Net Energy Metering, SUNRISE Program, and Community Solar Energy Generating Systems Program (SUNRISE Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1195*

HOUSE BILL 1195
C5, M5, D5 6lr2316
CF SB 843
By: Delegate Stein
Introduced and read first time: February 11, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Net Energy Metering, SUNRISE Program, and Community Solar Energy 2
Generating Systems Program 3
(SUNRISE Act) 4

FOR the purpose of requiring the Office of Home Energy Programs to administer, or 5
through a local administering agency administer, certain programs and activities 6
regarding low– and moderate–income households and the Community Solar Energy 7
Generating Systems Program; altering the method by which certain rated 8
generating capacity is counted toward the statewide net energy metering limit; 9
requiring the Public Service Commission to establish a certain statewide capacity 10
reservation system for certain net energy metering projects ; requiring electric 11
companies to automatically accept certain capacity reservations for a certain 12
qualified system under certain circumstances; requiring the Commission to establish 13
a Standard Utility Net –export Rate for Integrated Solar and Energy (SUNRI SE) 14
Program as the successor program to the net energy metering program; requiring 15
each electric company to implement the SUNRISE Program through certain tariffs; 16
altering the contents of a certain net energy metering report; establishing methods 17
by which a community solar energy generating system may satisfy certain low – or 18
moderate–income subscriber participation requirements; providing that certain 19
customers identified for enrollment in the Community Solar Energy Generating 20
Systems Program may opt out of enrollment; requiring certain customers to receive 21
a guaranteed electric bill savings under certain circumstances; requiring the Office 22
of Home Energy Programs or the Maryland Energy Administration to allocate a 23
certain dedicated block of capacity among e ligible households enrolled in the 24
Community Solar Energy Generating Systems Program; requiring electric 25
companies to apply certain bill credits to certain eligible households based on certain 26
instructions under certain circumstances; providing that certain eligible households 27
may not be required to execute a certain subscriber agreement or contract disclosure 28
form; and generally relating to net energy metering, the SUNRISE Program, and the 29
Community Solar Energy Generating Systems Program. 30

2 HOUSE BILL 1195

BY repealing and reenacting, without amendments, 1
Article – Human Services 2
Section 5–5A–01(a) and (d) 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5

BY adding to 6
Article – Human Services 7
Section 5–5A–09.1 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – Public Utilities 12
Section 7–306 and 7–306.2(a) 13
Annotated Code of Maryland 14
(2025 Replacement Volume and 2025 Supplement) 15

BY adding to 16
Article – Public Utilities 17
Section 7–306.2(o) and (p) 18
Annotated Code of Maryland 19
(2025 Replacement Volume and 2025 Supplement) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22

Article – Human Services 23

5–5A–01. 24

(a) In this subtitle the following words have the meanings indicated. 25

(d) “Office” means the Office of Home Energy Programs. 26

5–5A–09.1. 27

(A) IN THIS SECTION, “LOCAL ADMINISTERING AGENCY” HAS THE MEANING 28
STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 29

(B) THE OFFICE SHALL ADMINIST ER, DIRECTLY OR THROUGH LOCAL 30
ADMINISTERING AGENCI ES, THE PROGRAMS AND ACT IVITIES NECESSARY TO 31
IMPLEMENT § 7–306.2(O) AND (P) OF THE PUBLIC UTILITIES ARTICLE. 32

HOUSE BILL 1195 3

(C) THE OFFICE OR A LOCAL ADM INISTERING AGENCY MA Y RECEIVE 1
SUBSCRIBER ACQUISITI ON FEES AUTHORIZED B Y THE PUBLIC SERVICE 2
COMMISSION UNDER § 7–306.2(O)(12) OF THE PUBLIC UTILITIES ARTICLE. 3

(D) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE SHALL REPORT 4
TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 5
GOVERNMENT ARTICLE, ON THE IMPLEMENTATION OF § 7–306.2(O) AND (P) OF THE 6
PUBLIC UTILITIES ARTICLE DURING THE IMMEDIATELY PRECEDING FISCAL YEAR, 7
INCLUDING, TO THE EXTENT PRACTICABLE: 8

(1) FOR EACH ELECTRIC COMPANY SERVICE TERRITORY: 9

(I) THE NUMBER OF HOUSEHOLDS SERVED UNDER § 7–306.2(O) 10
OF THE PUBLIC UTILITIES ARTICLE; AND 11

(II) THE NUMBER OF HOUSEHOLDS SERVED UNDER § 7–306.2(P) 12
OF THE PUBLIC UTILITIES ARTICLE; 13

(2) ESTIMATED BILL SAVIN GS DELIVERED TO PART ICIPATING 14
HOUSEHOLDS; AND 15

(3) EXPENDITURES FUNDED BY SUBSCRIBER ACQUISITION FEES. 16

Article – Public Utilities 17

7–306. 18

(a) (1) In this section the following words have the meanings indicated. 19

(2) “Biomass” means “qualified biomass” as defined in § 7–701 of this title. 20

(3) “CAPACITY RESERVATION ” MEANS A RESERVATION OF NET 21
ENERGY METERED GENER ATING CAPACITY UNDER SUBSECTION (J) OF THIS 22
SECTION THAT COUNTS TOWARD THE STATEWIDE LIMIT UNDER SUBSECTION (D) OF 23
THIS SECTION. 24

(4) “Closed conduit hydro” means a hydroelectric generating facility that: 25

(i) generates electricity within existing piping or limited adjacent 26
piping of a potable water supply system; 27

(ii) is owned or operated by a municipal corporation or public water 28
authority; and 29

4 HOUSE BILL 1195

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

(5) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 3
MEANING STATED IN § 7–306.2 OF THIS SUBTITLE. 4

[(4)] (6) “Eligible customer–generator” means a customer that owns and 5
operates, leases an d operates, or contracts with a third party that owns and operates a 6
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 7
electric generating facility that: 8

(i) is located on the customer’s premises or contiguous property; 9

(ii) is interconnected and operated in parallel with an electric 10
company’s transmission and distribution facilities; and 11

(iii) is intended primarily to offset all or part of the customer’s own 12
electricity requirements. 13

[(5)] (7) “Fuel cell” means an electric generating facility that: 14

(i) includes integrated power plant systems containing a stack, 15
tubular array, or other functionally similar configuration used to electrochemically convert 16
fuel to electric energy; and 17

(ii) may include: 18

1. an inverter and fuel processing system; and 19

2. other plant equipment to support the plant’s operation or 20
its energy conversion, including heat recovery equipment. 21

(8) “MATURE NET ENERGY METERING PROJECT” MEANS A PROPOSED 22
QUALIFIED SYSTEM THAT MEETS THE ELIGIBILITY REQUIREMENTS FOR A CAPACITY 23
RESERVATION UNDER SUBSECTION (J) OF THIS SECTION. 24

[(6)] (9) “Micro combined heat and power” means the simultaneous or 25
sequential production of useful thermal energy and electrical or mechanical power not 26
exceeding 30 kilowatts. 27

[(7)] (10) “Net energy metering” means measurement of the difference 28
between the electricity that is supplied by an electric company and the electricity that is 29
generated by an eligible customer –generator and fed back t o the electric grid over the 30
eligible customer–generator’s billing period. 31

