Net Energy Metering - Portable Solar Electric Generating Facilities

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 39
C5, M5 6lr1206
(PRE–FILED)
By: Delegate Taveras
Requested: October 15, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Net Energy Metering – Portable Solar Electric Generating Facilities 2

FOR the purpose of authorizing the use of portable solar electric generating facilities by an 3
eligible customer–generator for the purpose of net energy metering; and generally 4
relating to portable solar electric generating facilities and net energy metering. 5

BY repealing and reenacting, with amendments, 6
Article – Public Utilities 7
Section 7–306 8
Annotated Code of Maryland 9
(2025 Replacement Volume and 2025 Supplement) 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12

Article – Public Utilities 13

7–306. 14

(a) (1) In this section the following words have the meanings indicated. 15

(2) “Biomass” means “qualified biomass” as defined in § 7–701 of this title. 16

(3) “Closed conduit hydro” means a hydroelectric generating facility that: 17

(i) generates electricity within existing piping or limited adjacent 18
piping of a potable water supply system; 19

(ii) is owned or operated by a municipal corporation or public water 20
authority; and 21
2 HOUSE BILL 39

(iii) is designed to produce less energy than is consumed to operate 1
the water supply system. 2

(4) “Eligible customer –generator” means a customer that owns and 3
operates, leases and operates, or contracts with a third party that owns and operates a 4
biomass, micro combined heat and power, solar, PORTABLE SOLAR, fuel cell, wind, or 5
closed conduit hydroelectric generating facility that: 6

(i) is located on the customer’s premises or contiguous property; 7

(ii) is interconnected and operated in parallel with an electric 8
company’s transmission and distribution facilities; and 9

(iii) is intended primarily to offset all or part of the customer’s own 10
electricity requirements. 11

(5) “Fuel cell” means an electric generating facility that: 12

(i) includes integrated power plant systems containing a stack, 13
tubular array, or other functionally similar configuration used to electrochemically convert 14
fuel to electric energy; and 15

(ii) may include: 16

1. an inverter and fuel processing system; and 17

2. other plant equipment to support the plant’s operation or 18
its energy conversion, including heat recovery equipment. 19

(6) “Micro co mbined heat and power” means the simultaneous or 20
sequential production of useful thermal energy and electrical or mechanical power not 21
exceeding 30 kilowatts. 22

(7) “Net energy metering” means measurement of the difference between 23
the electricity that is supplied by an electric company and the electricity that is generated 24
by an eligible customer –generator and fed back to the electric grid over the eligible 25
customer–generator’s billing period. 26

(8) “Net excess generation” means the amount of the electric ity generated 27
by an eligible customer –generator that is in excess of the electricity consumed by the 28
eligible customer–generator and that results in a negative kilowatt –hour reading at the 29
end of the eligible customer–generator’s billing cycle. 30

(9) “PORTABLE SOLAR ” MEANS A MOVEABLE SOL AR ELECTRIC 31
PHOTOVOLTAIC GENERATING FACILITY THAT: 32

HOUSE BILL 39 3

(I) HAS A GENERATING CAPACITY THAT DOES NOT EXCEED 120 1
KILOWATTS, AS MEASURED BY THE A LTERNATING CURRENT R ATING OF THE 2
DEVICE’S INVERTER; 3

(II) IS DESIGNED TO BE CONNECTED TO AN ELIG IBLE 4
CUSTOMER–GENERATOR’S ELECTRIC SYSTEM TH ROUGH A STANDARD 120 VOLT 5
ALTERNATING CURRENT OUTLET; 6

(III) IS INTENDED PRIMARIL Y TO OFFSET ALL OR P ART OF THE 7
CUSTOMER’S OWN ELECTRICITY REQUIREMENTS; 8

(IV) MEETS THE STANDARDS OF THE MOST RECENT VERSION OF 9
THE NATIONAL ELECTRICAL CODE; AND 10

(V) IS CERTIFIED TO MEET ALL APPLICABLE STAND ARDS, AS 11
DETERMINED BY A NATIONALLY RECOGNIZED TESTING LABORATORY. 12

(b) The General Assembly finds and declares that a program to provide net energy 13
metering for eligible customer –generators is a means to encourage private investment in 14
renewable energy resources, stimulate in –State economic growth, enhance continued 15
diversification of the State’s energy resource mix, and reduce costs of interconnection and 16
administration. 17

(c) An electric company serving an eligible customer–generator shall ensure that 18
the meter installed for net energy metering is capable of measuring the fl ow of electricity 19
in two directions. 20

