For Maryland homeowners and businesses with solar panels, Net Energy Metering (NEM) can make a major difference to the financial value of a solar system. The basic idea is that when a solar system is producing more solar energy than a property is using, the excess energy goes back to the grid. Then the customer receives a credit under net metering rules.
Maryland’s net metering system is entering an important transition period. In 2026, the General Assembly enacted changes that set a path toward a successor program while retaining important protection for certain existing qualifying programs.
Understand what the Maryland Net Metering Policy changes mean before starting a new solar project.
How Does Net Metering Work in Maryland
Net metering measures the differences between electricity supplied by the utility and the electricity generated by an eligible customer generator and sent to the grid during the billing period.
When your panels are not producing enough electricity to meet your needs, you draw power directly from the utility grid. When your panels use less energy than generated, the excess energy simply goes back to the grid—for others to use.
To keep track of both, a bidirectional meter is used. This rule is applied to several types of eligible customer- generators, including solar, wind, biomass, fuel cells, etcetera.
The thing to highlight is how exported electricity is valued. Under Maryland’s existing Net Metering Policy framework. The customer’s net metering arrangement uses the applicable energy rates and rate structure, along with the monthly charges that would normally apply to that customer.
What Will Happen on July 1, 2027
Under the 2026 Utility Relief Act (Chapter 353), Maryland’s public service commission must approve a successor NEM framework by February 1, 2027. Until then, the existing NEM framework will remain available for eligible projects.
A significant number that keeps coming up in Maryland’s local solar market is- 3000 MW
That number is the current capacity limit for the existing NEM program. The 2026 Utility Relief Act changes how the state will move forward with the Net Metering policies in Maryland.
Here’s What It Means
For existing solar customers—
- Existing users keep using their 1:1 net metering credits.
- Benefits do not automatically disappear on 1st July, 2027.
- Enrolled systems are locked into legacy rules for a set period.
For new solar applicants-
- Applications approved after the cutoff move directly to the successor tariff.
- Compensation for the excess electricity sent back to the grid drops below the retail price.
- Legacy enrollment stops immediately after the state hits 3000 MW or after July 1st,2027.
Project-specific exceptions-
- Your transition timeline depends heavily upon your exact date in the utility queue.
- Shared solar projects face distinct criteria to secure legacy rates.
- There will be separate transition tracks to evaluate commercial solar projects, residential projects, and community-based solar systems
The Golden Rule: Getting Grandfathered In
The term “grandfathering”, in this context, is like a “price-lock” process. If you get your solar panels set up under the old rule, the companies cannot force you onto the less profitable rates in the future, and you get to keep your 1:1 retail credit.
How To Lock In Your Rates
How you qualify for the price lock depends on what kind of solar projects you have.
For Home-owners(foortop solar):
- Your system needs to be fully installed
- It needs to be approved by the utility company before July 1, 2027.
- Once you get your official “permission to operate”, your utility rates are locked-in for life
For community solar panels-
- The project developers must pay 50% of their utility hookup fees
- Pay this fee before July 1, 2027, to secure your spot in the state’s official waiting list
- After completion of these steps, you have until July 2030 to finish construction and start operating the project.
What You Should Do Now
To secure Maryland’s current 1:1 net-metering rates, you must qualify under existing rules before July 1, 2027, or before the 3000 MW statewide cap fills. Simply installing panels before the deadline does ot guarantee eligibility: you must also navigate your utility’s interconnection queue and meet strict statutory requirements.
Always keep precise records of your applications and track variables like system size and territory. Always verify your status with a solar professional or your utility before making financial commitments.
At Solar Brokers USA– Maryland, we are committed to driving a sustainable tomorrow by helping you navigate these complex transitions. Visit our website and secure your future-ready energy savings today.