HOUSE BILL 1195 5

[(8)] (11) “Net excess generation” means the amount of the electricity 1
generated by an eligible customer –generator that is in excess of the electricity consumed 2
by the eligible customer–generator and that results in a negative kilowatt–hour reading at 3
the end of the eligible customer–generator’s billing cycle. 4

(12) “QUALIFIED SYSTEM” MEANS: 5

(I) A BEHIND –THE–METER ENERGY GENERAT ING SYSTEM 6
ASSOCIATED WITH AN ELIGIBLE CUSTOMER–GENERATOR UNDER THIS SECTION; 7

(II) AN ENERGY GENERATING SYSTEM THAT ENGAGES IN METER 8
AGGREGATION UNDER § 7–306.3 OF THIS SUBTITLE; AND 9

(III) A COMMUNITY SOLAR ENERGY GENERATING SYSTEM. 10

(13) “STANDARD UTILITY NET–EXPORT RATE FOR INTEGRATED 11
SOLAR AND ENERGY PROGRAM” OR “SUNRISE PROGRAM” MEANS A 12
COMPENSATION PROGRAM ADOPTED BY THE COMMISSION UNDER SUBSECTION (L) 13
OF THIS SECTION AS A SUCCESSOR PROGRAM TO THE NET ENERGY METER ING 14
PROGRAM UNDER SUBSECTIONS (D) THROUGH (F) OF THIS SECTION. 15

(14) “SUBSCRIBER ORGANIZATI ON” HAS THE MEANING STAT ED IN § 16
7–306.2 OF THIS SUBTITLE. 17

(b) The General Assembly finds and declares that a program to provide net energy 18
metering for eligible customer –generators is a means to encourage private investment in 19
renewable energy resources, stimulate in –State economic growth, enhance continued 20
diversification of the State’s energy resource mix, and reduce costs of interconnection and 21
administration. 22

(c) An electric company serving an eligible customer–generator shall ensure that 23
the meter installed for net energy metering is capable of measuring the flow of electricity 24
in two directions. 25

(d) (1) The Commission shall require electric utilities to develop a standard 26
contract or tariff for net energy metering and make it available to eligible 27
customer–generators on a first–come, first–served basis until the rated generating capacity 28
[owned and operated by eligible customer –generators in the State ] COUNTED TOWARD 29
THE STATEWIDE LIMIT UNDER PARAGRAPH (2) OF THIS SUBSECTIO N reaches 3,000 30
megawatts OF ALTERNATING CURRENT. 31

(2) RATED GENERATING CAPACITY SHALL BE COUNTED TOWARD THE 32
3,000 MEGAWATT ALTERNATING CURRENT STATEWIDE LIMIT AS THE SUM OF: 33

6 HOUSE BILL 1195

(I) QUALIFIED SYSTEMS OP ERATING IN THE STATE ON OR 1
BEFORE JULY 1, 2027; AND 2

(II) RESERVED CAPACITY AS SOCIATED WITH CAPACI TY 3
RESERVATIONS FOR MAT URE NET ENERGY METER ING PROJECTS UNDER 4
SUBSECTION (J) OF THIS SECTION. 5

(e) (1) A net energy metering OR SUNRISE PROGRAM contract or tariff 6
shall be identical, in energy rates, rate structure, and monthly charges, to the contract or 7
tariff that the customer would be assigned if the customer were not an eligible 8
customer–generator. 9

(2) (i) A net energy metering OR SUNRISE PROGRAM contract or 10
tariff may not include charges that would raise the eligible customer–generator’s minimum 11
monthly charge above that of customers of the rate class to which the eligible 12
customer–generator would otherwise be assigned. 13

(ii) Charges prohibited by this paragraph include new or additional 14
demand charges, standby charges, customer charges, and minimum monthly charges. 15

(f) (1) The electric company shall calculate net energy metering in accordance 16
with this subsection. 17

(2) Net energy produced or consumed on a regular basis shall be measured 18
in accordance with standard metering practices. 19

(3) If electricity supplied by the grid exceeds electricity generated by the 20
eligible customer–generator during a month, the eligible customer–generator shall be billed 21
for the net energy supplied in accordance with subsection (e) of this section. 22

(4) If electricity generated by the eligible customer –generator exceeds the 23
electricity supplied by the grid, the eligible customer –generator shall be billed only 24
customer charges for that month in accordance with subsection (e) of this section. 25

(5) (i) An eligible customer –generator under paragraph (4) of this 26
subsection may: 27

1. accrue net excess generation for a period: 28

A. not to exceed 12 months; and 29

B. that ends with the billing cycle that is complete 30
immediately prior to the end of April of each year; or 31

2. except for an eligible customer –generator served by a 32
municipal electric utility or an electric cooperative and subject to subparagraph (iv) of this 33
HOUSE BILL 1195 7

paragraph, accrue net excess generation for an indefinite period regardless of whether the 1
eligible customer –generator previously accrued net excess generation for a period 2
authorized under item 1 of this subparagraph. 3

(ii) The electric company shall carry forward net excess generation 4
until: 5

1. the eligible customer –generator’s consumption of 6
electricity from the grid eliminates the net excess generation; 7

2. the accrual period under subparagraph (i)1 of this 8
paragraph expires; or 9

3. the account is closed. 10

(iii) 1. If an eligible customer –generator elects to accrue net 11
excess generation for a period not to exceed 12 months under subparagraph (i)1 of this 12
paragraph, the dollar value of net excess generation shall be equal to the generation or 13
commodity portion of the rat e that the eligible customer –generator would have been 14
charged by the electric company averaged over the previous 12 –month period ending with 15
the billing cycle that is complete immediately before the end of April multiplied by the 16
number of kilowatt–hours of net excess generation. 17

2. For an eligible customer –generator that elects to accrue 18
net excess generation under subparagraph (i)1 of this paragraph and is served by a 19
community choice aggregator or an electricity supplier, the dollar value of the ne t excess 20
generation shall be equal to the generation or commodity rate that the customer would 21
have been charged by the community choice aggregator or electricity supplier multiplied 22
by the number of kilowatt–hours of net excess generation. 23

(iv) If an eligible customer –generator elects to accrue net excess 24
generation for an indefinite period under subparagraph (i)2 of this paragraph: 25

1. the eligible customer–generator may not elect to switch to 26
accruing net excess generation under subparagraph (i)1 of this paragraph unless the 27
electric company approves the switch; and 28

2. the electric company shall, within 15 days after an eligible 29
customer–generator’s account is closed, pay the eligible customer–generator, in accordance 30
with subparagraph (v) of this paragraph, for any accrued net excess generation remaining 31
at the time the account is closed. 32

(v) The Commission shall establish a method for calculating the 33
value of any accrued net excess generation that a customer –generator elects to accrue fo r 34
an indefinite period under subparagraph (i)2 of this paragraph. 35

8 HOUSE BILL 1195

(6) (i) If an eligible customer –generator elects to accrue net excess 1
generation under paragraph (5)(i)1 of this subsection, on or before 30 days after the billing 2
cycle that is complete immediately prior to the end of April of each year, the electric 3
company shall pay the eligible customer–generator for the dollar value of any accrued net 4
excess generation remaining at the end of the previous 12 –month period ending with the 5
billing cycle that is complete immediately before the end of April. 6

