 14 are energized and many more in development.

Any Maryland resident can join these programs as long as they are a customer of the utility or electricity supplier in the same service territory as the project and meet the subscriber criteria. They would subscribe to a “block” or share of a community solar project and start receiving bill credits. For instance, by entering your ZIP code in a marketplace you can view available community solar subscriptions.

If you rent, own a home, or operate a business in Maryland and your utility territory supports community solar, you can apply to subscribe. The exact subscription terms, minimums and pricing differ by project, so you’ll want to check for availability in your utility service area, any waitlists, contract terms, and how credits flow to your bill.

How Does Community Solar Work in Maryland?

In Maryland, a community solar project is sited and connected to the grid by a subscriber organization (the developer or owner of the array). The array is operated under the program administered by the Maryland PSC and the Maryland Energy Administration. Customers subscribe to a share of the array’s generation; the utility then applies bill credits to the subscriber’s account based on the output of the subscriber’s share of the project.

Key steps:

A project is constructed and interconnected via the utility; the state regulations cover site limitations, interconnection standards and consumer protections.
Residents and businesses subscribe to a portion of the array’s capacity (e.g., a block of kilowatts or a defined fraction of generation).
Each month the utility or its supplier receives the generation data and allocates a credit to the subscriber’s bill. The credit may appear as a reduction in kWh usage or as a dollar credit depending on contract terms.
The subscriber continues to receive service from their usual electricity provider; nothing on the roof needs to change.

Because many projects are structured with pricing models such that the subscription cost is less than or equal to the bill credits received, participants typically see savings over time (often 5-10% off annual electricity costs).

Projects can benefit indirectly from incentives. While a subscriber usually cannot claim any available tax credit for the panels (because the subscriber organization owns the array), the project developer may use federal and state incentives (e.g., Maryland Solar Alternative Compliance Payment funds, grants for LMI programs) to reduce costs which are passed through to subscribers in lower subscription fees. For low- and moderate-income targeted subscriptions, Maryland’s policies require at least a 10% discount and the prohibition of excessive subscription charges relative to credit value.

In summary, the subscriber pays for a share of the solar generation; the utility credits them for that share’s output; the net effect is lower electricity bills and support for local renewable generation with no rooftop installation required.

How Much Does Community Solar Cost in Maryland?

Community solar cost in Maryland depends on the project, your subscription size, and pricing model (which may be an up-front payment, monthly fee, or discount off utility rate). On average, participants can expect to save between about 5-10% off their annual electricity costs.

Here are approximate cost and savings ranges:

Some Maryland community solar subscription plans charge a rate such that the subscriber pays about $0.1197/kWh for their portion of the solar generation (in a “Gold Plan” example) while receiving a credit of $0.1330/kWh, delivering about $0.0133/kWh in savings. If you consume 9,600 kWh a year via that model, annual savings might be ~$128.
For low- to moderate-income (LMI) customers, some projects offer deeper discounts: e.g., a rate of $0.1131/kWh with the same credit of $0.1330/kWh to deliver ~$0.0200/kWh in savings under the “Gold Plan LMI” example.
Many subscription offerings advertise $0-down or small upfront investment models, or allow you to pay monthly for your share rather than a large up-front payment.
If the average residential customer saves ~5-10% on their annual bill, and if a household’s annual electricity cost was, say, $1,500, then savings might be $75 to $150 per year, meaning the subscription cost is structured so that the payback period is reasonable over the 15-20 year term.

While precise up-front subscription prices vary, a rough estimate for Maryland community solar cost could be:

Minimum effective cost: a small subscription with minimal up-front fees and modest savings (~5% of your usual bill)
Maximum effective cost: a larger subscription where you commit to a larger share of generation and savings (~10% or more of your annual bill)

The cost covers your share of equipment, installation, land or rooftop lease, interconnection, operation and maintenance, and subscriber administration for the life of the project. Because Maryland’s regulation ensures transparency and subscriber protections, you are able to compare offers, check contract terms, ensure you aren’t being charged more than your anticipated credit and evaluate how much of your annual usage you will offset.