Community Solar Energy Generating Systems - Prohibited Locations - Adjacent Parcels

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0265*

SENATE BILL 265
C5, M5 6lr1879

By: Senator Brooks
Introduced and read first time: January 19, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

AN ACT concerning 1

Community Solar Energy Generating Systems – Prohibited Locations – Adjacent 2
Parcels 3

FOR the purpose of repealing certain prohibitions on the location of a community solar 4
energy generating system based on the combined installed capacity of all community 5
solar energy generating systems on adjacent parcels of land; and generally relating 6
to community solar energy generating systems. 7

BY repealing and reenacting, without amendments, 8
Article – Public Utilities 9
Section 7–306.2(a)(1), (4), and (7) and (d)(1) 10
Annotated Code of Maryland 11
(2025 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – Public Utilities 14
Section 7–306.2(d)(13) 15
Annotated Code of Maryland 16
(2025 Replacement Volume and 2025 Supplement) 17

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19

Article – Public Utilities 20

7–306.2. 21

(a) (1) In this section the following words have the meanings indicated. 22

(4) “Community solar energy generating system” means a solar energy 23
system that: 24
2 SENATE BILL 265

(i) is connected to the electric distribution system serving the State; 1

(ii) is located in the same electric service territory as its subscribers; 2

(iii) is attached to the electric meter of a subscriber or is a separate 3
facility with its own electric meter; 4

(iv) credits its generated electricity, or the value of its generated 5
electricity, to the bills of the subscribers to that system through virtual net energy 6
metering; 7

(v) has at least two subscribers but no limit to the maximum number 8
of subscribers; 9

(vi) does not have subscriptions larger than 200 kilowatts 10
constituting more than 60% of its kilowatt–hour output; 11

(vii) has a generating capac ity that does not exceed 5 megawatts as 12
measured by the alternating current rating of the system’s inverter; 13

(viii) may be owned by any person; and 14

(ix) with respect to community solar energy generating systems 15
constructed under the Program, serves at least 40% of its kilowatt –hour output to LMI 16
subscribers unless the solar energy system is wholly owned by the subscribers to the solar 17
energy system. 18

(7) “LMI subscriber” means a subscriber that: 19

(i) is low–income; 20

(ii) is moderate–income; or 21

(iii) resides in a census tract that is: 22

1. an overburdened community; and 23

2. an underserved community. 24

(d) (1) (i) The Commission shall establish and maintain a Community 25
Solar Energy Generating Systems Program. 26

(ii) The structure of the Program is as provided in this subsection. 27

(13) (i) Except as provided in subparagraph (ii) of this paragraph, a 28
community solar energy generating system may not be located on the same [or an adjacent] 29
SENATE BILL 265 3

parcel of land as an existing or proposed community solar energy generating system if the 1
total installed capacity of all community solar energy generating systems on the [same or 2
adjacent] parcel would exceed 5 megawatts. 3

(ii) The prohibition under subparagraph (i) of this paragraph does 4
not apply to projects constructed: 5

1. on the rooftops of buildings; 6

2. in areas that are zoned for industrial use; 7

3. on brownfields locations and clean fill sites; 8

4. over parking lots or roadways; 9

5. on multilevel parking structures; 10

6. on or over transportation or public rights–of–way; 11

7. at airports; 12

8. on land that: 13

A. was previously zoned for industrial use or is ecologically 14
compromised; and 15

B. is not targeted for mitigation or restoration; or 16

9. in any location if the combined capacity of all community 17
solar energy generating systems on the same [or adjacent ] parcel does not exceed 10 18
megawatts and: 19

A. at least 75% of the aggregate capacity of the co –located 20
community solar energy generating systems serves LMI subscribers; 21

B. for a site without a community solar energy generating 22
system installed before the start of the Program under paragraph (20) of this subsection, 23
all of the community solar energy generating systems installed after th e start of the 24
Program are used for agrivoltaics; or 25

C. for a site with a community solar energy generating 26
system installed before the start of the Program under paragraph (20) of this subsection, 27
each new community solar energy generating system ins talled after the start of the 28
Program is used for agrivoltaics. 29

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 30
October 1, 2026. 31