(ii) Within 15 days after the date an eligible customer –generator 7
that elects to accrue net excess generation under paragraph (5)(i)1 of this subsection closes 8
the eligible customer –generator’s acco unt, the electric company shall pay the eligible 9
customer–generator for the dollar value of any accrued net excess generation remaining at 10
the time the eligible customer–generator closes the account. 11

(7) (i) Notwithstanding paragraphs (5) and (6) of thi s subsection, an 12
eligible customer–generator served by an electric cooperative that serves a population of 13
less than 250,000 in its distribution territory may choose to be paid for the dollar value of 14
net excess generation remaining at the end of each mont h instead of at the end of the 15
accrual period specified under paragraph (5)(i)1 of this subsection. 16

(ii) If an eligible customer–generator chooses to be paid for the dollar 17
value of net excess generation remaining at the end of each month: 18

1. the customer–generator may accrue net excess generation 19
on a monthly basis; 20

2. the dollar value of the net excess generation shall be equal 21
to the generation or commodity portion of the rate that the eligible customer –generator 22
would have been charged by the electric company for the previous month; and 23

3. on or before 30 days after the end of each month, the 24
electric cooperative shall pay the eligible customer –generator for the dollar value of net 25
excess generation remaining at the end of the previous month. 26

(g) (1) Except as provided in paragraphs (6), (7), and (8) of this subsection, the 27
generating capacity of an electric generating system used by an eligible 28
customer–generator for net ENERGY metering may not exceed 2 megawatts. 29

(2) An electric generating system used by an eligible customer –generator 30
for net ENERGY metering shall meet all applicable safety and performance standards 31
established by the National Electrical Code, the Institute of Electrical and Electronics 32
Engineers, and Underwriters Laboratories. 33

(3) The Commission may adopt by regulation additional control and testing 34
requirements for eligible customer –generators that the Commission determines are 35
necessary to protect public safety and system reliability. 36

HOUSE BILL 1195 9

(4) An electric company may not require an eligible customer –generator 1
whose electric generating system meets the standards of paragraphs (2) and (3) of this 2
subsection to: 3

(i) install additional controls; 4

(ii) perform or pay for additional tests; or 5

(iii) purchase additional liability insurance. 6

(5) An eligible customer –generator or the eligible customer –generator’s 7
assignee shall own and have title to all renewable energy attributes or renewable energy 8
credits associated with any electricity produced by its electric generating system. 9

(6) The Commission may not prohibit the construction or operation of 10
multiple [net metered] solar energy generating facilities located on separate contiguous 11
lots that are owned by a local government solely because the capacity of the combined [net 12
metering] systems exceeds the limit established under paragraph (1) of this subsection, if: 13

(i) the [net metered] solar energy generating facilities are intended 14
to be used solely for the benefit of the local government; 15

(ii) the total capacity of the [net metered] solar energy generating 16
facilities on the contiguous lots does not exceed 5 megawatts OF ALTERNATING CURRENT; 17

(iii) the contiguous lots were not subdivided for the purpose of 18
circumventing the limit established under paragraph (1) of this subsection; and 19

(iv) the utility serving the [net metered ] solar energy generating 20
facilities is not an electric cooperative or municipal electric utility. 21

(7) The generating capacity of a community solar energy generating system 22
established under § 7–306.2 of this subtitle that is used for net ENERGY metering OR THE 23
SUNRISE PROGRAM may not exceed 5 megawatts OF ALTERNATING CURRENT. 24

(8) The generating capacity of a [net metered ] facility that is meter 25
aggregated under § 7–306.3 of this subtitle may not exceed 5 megawatts OF ALTERNATING 26
CURRENT. 27

(h) An eligible customer –generator participating in net energy metering may 28
participate in the aggregation activities of a community choice aggregator under § 7–510.3 29
of this title. 30

(i) Notwithstanding the generating capacity limits established in subsection (g) 31
of this section, an eligible customer –generator participating in meter aggregation under § 32
7–306.2 or § 7 –306.3 of this subtitle may receive excess generation from more than one 33
10 HOUSE BILL 1195

generating system, including if the combined generating capacity of all [net metered ] 1
facilities that are meter aggregated exceeds 5 megawatts OF ALTERNATING CURRENT. 2

(J) (1) ON OR BEFORE JULY 1, 2027, THE COMMISSION SHALL 3
ESTABLISH, BY ORDER OR REGULATI ON, A STANDARDIZED STATE WIDE CAPACITY 4
RESERVATION SYSTEM FOR MATURE NET ENERGY METERING PROJECTS THAT ARE 5
NOT YET OPERATIONAL. 6

(2) WHEN THE RESERVATION SYSTEM REQUIRED UNDER PARAGRAPH 7
(1) OF THIS SUBSECTION I S ESTABLISHED , AN ELECTRIC COMPANY SHALL 8
AUTOMATICALLY ACCEPT A CA PACITY RESERVATION F OR A QUALIFIED SYSTE M 9
THAT IS NOT OPERATIONAL BUT HAS MET THE FOLLOWING REQUIREMENTS: 10

(I) FOR A BEHIND –THE–METER SYSTEM , THE DEVELOPER OF 11
THE SYSTEM OR THE ELIGIBLE CUSTOMER–GENERATOR HAS: 12

1. SUBMITTED A COM PLETE INTERCONNECTIO N 13
APPLICATION, AS DETERMINED BY THE ELECTRIC COMPANY, IN ACCORDANCE WITH 14
THE COMMISSION’S SMALL GENERATOR INTERCONNECTIONS STANDARDS; AND 15

2. PAID TO THE ELECTRIC COMPANY ANY REQUIRED 16
INTERCONNECTION APPLICATION FEES; 17

(II) FOR A SYSTEM THAT WILL ENGAGE IN METER AGGREGATION 18
UNDER § 7–306.3 OF THIS SUBTITLE, THE DEVELOPER OF THE SYSTEM OR ELIGIBLE 19
CUSTOMER–GENERATOR HAS: 20

1. RETURNED TO THE ELEC TRIC COMPANY AN 21
EXECUTED INTERCONNEC TION AGREEMENT SIGNE D BY THE DEVELOPER O R 22
ELIGIBLE CUSTOMER–GENERATOR; 23

2. PAID THE INITIAL DEP OSIT REQUIRED UNDER THE 24
INTERCONNECTION AGREEMENT; 25

3. PROVIDED THE ELECTRI C COMPANY PROOF OF S ITE 26
CONTROL; AND 27

4. PROVIDED THE ELECTRIC COMPANY WITH EVIDENCE 28
OF ONE OF THE FOLLOWING: 29

A. AN A PPLICATION FOR AT LE AST ONE REQUIRED 30
PERMIT IF THE SYSTEM IS EXEMPT FROM THE R EQUIREMENTS OF § 7–207 OR § 31
7–207.4 OF THIS TITLE; 32
HOUSE BILL 1195 11

B. RECEIPT OF A DETERMI NATION FROM A PUBLIC 1
UTILITY LAW JUDGE OR THE COMMISSION THAT AN AP PLICATION FOR A 2
CERTIFICATE OF PUBLIC CONVENIENCE A ND NECESSITY UNDER § 7–207 OF THIS 3
TITLE IS COMPLETE; OR 4