(d) The Commission shall require electric utilities to develop a standard contract 21
or tariff for net energy metering and make it available to eligible customer –generators on 22
a first–come, first–served basis until the rated generating capacity owned and operated by 23
eligible customer–generators in the State reaches 3,000 megawatts. 24

(e) (1) A net energy metering contract or tariff shall be identical, in energy 25
rates, rate structure, and monthly charges, to the contract or tariff that the customer would 26
be assigned if the customer were not an eligible customer–generator. 27

(2) (i) A net energy metering contract or tariff may not include charges 28
that would raise the eligible customer–generator’s minimum monthly charge above that of 29
customers of the rate class to which the eligible customer –generator would otherwise be 30
assigned. 31

(ii) Charges prohibited by this paragraph include new or additional 32
demand charges, standby charges, customer charges, and minimum monthly charges. 33

(f) (1) The electric company shall calculate net energy metering in accordance 34
with this subsection. 35
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(2) Net energy produced or consumed on a regular basis shall be measured 1
in accordance with standard metering practices. 2

(3) If electricity su pplied by the grid exceeds electricity generated by the 3
eligible customer–generator during a month, the eligible customer–generator shall be billed 4
for the net energy supplied in accordance with subsection (e) of this section. 5

(4) If electricity generated by the eligible customer –generator exceeds the 6
electricity supplied by the grid, the eligible customer –generator shall be billed only 7
customer charges for that month in accordance with subsection (e) of this section. 8

(5) (i) An eligible customer–generator under paragraph (4) of this 9
subsection may: 10

1. accrue net excess generation for a period: 11

A. not to exceed 12 months; and 12

B. that ends with the billing cycle that is complete 13
immediately prior to the end of April of each year; or 14

2. except for an eligible customer –generator served by a 15
municipal electric utility or an electric cooperative and subject to subparagraph (iv) of this 16
paragraph, accrue net excess generation for an indefinite period regardless of whether the 17
eligible customer –generator previously accrued net excess generation for a period 18
authorized under item 1 of this subparagraph. 19

(ii) The electric company shall carry forward net excess generation 20
until: 21

1. the eligible customer –generator’s consump tion of 22
electricity from the grid eliminates the net excess generation; 23

2. the accrual period under subparagraph (i)1 of this 24
paragraph expires; or 25

3. the account is closed. 26

(iii) 1. If an eligible customer –generator elects to accrue net 27
excess generation for a period not to exceed 12 months under subparagraph (i)1 of this 28
paragraph, the dollar value of net excess generation shall be equal to the generation or 29
commodity portion of the rate that the eligible customer –generator would have been 30
charged by the electric company averaged over the previous 12 –month period ending with 31
the billing cycle that is complete immediately before the end of April multiplied by the 32
number of kilowatt–hours of net excess generation. 33

HOUSE BILL 39 5

2. For an eligible custom er–generator that elects to accrue 1
net excess generation under subparagraph (i)1 of this paragraph and is served by a 2
community choice aggregator or an electricity supplier, the dollar value of the net excess 3
generation shall be equal to the generation or commodity rate that the customer would 4
have been charged by the community choice aggregator or electricity supplier multiplied 5
by the number of kilowatt–hours of net excess generation. 6

(iv) If an eligible customer –generator elects to accrue net excess 7
generation for an indefinite period under subparagraph (i)2 of this paragraph: 8

1. the eligible customer–generator may not elect to switch to 9
accruing net excess generation under subparagraph (i)1 of this paragraph unless the 10
electric company approves the switch; and 11

2. the electric company shall, within 15 days after an eligible 12
customer–generator’s account is closed, pay the eligible customer–generator, in accordance 13
with subparagraph (v) of this paragraph, for any accrued net excess generation remaining 14
at the time the account is closed. 15

(v) The Commission shall establish a method for calculating the 16
value of any accrued net excess generation that a customer –generator elects to accrue for 17
an indefinite period under subparagraph (i)2 of this paragraph. 18

(6) (i) If an eligible customer –generator elects to accrue net excess 19
generation under paragraph (5)(i)1 of this subsection, on or before 30 days after the billing 20
cycle that is complete immediately prior to the end of April of each year, the electric 21
company shall pay the eligible customer–generator for the dollar value of any accrued net 22
excess generation remaining at the end of the previous 12 –month period ending with the 23
billing cycle that is complete immediately before the end of April. 24

