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The Maryland Public Service Commission filed a Letter Order to the Net Metering Working Group requesting additional consideration regarding the statutory language concerning low-to-moderate-income subscribers. 

From Letter Order: 

[ *** ] At the December 23, 2025, Administrative Meeting, the Commission reviewed and heard comments on tariff filings by Baltimore Gas & Electric Company, Delmarva Power & Light Company, Potomac Electric Power Company, and Potomac Edison Company (“PE”) relating to, inter alia, Community Solar Program updates. Included in PE’s proposed tariff update was language relating to the statutory requirement that community solar energy generating systems (“CSEGS”) serve at least 40 percent of their kWh output to low-to-moderate-income (“LMI”) subscribers. PE’s proposed language garnered significant comment from the Commission’s Technical Staff (“Staff”), the Office of the People’s Counsel (“OPC”) and parties representing the community solar sector. After considering this matter, the Commission accepted the proposed tariff pages for filing, with an effective date of January 1, 2026, excluding the tariff language that would have granted PE the authority to discontinue service to projects that do not maintain the 40 percent kWh output to LMI requirement.

Parties who commented on PE’s proposed LMI language generally agree that it is important for CSEGS to adhere to the required LMI allocation. However, various parties discussed fluctuations in subscribers as part of the normal course of business for CSEGS. Many parties discussed new statutory language relating to unsubscribed energy, which allows any unsubscribed energy from CSEGS to be banked for up to one year before it must be purchased by the utility at avoided cost; within that year, the banked credits may be allocated to one or more subscribers. Commenting parties generally agree that this topic warrants more conversation within the Net Metering Working Group.

The Commission agrees that this topic deserves more discussion and directs the Net Metering Working Group to attempt to find greater consensus. The Commission notes the Net Metering Working Group already plans to present recommendations by April 1, 2026, regarding a potential new rulemaking on community solar, and directs that this issue be addressed in that suite of recommendations.

In formulating a recommendation on the topic of LMI subscriptions, subscriber fluctuations, unsubscribed energy, and credit banking, the Commission encourages the Net Metering Working Group to carefully consider the State policy goals outlined in PUA § 7- 306.2(b), the statutory language in PUA § 7-306.2 relating to definitions of “community solar energy generating systems” and “unsubscribed energy,” and the new statutory language in § 7- 306.2(d)(7) relating to credit banking. At this time, the Commission expects that the Net Metering Working Group can arrive at a comprehensive solution for persistent LMI shortfalls that does not involve an outcome as draconian as an entire CSEGS being disconnected. The Commission is encouraged by ideas put forward by various solar parties, and encourages the group to find solutions that may involve credit banking in a way that does not incentivize persistent LMI shortfalls; solutions that disincentivize persistent LMI shortfalls without jeopardizing entire projects and non-LMI subscribers; and proposed processes to ensure appropriate notice, opportunities to cure, etc. [ *** ] 

Letter Order (01/06/2025)
RM56 (11/10/2015)
(Revisions to COMAR 20.62 – Community Solar Energy Generation Systems)