C. RECEIPT OF ACHIEVEME NT OF A MILESTONE 5
ASSOCIATED WITH AN APPLICATION FOR A DISTRIBUTED GENERATION CERTIFICATE 6
OF PUBLIC CONVENIENCE AND NECESSITY UNDER § 7–207.4 OF THIS TITLE; AND 7

(III) FOR A COMMUNITY SOLA R ENERGY GENERATING SYSTEM, 8
THE DEVELOPER OF THE SYSTEM HAS: 9

1. RETURNED TO THE ELEC TRIC COMPANY AN 10
EXECUTED INTERCONNECTION AGREEMENT SIGNED BY THE DEVELOPER; 11

2. PAID THE INITIAL DEP OSIT REQUIRED UNDER THE 12
INTERCONNECTION AGREEMENT; 13

3. PROVIDED THE ELECTRI C COMPANY PROOF OF S ITE 14
CONTROL; 15

4. PROVIDED THE ELECTRIC COMPANY WITH EVIDENCE 16
OF ONE OF THE FOLLOWING: 17

A. AN APPLICATION FOR A T LEAST ONE REQUIRED 18
PERMIT IF THE SYSTEM IS EXEMPT FROM THE REQUIREMENTS OF § 7–207 OR § 19
7–207.4 OF THIS TITLE; 20

B. RECEIPT OF A DETERMI NATION FROM A PUBLIC 21
UTILITY LAW JUDGE OR THE COMMISSION THAT AN AP PLICATION FOR A 22
CERTIFICATE OF PUBLI C CONVENIENCE AND NE CESSITY UNDER § 7–207 OF THIS 23
TITLE IS COMPLETE; OR 24

C. RECEIPT OF ACHIEVEME NT OF A MILESTONE 25
ASSOCIATED WITH AN APPLICATION FOR A DISTRIBUTED GENERATION CERTIFICATE 26
OF PUBLIC CONVENIENCE AND NECESSITY UNDER § 7–207.4 OF THIS TITLE; AND 27

5. SUBMITTED TO THE ELE CTRIC COMPANY THE 28
SUBSCRIBER ORGANIZAT ION NUMBER ASSOCIATED WITH THE LOCATION OF THE 29
PROPOSED SYSTEM AS EVIDENCE OF THE COMMISSION’S AUTHORIZATION FOR THE 30
SYSTEM TO PARTICIPATE IN THE COMMUNITY SOLAR ENERGY GENERATING SYSTEM 31
PROGRAM. 32
12 HOUSE BILL 1195

(3) (I) IF AN ELECTRIC COMPAN Y HAS NOT ISSUED AN 1
INTERCONNECTION AGREEMENT OR DEPOSIT INVOICE FOR A QUALIFIED SYSTEM 2
WITHIN THE TIME FRAME ESTABLISHED BY THE COMMISSION UNDER THIS SECTION, 3
THE DEVELOPER OF THE QUALIFIED SYSTEM MAY, IN LIEU OF THE REQUIREMENTS 4
UNDER PARAGRAPH (2)(II) AND (III) OF THIS SUBSECTION , PAY TO THE ELECTRIC 5
COMPANY A REFUNDABLE CASH DEPOSIT OF $25 PER KILOWATT OF ALTERNATING 6
CURRENT GENERATION CAPACITY. 7

(II) A QUALIFIED SYSTEM FOR WHICH A CASH DEPOSIT HAS 8
BEEN PAID UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL AUTOMATICALLY 9
RECEIVE A CAPACITY RESERVATION FROM THE ELECTRIC CO MPANY ON 10
COMPLETION OF MEETIN G THE REQUIREMENTS I N PARAGRAPH (2) OF THIS 11
SUBSECTION. 12

(III) AN ELECTRIC COMPANY SHALL: 13

1. ON REQUEST BY THE DE VELOPER OF A QUALIFI ED 14
SYSTEM, REFUND A DEPOSIT PAID UNDER THIS PARAGRAPH; AND 15

2. RETAIN THE RESERVED CAPACITY FOR THE 16
QUALIFIED SYSTEM ONL Y IF , WHEN THE DEVELOPER O F THE QUALIFIED SYST EM 17
HAS REQUESTED A REFUND, THE DEVELOPER HAS SATISFIED: 18

A. ALL THE REQUIREMENTS IN PARAGRAPH (2)(II) OF 19
THIS SUBSECTION IF T HE QUALIFIED SYSTEM WIL L BE USED IN METER 20
AGGREGATION UNDER § 7–306.3 OF THIS SUBTITLE; OR 21

B. ALL THE REQUIREMENTS IN PARAGRAPH (2)(III) OF 22
THIS SUBSECTION IF T HE QUALIFIED SYSTEM IS A COMMUNITY SOLAR ENERGY 23
GENERATING SYSTEM. 24

(4) AN ELECTRIC COMPANY SHALL NOTIFY THE DEV ELOPER OF A 25
QUALIFIED SYSTEM AND THE COMMISSION WHEN THE Q UALIFIED SYSTEM HAS 26
RECEIVED A CAPACITY RESERVATION. 27

(5) RESERVED CAPACITY ASS OCIATED WITH A CAPAC ITY 28
RESERVATION SHALL COUNT TOWARD THE STATE WIDE LIMIT UNDER SUB SECTION 29
(D)(2) OF THIS SECTION AS O F THE DATE AND TIME THE REQUIREMENTS UND ER 30
PARAGRAPH (2) OR (3) OF THIS SUBSECTION ARE SATISFIED, INCLUDING QUALIFIED 31
SYSTEMS THAT SATISFI ED THE REQUIREMENTS UNDER PARAGRAPH (2) OR (3) OF 32
THIS SUBSECTION BEFO RE JULY 1, 2027, BUT WERE NOT YET OPERATIONAL ON 33
THAT DATE. 34
HOUSE BILL 1195 13

(6) A CAPACITY RESERVATION SHALL BE CALCULATED AS: 1

(I) FOR A QUALIFIED SYST EM THAT IS A BEHIND –THE–METER 2
SYSTEM ASSOCIATED WI TH AN ELIGIBLE CUSTO MER–GENERATOR UNDER THIS 3
SECTION, THE ALTERNATING CURRENT GENERATING CAPACITY OF THE SYSTEM AS 4
CONTAINED IN THE INT ERCONNECTION APPLICATION CONSIDERED COMP LETE BY 5
THE ELECTRIC COMPANY; 6

(II) FOR A QUALIFIED SYST EM THAT WILL ENGAGE IN METER 7
AGGREGATION UNDER § 7–306.3 OF THIS SUBTITLE , THE ALTERNATING CURR ENT 8
GENERATING CAPACITY OF THE SYSTEM AS CONTAINED IN THE INTERCONNECTION 9
AGREEMENT EXECUTED B Y THE DEVELOPER OF T HE SYSTEM OR ELIGIBL E 10
CUSTOMER–GENERATOR; AND 11

(III) FOR A QUALIFIED SYST EM THAT IS A COMMUNI TY SOLAR 12
ENERGY GENERATING SY STEM, THE ALTERNATING CURR ENT GEN ERATING 13
CAPACITY OF THE SYST EM AS CONTAINED IN T HE INTERCONNECTION AGREEMENT 14
EXECUTED BY THE DEVELOPER OF THE SYSTEM OR SUBSCRIBER ORGANIZATION. 15