(ii) Within 15 days after the date an eligible customer –generator 25
that elects to accrue net excess generation under paragraph (5)(i)1 of this subsection closes 26
the eligible customer –generator’s account, the electric company shall pay the eligible 27
customer–generator for the dollar value of any accrued net excess generation remaining at 28
the time the eligible customer–generator closes the account. 29

(7) (i) Notwithstanding paragraphs (5) and (6) of this subsection, an 30
eligible customer–generator served by an electric cooperative that serves a population of 31
less than 250,000 in its distribution territory may choose to be paid for the dollar value of 32
net excess generation remaining at the end of each month instead of at the end of the 33
accrual period specified under paragraph (5)(i)1 of this subsection. 34

(ii) If an eligible customer–generator chooses to be paid for the dollar 35
value of net excess generation remaining at the end of each month: 36

1. the customer–generator may accrue net excess generation 37
on a monthly basis; 38
6 HOUSE BILL 39

2. the dollar value of the net excess generation shall be equal 1
to the generation or commodity portion of the rate that the eligible customer –generator 2
would have been charged by the electric company for the previous month; and 3

3. on or before 30 days after the end of each month, the 4
electric cooperative shall pay the eligible customer –generator for the dollar value of net 5
excess generation remaining at the end of the previous month. 6

(g) (1) Except as provided in paragraphs (6), (7), and (8) of this subsection, the 7
generating capacity of an electric generating system used by an eligible 8
customer–generator for net metering may not exceed 2 megawatts. 9

(2) An electric generating system used by an eligible customer –generator 10
for net metering shall meet all applicable safety and performance standards established by 11
the National Electrical Code, the Institute of Electrical and Electronics Engineers, and 12
Underwriters Laboratories. 13

(3) The Commission may adopt by regulation additional control and testing 14
requirements for eligible customer –generators that the Commission determines are 15
necessary to protect public safety and system reliability. 16

(4) An electric company may not require an eligible customer –generator 17
whose electric gen erating system meets the standards of paragraphs (2) and (3) of this 18
subsection to: 19

(i) install additional controls; 20

(ii) perform or pay for additional tests; or 21

(iii) purchase additional liability insurance. 22

(5) An eligible customer–generator or the eligible customer –generator’s 23
assignee shall own and have title to all renewable energy attributes or renewable energy 24
credits associated with any electricity produced by its electric generating system. 25

(6) The Commission may n ot prohibit the construction or operation of 26
multiple net metered solar energy generating facilities located on separate contiguous lots 27
that are owned by a local government solely because the capacity of the combined net 28
metering systems exceeds the limit established under paragraph (1) of this subsection, if: 29

(i) the net metered solar energy generating facilities are intended to 30
be used solely for the benefit of the local government; 31

(ii) the total capacity of the net metered solar energy generati ng 32
facilities on the contiguous lots does not exceed 5 megawatts; 33

HOUSE BILL 39 7

(iii) the contiguous lots were not subdivided for the purpose of 1
circumventing the limit established under paragraph (1) of this subsection; and 2

(iv) the utility serving the net mete red solar energy generating 3
facilities is not an electric cooperative or municipal electric utility. 4

(7) The generating capacity of a community solar energy generating system 5
established under § 7–306.2 of this subtitle that is used for net metering may not exceed 5 6
megawatts. 7

(8) The generating capacity of a net metered facility that is meter 8
aggregated under § 7–306.3 of this subtitle may not exceed 5 megawatts. 9

(h) An eligible customer –generator participating in net energy metering may 10
participate in the aggregation activities of a community choice aggregator under § 7–510.3 11
of this title. 12

(i) Notwithstanding the generating capacity limits established in subsection (g) 13
of this section, an eligible customer –generator participating in meter aggregation under § 14
7–306.2 or § 7 –306.3 of this subtitle may receive excess generation from more than one 15
generating system, including if the combined generating capacity of all net metered 16
facilities that are meter aggregated exceeds 5 megawatts. 17

(j) On or b efore November 1 of each year, the Commission shall report to the 18
General Assembly, in accordance with § 2 –1257 of the State Government Article, on the 19
status of the net metering program under this section, including: 20

(1) the amount of capacity of electric generating facilities owned and 21
operated by eligible customer–generators in the State by type of energy resource; 22

(2) based on the need to encourage a diversification of the State’s energy 23
resource mix to ensure reliability, whether the rated generating capacity limit in subsection 24
(d) of this section should be altered; and 25

(3) other pertinent information. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2026. 28