When you install solar panels on your property, Maryland’s net metering program lets you earn bill credits for the excess electricity your system sends back to the grid. The result is a lower monthly utility bill and a faster return on your solar investment.

What Is Net Metering?

Net metering is a billing arrangement between Maryland utility companies and customers who generate their own solar electricity. When your panels produce more power than your home uses during the day, that surplus flows back to the grid. Your utility provider credits your account for each excess kilowatt-hour (kWh), which offsets your bill during nights, cloudy days, or other periods when your system produces less than you consume.

Maryland offers several forms of net metering:

• Standard net metering applies to residential and commercial solar systems connected to the grid on your property.
• Virtual net metering allows renters and others without rooftop access to subscribe to community solar projects and receive bill credits for off-site generation.
• Aggregate net metering in Maryland applies specifically to agricultural facilities, non-profit organizations, and government agencies with multiple meters at the same site.

Maryland’s Net Energy Metering Law

Maryland Code §7-306 governs the program today, and includes key provisions such as:

A note on system size: the 2 MW residential cap applies to standard rooftop installations. The 5 MW limit is specific to community solar energy generating systems (CSEGS). All Maryland utilities that send and receive electricity are required to participate, so eligible customers across the state can access the program.

What Happens to Unused Credits?

Credits roll over month to month, but what happens at year-end depends on which option you choose. By default, any remaining balance is reconciled each April at the average annual commodity electricity rate, which is lower than the retail rate you earn during the year. 

A 2023 state law (SB 143) introduced an alternative that gives customers the option to roll over excess credits indefinitely at full retail value, banking them for future use instead of accepting the lower April payout. This is an opt-in option, so contact your utility after your system goes live to confirm you’re enrolled.

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Benefits of Net Metering for Maryland Homeowners

Financial Benefits

Net metering shrinks your monthly utility bill by offsetting consumption with credits earned from excess generation. Those savings stack on top of available federal and state tax incentives for solar.

Maryland homeowners who install rooftop solar between July 1, 2024 and January 1, 2028 may also qualify for the Brighter Tomorrow Act‘s SREC multiplier. Eligible systems can earn solar renewable energy certificates (SRECs) valued at up to 1.5 times the standard market rate. 

To qualify, the system must be 5 MW or less and located on a rooftop, parking canopy, or brownfield site. The Maryland PSC opened its application portal for the multiplier in January 2025.

According to the Solar Energy Industries Association, only 20% to 40% of solar energy generated by a residential system ever returns to the grid. For most residential systems, that means credits are automatically applied to your utility bill rather than generating RECs you’d sell separately.

Environmental Benefits

Maryland’s Renewable Energy Portfolio Standard requires 52.5% of statewide electricity from renewables by 2030, including a 14.5% solar carve-out. Net metering directly supports that target by encouraging distributed rooftop generation across the state.

The Brighter Tomorrow Act and Why Timing Matters

Governor Wes Moore signed the Brighter Tomorrow Act (SB 783) into law on May 10, 2024. The act created a premium SREC category to accelerate solar adoption in Maryland. Systems that qualify earn certificates with a 1.5x compliance value, meaning electricity suppliers count them at 150% when meeting RPS obligations. That increased demand supports higher SREC prices for qualifying system owners.

The window to qualify closes January 1, 2028, and the first 300 megawatts (MW) AC of systems 20 kW or smaller are eligible. Installing sooner increases the chance your system qualifies before capacity fills.

Pending Changes to Watch in 2026

The Maryland General Assembly is currently considering HB 1532, the Utility RELIEF Act. Among its provisions, the bill would give the Public Service Commission more authority over which facilities remain in the current net metering program and which transition to a new framework. The bill passed the House on March 17, 2026, and is now under Senate review.

The practical takeaway for homeowners considering solar: customers who interconnect under the current program before any changes take effect are typically grandfathered into existing terms. Waiting creates uncertainty about what program terms will apply.

How to Get Started with Net Metering

Installing Solar Panels for Net Metering

Installing solar panels for net metering involves a few key steps before your system can connect to the grid and start earning credits.

• Site assessment. A reputable installer evaluates your roof’s structural integrity, load-bearing capacity, age, and dimensions to determine the right system size and confirm your roof can support an array.
• Permitting. Your installer handles state and local permits required before installation begins.
• Installation. Most residential solar installations take two to three days to complete.
• System inspection. After installation, your installer and the relevant municipality or utility perform a final inspection to confirm everything meets code.

The installer you choose directly affects how smoothly you move through permitting, interconnection, and net metering enrollment. Solar Energy World manages the final inspection and paperwork for solar tax credits and applicable rebates on your behalf.

Installing a Bidirectional Meter

Net metering in Maryland requires a bidirectional meter. This device tracks energy flow in both directions, recording both the electricity you draw from the grid and the surplus you send back. Most utilities install this as part of the interconnection process.

Registering with Your Utility Provider

Once your system is operational, you enroll in your utility’s net metering program. The process varies by utility, so contact your provider directly. You must also register with the Maryland Public Service Commission (PSC), which will issue a Solar Photovoltaic System Certification confirming your system is interconnected and approved.

Commercial customers who want to sell excess RECs must register with PJM Interconnection’s Generator Attribute Trading System (GATS) within 30 days of receiving PSC certification. Each REC represents one megawatt-hour (MWh) of solar generation and can be sold to electricity suppliers to meet RPS compliance requirements.

Understanding Your Bill

Net metering credits apply to your bill each month automatically. Many homeowners use live monitoring services to track production and consumption in real time, which makes it easier to spot trends and confirm your system is performing as expected. Any credits that remain at the end of your 12-month billing cycle are settled in April at the average commodity rate.

Explore Solar Energy Savings in Maryland

Maryland’s net metering program, combined with the Brighter Tomorrow Act SREC multiplier and available tax incentives, gives homeowners multiple financial reasons to go solar now rather than wait. The current net metering terms are favorable, the SREC window is open, and proposed legislation adds uncertainty to what future program terms may look like.

Contact us today to schedule a free solar estimate and find out what your system could earn under Maryland’s current program.