(7) ON OR BEFORE APRIL 1, 2027, THE COMMISSION SHALL 16
ESTABLISH, BY ORDER OR REGULATION: 17

(I) A METHOD FOR ELECTRIC COMPANIES J OINTLY TO TRACK 18
AND AGGREGATE CAPACI TY RESERVATIONS AND OPERATIONAL QUALIFIE D 19
SYSTEMS TO COUNT PRO GRESS TOWARD REACHIN G THE STATEWIDE CAP UNDER 20
SUBSECTION (D)(1) OF THIS SECTION; 21

(II) CONDITIONS UNDER WHICH A CAPACITY RESERVATION MAY 22
BE MODIFIED, WITHDRAWN, OR CANCELED, AND THE EFFECT OF TH AT ACTION ON 23
CAPACITY ACCOUNTING UNDER SUBSECTION (D) OF THIS SECTION; 24

(III) WHETHER AND UNDER WH AT CONDITIONS A CAPA CITY 25
RESERVATION MAY BE A SSIGNED OR TRANSFERRED, INCLUDING PROTECTIONS TO 26
PRESERVE THE FIRST–COME, FIRST–SERVED CHARACTER OF THE PROGRAM; 27

(IV) A WAITLIST FOR QUALI FIED SYSTEMS THAT MA Y RECEIVE 28
CAPACITY IF PRECEDIN G PROJECTS ARE WITHD RAWN OR CANCELED OR HAVE A 29
REDUCTION IN GENERATING CAPACITY; 30

(V) A UNIFORM DEADLINE B Y WHICH AN ELECTRIC COMPANY 31
SHALL PROVIDE THE DE VELOPER OF A QUALIFI ED SYSTEM WITH AN 32
14 HOUSE BILL 1195

INTERCONNECTION AGRE EMENT AFTER THE DEVE LOPER SUBMITS AN 1
INTERCONNECTION APPLICATION TO THE ELECTRIC COMPANY; AND 2

(VI) UNIFORM STANDARDS FO R INTER CONNECTION UPGRADE 3
DEPOSITS, INCLUDING: 4

1. THE AMOUNT OF DEPOSIT REQUIRED; AND 5

2. DEADLINES BY WHICH A N ELECTRIC COMPANY M UST 6
DELIVER AN INVOICE AND WHEN DEPOSIT PAYMENTS ARE DUE. 7

(K) ON OR BEFORE OCTOBER 1, 2026, AND AT LEAST ONCE A MONTH 8
THEREAFTER, THE COMMISSION SHALL MAIN TAIN AND PUBLISH OR REQUIRE 9
ELECTRIC COMPANIES J OINTLY TO MAINTAIN A ND PUBLISH A STATEWI DE NET 10
ENERGY METERING CAPACITY TRACKER THAT, AT A MINIMUM, IDENTIFIES: 11

(1) THE TOTAL STATEWIDE NAMEPLATE GENERATING CAPACITY OF 12
OPERATIONAL PROJECTS ENGAGING IN NET ENERGY METERING; 13

(2) THE REMAINING CAPACI TY AVAILABLE BEFORE THE STATEWIDE 14
LIMIT UNDER SUBSECTION (D) IS REACHED; AND 15

(3) BEGINNING JULY 1, 2027: 16

(I) RESERVED CAPACITY CO UNTED TOWARD THE STA TEWIDE 17
LIMIT UNDER SUBSECTION (D) OF THIS SECTION; AND 18

(II) A LIST OF QUALIFIED SYSTEMS WITH RESERVED CAPACITY, 19
INCLUDING THE ORDER IN WHICH EACH QUALIF IED SYSTEM OBTAINED RESERVED 20
CAPACITY AND ANY DEA DLINES BY WHICH THE QUALIFIED SYSTEM MUST BECOME 21
OPERATIONAL. 22

(L) (1) ON OR BEFORE OCTOBER 1, 2026, THE COMMISSION SHALL 23
INITIATE A PUBLIC PR OCEEDING AND STAKEHO LDER PROCESS TO DEVE LOP THE 24
SUNRISE PROGRAM FOR A DELIVERY DATE OF JULY 1, 2027. 25

(2) ON OR BEFORE JULY 1, 2027, THE COMMISSION, BY REGULATION 26
OR ORDER, SHALL ADOPT A SUNRISE PROGRAM THAT: 27

(I) ESTABLISHES A MECHAN ISM FOR COMPENSATION OF 28
ELECTRICITY EXPORTED TO THE ELECTRIC DIST RIBUTION SYSTEM BY Q UALIFIED 29
SYSTEMS; 30

HOUSE BILL 1195 15

(II) INCLUDES IN ELECTRIC COMPANY TARIFFS FOR QUALIFIED 1
SYSTEMS COMPENSATION FOR EXPORTED ELECTRICITY THAT , AT A MINIMUM , 2
PROVIDES: 3

1. BASELINE COMPENSATION EQUAL TO THE STANDARD 4
OFFER SERVICE RATES OF THE ELECTRIC COMP ANY, INCLUDING THE ENERGY 5
VALUE, CAPACITY VALUE, AND TRANSMISSION VALUE; 6

2. DEMAND REDUCTION –INDUCED PRICE EFFECT S ON 7
ENERGY AND CAPACITY PRICES AND CROSS–MARKET PRICE REDUCTIONS; 8

3. AVOIDED DISTRIBUTION COSTS; 9

4. AVOIDED ANCILLARY SE RVICES AND VOLTAGE 10
STABILIZATION COSTS; 11

5. RELIABILITY BENEFITS; 12

6. NONEMBEDDED EMISSIONS; AND 13

7. ANY OTHER CATEGO RY OF BENEFITS APPRO VED BY 14
THE COMMISSION; AND 15

(III) ACCOUNTS FOR NET EXC ESS GENERATION IN TH E SAME 16
MANNER AS REQUIRED FOR A NET ENERGY METERED FACILITY UNDER SUBSECTION 17
(F) OF THIS SECTION. 18

(3) IN ESTABLISHING THE C OMPENSATION VALUE UN DER 19
PARAGRAPH (2)(II)1 OF THIS SUBSECTION , THE COMMISSION MAY ESTABL ISH 20
DIFFERENTIATED VALUE S BASED ON FACTORS T HE COMMISSION FINDS 21
REASONABLY RELATED T O ELECTRIC DISTRIBUT ION SYSTEM VALUE AND 22
LOCATIONS, INCLUDING TIME OF GE NERATION AND WHETHER THE QUALIFIED 23
SYSTEM INCLUDES CO–LOCATED ENERGY STORAGE. 24

(4) EACH ELECTRIC COMPANY SHALL IMPLEMENT THE SUNRISE 25
PROGRAM THROUGH THE F OLLOWING TARIFFS THAT MUST BE APPROVED B Y THE 26
COMMISSION: 27

(I) AN UPDATED COMMUNITY SOLAR ENERGY GENERAT ING 28
SYSTEM TARIFF UNDER § 7–306.2 OF T HIS SUBTITLE THAT IN CORPORATES THE 29
SUNRISE PROGRAM COMPENSATION METHODOLOGY; AND 30

