Discover how Maryland's generous solar incentives and strategic policies can drive significant energy savings for your business.
Maryland is currently offering some of the most attractive solar incentives in the United States, making it an ideal time for businesses to consider solar energy projects. With the state increasing its Renewable Portfolio Standard (RPS) target to 50% by 2030, Maryland utilities are now required to purchase Solar Renewable Energy Credits (SRECs) from solar power producers. This legislative push for renewable energy is driving generous solar incentives for companies to adopt solar energy.
Additionally, Senate Bill 783 ("The Brighter Tomorrow Act"), passed in April 2024, temporarily increases SREC incentives by a 1.5x multiplier. To take full advantage of these incentives, solar projects must be completed and energized by January 1, 2028. This combination of state and federal incentives, including the Federal ITC (Investment tax credit) which covers 30%-60% of project costs and currently proposed for an accelerated phaseout by Congress, makes Maryland a golden opportunity for solar energy investments right now.
Switching to solar energy is not just environmentally responsible, but also financially savvy. Maryland offers full retail net metering, which means that any surplus energy your solar system generates and exports to the grid is credited at the same rate as your retail energy cost. This can significantly reduce your energy bills.
Moreover, the sale of SRECs can provide additional revenue. For example, a 50,000 sq ft roof supporting a 500 kilowatt solar array producing 600,000 kWh annually can earn around $30,000 from SRECs in the first year alone, with continued earnings over the system's 25+ year lifespan. This financial benefit, combined with reduced operating costs and protection against escalating utility rates, makes solar a highly attractive option for businesses in Maryland.
Maryland's Renewable Portfolio Standard (RPS) requires utilities to source a specified percentage of their energy from renewable sources, increasing from 25% by 2020 to 50% by 2030. To comply, utilities must purchase and retire SRECs, which represent the environmental attributes of 1 megawatt-hour of solar energy.
RECs have significant monetary value and can be traded or sold to meet compliance obligations. This system not only incentivizes the production of solar energy but also helps to lower the overall cost of deploying renewable energy technologies by providing a steady revenue stream for solar power producers.
Many solar financing companies offer flexible financing options to make solar energy accessible to businesses of all sizes. The most popular option is the Power Purchase Agreement (PPA), which allows large energy users to simply pay a set rate lower than their current electricity cost without any capital investment. This can generate savings of 10% to 40%, depending on usage and utility rates. The solar financing company owns and maintains the system, ensuring optimal performance over a 20-25 year period, which simplifies the long term value proposition to the building owner.
For companies with available capital, purchasing a solar system can provide an excellent return on investment. Purchased systems usually pay for themselves in 3-5 years and can offer free energy for 20-22 years after breakeven. Additionally, companies can directly benefit from the Federal Investment Tax Credit and enjoy long-term savings. OnSwitch also offers leasing options for certain buildings, providing monthly payments for roof space utilization.
OnSwitch stands out as a premier partner for solar projects, especially for businesses in the manufacturing sector. With over 20 years of experience and more than $1 billion in solar projects developed, OnSwitch has the expertise to deliver high-quality solar solutions. Our proprietary SkyQuote technology offers accurate solar designs, contract-ready proposals, and detailed cost savings analysis, making the evaluation process straightforward and efficient.
We have a proven track record in installing solar systems for various commercial buildings, including retail chains, manufacturing facilities, and logistics centers. Named a Top Solar Contractor in 2023 by Solar Power World, OnSwitch is committed to providing sustainable, cost-effective energy solutions tailored to your business needs.
The fastest and most accurate way to find out if your commercial location is a good prospect for solar is to request a custom SkyQuote from OnSwitch. Just submit your commercial address on our website and we will design a system layout, PPA Option (Power Purchase Agreement), and a Purchase option specific to your building. This usually takes a matter of hours for most locations.
If you have more than one location you'd like to consider for solar, we can quote multiple sites and create a SkyPlanner. This is an online portfolio where you and your team can review and compare multiple project details in one place.
Have questions? Send us a message (info@onswitchenergy.com) and we can setup some time to discuss your building and answer any questions you may have.
#solarfaster