(II) A NEW TARIFF AVAILABLE TO: 31
16 HOUSE BILL 1195

1. BEHIND–THE–METER QUALIFIED SYST EMS 1
ASSOCIATED WITH AN ELIGIBLE CUSTOMER–GENERATOR UNDER THIS SECTION; 2

2. COMMUNITY SOLAR ENERGY GENERATING SY STEMS 3
UNDER § 7–306.2 OF THIS SUBTITLE; AND 4

3. SYSTEMS THAT ENGAGE IN METER AGGREGATION 5
UNDER § 7–306.3 OF THIS SUBTITLE. 6

(M) (1) IF THE STATEWIDE LIMI T UNDER SUBSECTION (D) OF THIS 7
SECTION IS NOT REACH ED WHEN THE SUNRISE PROGRAM BECOMES AVAILABLE 8
UNDER SUBSECTION (L) OF THIS SECTION , A QUALIFIED SYSTEM T HAT WOULD 9
OTHERWISE QUALIFY TO PARTICIPATE IN NET E NERGY METERING ON OR AFTER 10
JULY 1, 2027, MAY ELECT TO PARTICIPATE IN EITHER: 11

(I) THE NET ENERGY METER ING PROGRAM UNDER 12
SUBSECTION (F) OF THIS SECTION; OR 13

(II) THE SUNRISE PROGRAM UNDER SUBSECTION (L) OF THIS 14
SECTION. 15

(2) WHEN THE STATEWIDE LI MIT UNDER SUBSECTION (D) OF THIS 16
SECTION IS REACHED: 17

(I) THE COMMISSION SHALL PROHIBIT ELECTRIC COMPANIES 18
FROM ACCEPTING CAPACITY RESERVATIONS FROM QUALIFIED SYS TEMS THAT DID 19
NOT HOLD A CAPACITY RESERVATION WHEN THE STATEWIDE LIMIT WAS REACHED; 20
AND 21

(II) THE SUNRISE PROGRAM SHALL REMAIN AVAILABLE TO 22
QUALIFIED SYSTEMS TH AT DID NOT HOLD A CA PACITY RESERVATION W HEN THE 23
STATEWIDE LIMIT WAS REACHED. 24

[(j)] (N) On or before November 1 of each year, the Commission shall report to 25
the General Assembly, in accordance with § 2–1257 of the State Government Article, on the 26
status of the net ENERGY metering program OR THE SUNRISE PROGRAM under this 27
section, including: 28

(1) the amount of capacity of electric generating facilities owned and 29
operated by eligible customer–generators in the State by type of energy resource; 30

HOUSE BILL 1195 17

(2) based on the need to encourage a diversification of the St ate’s energy 1
resource mix to ensure reliability, whether the rated generating capacity limit in subsection 2
(d) of this section should be altered; [and] 3

(3) THE AMOUNT OF RATED GENERATING CAPACITY COUNTED 4
TOWARD THE STATEWIDE LIMIT UNDER SUBSECTION (D)(2) OF THIS SECTION; 5

(4) IF APPLICABLE, THE STATUS OF THE COMMISSION’S PROCEEDING 6
AND STAKEHOLDER PROC ESS TO ESTABLISH THE SUNRISE PROGRAM UNDER 7
SUBSECTION (L) OF THIS SECTION, INCLUDING KEY DATES, FILINGS, AND ACTIONS 8
TAKEN DURING THE PRECEDING YEAR; AND 9

[(3)] (5) other pertinent information. 10

7–306.2. 11

(a) (1) In this section the following words have the meanings indicated. 12

(2) (i) “Agrivoltaics” means the simultaneous use of areas of land: 13

1. that are maintained in agricultural use in accordance with 14
COMAR 18.02.03 or the Maryland Assessment Procedures Manual; and 15

2. for both solar power generation and: 16

A. raising grains, fruits, herbs, melons, mushrooms, nuts, 17
seeds, tobacco, or vegetables; 18

B. raising poultry, including chickens and turkeys, for meat 19
or egg production; 20

C. dairy production, such as the raising of milking cows; 21

D. raising livestock, including cattle, sheep, goats, or pigs; 22

E. horse boarding, breeding, or training; 23

F. turf farming; 24

G. raising ornamental shrubs, plants, or flowers, including 25
aquatic plants; 26

H. aquaculture; 27

I. silviculture; or 28

18 HOUSE BILL 1195

J. any other activity recognized as an agricultural activity 1
under COMAR 18.02.03 or the Maryland Assessment Procedures Manual. 2

(ii) “Agrivoltaics” does not include the simultaneous use of areas of 3
land for both solar power generation and: 4

1. apiaries; or 5

2. pollinator habitat. 6

(3) “Baseline annual usage” means: 7

(i) a subscriber’s accumulated electricity use in k ilowatt–hours for 8
the 12 months before the subscriber’s most recent subscription; or 9

(ii) for a subscriber that does not have a record of 12 months of 10
electricity use at the time of the subscriber’s most recent subscription, an estimate of the 11
subscriber’s accumulated 12 months of electricity use in kilowatt –hours, determined in a 12
manner the Commission approves. 13

(4) “Community solar energy generating system” means a solar energy 14
system that: 15

(i) is connected to the electric distribution system serving the State; 16

(ii) is located in the same electric service territory as its subscribers; 17

(iii) is attached to the electric meter of a subscriber or is a separate 18
facility with its own electric meter; 19

(iv) credits its generated electricity, o r the value of its generated 20
electricity, to the bills of the subscribers to that system through virtual net energy 21
metering; 22

(v) has at least two subscribers but no limit to the maximum number 23
of subscribers; 24

(vi) does not have subscriptions larger than 200 kilowatts 25
constituting more than 60% of its kilowatt–hour output; 26

(vii) has a generating capacity that does not exceed 5 megawatts as 27
measured by the alternating current rating of the system’s inverter; 28

(viii) may be owned by any person; and 29

(ix) with respect to community solar energy generating systems 30
constructed under the Program, [serves at least 40% of its kilowatt –hour output to LMI 31
HOUSE BILL 1195 19

subscribers] unless the solar energy system is wholly owned by the subscribers to the solar 1
energy system, EITHER: 2

1. SERVES AT LEAST 40% OF ITS KILOWATT –HOUR 3
OUTPUT TO LMI SUBSCRIBERS: 4

A. THROUGH A SUBSCRIBER ORGANIZATION OR 5
SUBSCRIPTION COORDINATOR; OR 6

B. BY ENROLLMENT FACILI TATED BY THE OFFICE OF 7
HOME ENERGY PROGRAMS OR A LOCAL ADMINISTERING AGENCY UNDER 8
SUBSECTION (O) OF THIS SECTION; OR 9

2. DEDICATES OUTPUT IN ACCORDANCE WITH 10
SUBSECTION (P) OF THIS SECTION. 11

(5) “Consolidated billing” means a payment mechanism that requires an 12
electric company to, at the request of a subscriber organization or subscription coordinator: 13

(i) include the monthly subscription charge of a subscriber 14
organization or subscription coordinator on the monthly bills rendered by the electric 15
company for electric service and supply to subscribers; and 16

(ii) remit payment for those charges to the subscriber organization 17
or subscription coordinator. 18

(6) “Critical area” has the meaning stated in § 8 –1802 of the Natural 19
Resources Article. 20

(7) “DESIGNATED LMI CUSTOMER” MEANS AN ELIGIBLE 21
HOUSEHOLD THAT IS: 22

(I) ENROLLED IN THE PROGRAM IN ACCORDANCE WITH 23
SUBSECTION (O) OF THIS SECTION; AND 24

(II) 1. LOW–INCOME; 25

2. MODERATE–INCOME; OR 26

3. LOCATED IN A CENSUS TRACT THAT IS: 27

A. AN OVERBURDENED COMMUNITY; AND 28

B. AN UNDERSERVED COMMUNITY. 29
20 HOUSE BILL 1195

(8) “ELIGIBLE HOUSEHOLD ” MEANS A RESIDENTIAL ELECTRIC 1
CUSTOMER THAT THE OFFICE OF HOME ENERGY PROGRAMS, A LOCAL 2
ADMINISTERING AGENCY , A SUBSCRIPTION COORD INATOR, OR A SUBSCRIBER 3
ORGANIZATION DETERMINES MEETS THE ELIGIBILITY REQUIREM ENTS UNDER 4
SUBSECTIONS (O) OR (P) OF THIS SECTION. 5

[(7)] (9) “LMI subscriber” means a subscriber that: 6

(i) is low–income; 7

(ii) is moderate–income; or 8

(iii) resides in a census tract that is: 9

1. an overburdened community; and 10

2. an underserved community. 11

(10) “LOCAL ADMINISTERING AGENCY” MEANS A LOCAL ENTITY THAT 12
ADMINISTERS OR ASSISTS IN THE ADMINISTERING OF PROGRAMS OF THE OFFICE OF 13
HOME ENERGY PROGRAMS, AS DESIGNATED BY THE OFFICE. 14

[(8)] (11) “Low–income” means: 15

(i) having an annual household income that is at or below 200% of 16
the federal poverty level; or 17

(ii) being certified as eligible for any federal, State, or local 18
assistance program that limits participation to househol ds whose income is at or below 19
200% of the federal poverty level. 20

[(9)] (12) “Moderate–income” means having an annual household income 21
that is at or below 80% of the median income for Maryland. 22

(13) “OFFICE OF HOME ENERGY PROGRAMS” OR “OFFICE” MEANS 23
THE OFFICE OF HOME ENERGY PROGRAMS ESTABLISHED UNDER § 24
5–5A–09.1 OF THE HUMAN SERVICES ARTICLE. 25

[(10)] (14) “Overburdened community” has the meaning stated in § 1 –701 26
of the Environment Article. 27

[(11)] (15) “Pilot program” means the program establis hed under this 28
section before July 1, 2023, and effective until the start of the Program established under 29
subsection (d)(20) of this section. 30
HOUSE BILL 1195 21

[(12)] (16) “Program” means the Community Solar Energy Generating 1
Systems Program. 2

[(13)] (17) “Queue” means: 3

(i) the pilot program queue an electric company is required to 4
maintain under COMAR 20.62.03.04; and 5

(ii) a queue an electric company may be required to maintain under 6
the Program. 7

[(14)] (18) “Subscriber” means a retail customer of an electric company that: 8

(i) holds a subscription to a community solar energy generating 9
system; and 10

(ii) has identified one or more individual meters or accounts to which 11
the subscription shall be attributed. 12

[(15)] (19) “Subscriber organization” means: 13

(i) a person that owns or operates a community solar energy 14
generating system; or 15

(ii) the collective group of subscribers of a community solar energy 16
generating system. 17

[(16)] (20) “Subscription” means the portion of the electricity gene rated by 18
a community solar energy generating system that is credited to a subscriber. 19

[(17)] (21) “Subscription coordinator” means a person that: 20

(i) markets community solar energy generating systems or 21
otherwise provides services related to communi ty solar energy generating systems under 22
its own brand name; 23

(ii) performs any administrative action to allocate subscriptions, 24
connect subscribers with community solar energy generating systems, or enroll customers 25
in the Program; or 26

(iii) manages interactions between a subscriber organization and an 27
electric company or electricity supplier relating to subscribers. 28

[(18)] (22) “Underserved community” has the meaning stated in § 1 –701 of 29
the Environment Article. 30
22 HOUSE BILL 1195

[(19)] (23) “Unsubscribed energy” means any community solar energy 1
generating system output in kilowatt–hours that is not allocated to any subscriber. 2

[(20)] (24) “Virtual net energy metering” means measurement of the 3
difference between the kilowatt–hours or value of electricity that is supplied by an electric 4
company and the kilowatt –hours or value of electricity attributable to a subscription to a 5
community solar energy generating system and fed back to the electric grid over the 6
subscriber’s billing period, as calculated under the tariffs established under subsections 7
(e)(2), (f)(2), and (g)(2) of this section. 8

(O) (1) (I) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM MAY 9
SATISFY ALL OR PART OF THE LMI SUBSCRIBER PARTICIPATION REQUIREMENT 10
UNDER SUBSECTION (A)(4)(IX)1 OF THIS SEC TION THROUGH ENROLLM ENT OF 11
ELIGIBLE HOUSEHOLDS IN THE PROGRAM IN ACCORDANCE WITH THIS SUBSECTION. 12

(II) ENROLLMENT UNDER SUBP ARAGRAPH (I) OF THIS 13
PARAGRAPH SHALL BE F ACILITATED BY THE OFFICE OR A LOCAL ADM INISTERING 14
AGENCY. 15

(2) THE OFFICE OR A LOCAL ADMINISTERING AGENCY SHALL 16
DESIGNATE ONE OR MOR E SUBSCRIPTION COORD INATORS OR SUBSCRIBE R 17
ORGANIZATIONS PER CO MMUNITY SOLAR ENERGY GENERATING SYSTEM TO 18
SUPPORT ENROLLMENT , COMMUNICATIONS, AND ONGOING SUBSCRIP TION 19
MANAGEMENT UNDER THIS SUBSECTION. 20

(3) THE OFFICE OR A LOCAL ADM INISTERING AGENCY SH ALL 21
IDENTIFY, BY ELECTRIC COMPANY SERVICE TERRITORY , ELIGIBLE HOUSEHOLDS 22
FOR ENROLLMENT UNDER THIS SUBSECTION. 23

(4) THE OFFICE OR A LOCAL ADM INISTERING AGENCY MA Y 24
PRIORITIZE ELIGIBLE HOUSEHOLDS FOR ENROL LMENT UNDER THIS SUBSECTION 25
BASED ON HOUSEHOLD NEED, INCLUDING PRIORITIZING BY: 26

(I) BENEFIT LEVEL, PRIORITY TIERS, OR SIMILAR NEED–BASED 27
CATEGORIZATION BY THE OFFICE; OR 28

(II) DURATION OF PARTICIP ATION IN ASSISTANCE PROGRAMS 29
ADMINISTERED BY THE OFFICE. 30

(5) THE OFFICE OR A LOCAL ADMINISTERING AGENCY MAY: 31

HOUSE BILL 1195 23

(I) INITIALLY LIMIT ENRO LLMENT UNDER THIS SU BSECTION 1
TO ELIGIBLE HOUSEHOL DS PARTICIPATING IN ASSISTANCE PROGRAMS 2
ADMINISTERED BY THE OFFICE; OR 3

(II) EXPAND ELIGIBILITY T O ADDITIONAL CATEGOR IES OF 4
INCOME–QUALIFIED CUSTOMERS , INCLUDING HOUSEHOLDS PARTICIPATING IN 5
OTHER MEANS –TESTED PUBLIC BENEFI T PROGRAMS , IN ACCORDANCE WITH 6
GUIDELINES ISSUED BY THE OFFICE. 7

(6) BEFORE ENROLLMENT , THE OFFICE, A LOCAL ADMINISTERIN G 8
AGENCY, A SUBSCRIPTION COORD INATOR, OR A SUBSCRIBER ORGA NIZATION 9
DESIGNATED UNDER PAR AGRAPH (2) OF THIS SUBSECTION S HALL SEND AN 10
OPT–OUT NOTICE TO EACH E LIGIBLE HOUSEHOLD SE LECTED FOR ENROLLMEN T 11
UNDER THIS SUBSECTION THAT: 12

(I) STATES THAT THE HOUSEHOLD WILL RECEIVE COMMUNITY 13
SOLAR BILL CREDITS THAT REDUCE THE HOUSEHOLD’S ELECTRIC BILL; 14

(II) DESCRIBES THE DISCOU NT AND KEY TERMS REQ UIRED 15
UNDER THIS SUBSECTION; AND 16

(III) PROVIDES A CLEAR METHOD FOR OPTING OUT. 17

(7) IF AN ELIGIBLE HOUSEHOLD DOES NOT OPT OUT WITHIN 45 DAYS 18
OF TRANSMITTAL OF TH E NOTICE REQUIRED UN DER PARAGRAPH (6) OF THIS 19
SUBSECTION, THE SUBSCRIPTION COO RDINATOR OR SUBSCRIB ER ORGANIZATION 20
DESIGNATED UNDER PARAGRAPH (2) OF THIS SUBSECTION MAY REQUEST THAT THE 21
ELECTRIC COMPANY ENROLL THE HOUSEHOLD AS A DESIGNATED LMI CUSTOMER 22
UNDER THE PROGRAM. 23

(8) AN ELECTRIC COMPANY SHALL APPLY BILL CREDITS UNDER THIS 24
SUBSECTION IN ACCORD ANCE WITH COMMISSION–APPROVED TARIFFS AT THE 25
DIRECTION OF THE SUBSCRIPTION COORDINATOR OR SUBSCRIBER ORGANIZATION 26
DESIGNATED UNDER PARAGRAPH (2) OF THIS SUBSECTION. 27

(9) A DESIGNATED LMI CUSTOMER SHALL RECEI VE GUARANTEED 28
ELECTRIC BILL SAVINGS OF 20% OF THE VALUE OF THE BILL CREDITS APPLIED TO 29
THE LMI CUSTOMER. 30

(10) AN ENROLLMENT UNDER THIS SUBSECTION MAY NOT INCLUDE: 31

(I) AN ENROLLMENT FEE; OR 32

24 HOUSE BILL 1195

(II) A TERMINATION FEE. 1

(11) AN ELIGIBLE HOUSEHOLD MAY NOT BE REQUIRED TO EXECUTE A 2
SUBSCRIBER AGREEMENT OR CONTRACT DISCLOSURE FORM FOR AN ENROLLMENT 3
UNDER THIS SUBSECTION. 4

(12) A SUBSCRIPTION COORDINATOR OR SUBSCRIBER ORGANIZATION 5
DESIGNATED UNDER PAR AGRAPH (2) OF THIS SUBSECTION S HALL PAY AN 6
ACQUISITION FEE OF $50 TO THE OFFICE OR THE LOCAL A DMINISTERING AGENCY 7
FOR EACH DESIGNATED LMI CUSTOMER ENROLLED UNDER THIS SUBSECTION. 8

(13) THE OFFICE OR A LOCAL ADM INISTERING AGENCY MA Y 9
CONTRACT WITH A SUBS CRIPTION COORDINATOR OR SUBSCRIBER ORGANI ZATION 10
TO CARRY OUT THE REQUIREMENTS UNDER THIS SUBSECTION. 11

(P) (1) A COMMUNITY SOLAR ENER GY GENERATING SYSTEM MAY 12
DEDICATE 8% OF THE KILOWA TT–HOUR OUTPUT OF THE C OMMUNITY SOLAR 13
ENERGY GENERATING SY STEM FOR FREE APPLIC ATION BY THE OFFICE OR THE 14
MARYLAND ENERGY ADMINISTRATION TO ELIGIBLE HOUSEHOLDS THAT ARE: 15

(I) IDENTIFIED IN ACCORD ANCE WITH THIS SUBSE CTION FOR 16
ENROLLMENT IN THE PROGRAM; AND 17

(II) 1. LOW–INCOME; 18

2. MODERATE–INCOME; OR 19

3. LOCATED IN A CENSUS TRACT THAT IS: 20

A. AN OVERBURDENED COMMUNITY; AND 21

B. AN UNDERSERVED COMMUNITY. 22

(2) THE OFFICE OR THE MARYLAND ENERGY ADMINISTRATION 23
SHALL: 24

(I) IDENTIFY ELIGIBLE HOUSEHOLDS FOR ENROLLMENT IN 25
THE PROGRAM IN ACCORDANCE WITH THIS SUBSECTION; AND 26

(II) ALLOCATE A DEDICATED BLOCK OF CAPACITY AM ONG 27
ELIGIBLE HOUSEHOLDS IDENTIFIED UNDER THIS SUBSECTION. 28

HOUSE BILL 1195 25

(3) AN ELECTRIC COMPANY S HALL APPLY THE BILL CREDITS 1
ASSOCIATED WITH THE DEDICATED BLOCK OF CAPACITY TO ELIGIBLE HOUSEHOLDS 2
BASED ON ALLOCATION INSTRUCTIONS PROVIDED BY THE OFFICE, THE MARYLAND 3
ENERGY ADMINISTRATION, OR THE SUBSCRIPTION COORDINATOR OR SUBSCRIBER 4
ORGANIZATION DESIGNATED UNDER PARAGRAPH (7) OF THIS SUBSECTION. 5

(4) THE OFFICE MAY REALLOCATE CAPACITY BLOCK AMOUN TS 6
DURING THE YEAR TO A CCOUNT FOR CHANGES I N HOUSEHOLD STATUS , ACCOUNT 7
CLOSURES, RELOCATIONS, OR OTHER EVENTS, IN ACCORDANCE WITH COMMISSION 8
REGULATIONS. 9

(5) AN ELIGIBLE HOUSEHOLD MAY NOT BE REQUIRED TO EXECUTE A 10
SUBSCRIBER AGREEMENT OR CONTRACT DISCLOSURE FORM FOR AN ENROLLMENT 11
UNDER THIS SUBSECTION. 12

(6) A SUBSCRIPTION COORDINATOR OR SUBSCRIBER ORGANIZATION 13
MAY CONTINUE TO ENRO LL OTHER SUBSCRIBERS FOR THE PORTION OF T HE 14
COMMUNITY SOLAR ENERGY GENERATIN G SYSTEM’S OUTPUT NOT DEDICAT ED TO 15
ELIGIBLE HOUSEHOLDS IN ACCORDANCE WITH THIS SUBSECTION. 16

(7) THE OFFICE OR THE MARYLAND ENERGY ADMINISTRATION MAY 17
CONTRACT WITH A SUBS CRIPTION COORDINATOR OR SUBSCRIBER ORGANI ZATION 18
TO CARRY OUT THE REQUIREMENTS UNDER THIS SUBSECTION. 19

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2026. 21