Community Solar Program–Frequently Asked Questions

Frequently Asked Questions for Consumers/Subscribers

What is community solar?
Unlike solar panels which are installed on the customer’s rooftop and are solely for the use of one household or customer, community solar is shared by two or more utility customers in a utility’s service territory. In Maryland, the community solar program will allow customers to buy a share of the electrical output of the community solar energy generating system. 

How do I participate in a community solar project?
You may subscribe to a community solar project (or even more than one) that is located in the same service territory as your electric utility–whether you get your electricity from the utility or a retail supplier. See your utility’s website for details, or visit the Maryland Energy Administration website to see if there are projects near you. 

What is a subscriber organization?
A subscriber organization is a person or entity that owns or operates a community solar energy generating system; or the collective group of subscribers of a community solar energy generating system. Typical subscriber organizations include:  solar developers, non-profit energy assistance groups, homeowners associations, community organizations, commercial businesses, utilities, retail electricity suppliers, etc., Individual subscribers are customers who buy a share of the electricity generated by a community solar energy generating system and receive a credit for this electricity generation on their utility bill. A subscriber organization can continue to operate a community solar project that was established during the program until September 30, 2044 or 25 years after the organization has been authorized to operate — whichever comes later.

What is a subscription coordinator?

A subscription coordinator is a person or entity that markets community solar energy generating systems or otherwise provides services related to community solar energy generating systems under its own brand name. A subscription coordinator performs any administrative action to allocate subscriptions, connect subscribers with community solar energy generating systems, or enroll customers in the Program. A subscription coordinator also manages interactions between a subscriber organization and an electric company or electricity supplier relating to the subscribers of a community solar project. A subscription coordinator does not own community solar projects, but markets subscriptions to solar projects owned by subscriber organizations.

How can low or moderate income customers benefit from the community solar pilot program?
Community solar energy generating systems constructed under the Program must serve at least 40% of its kilowatt–hour output to low and moderate income subscribers unless the solar energy system is wholly owned by the subscribers to the solar energy system. Furthermore, under the program, a subscriber organization or subscription coordinator is restricted from charging a low-to-moderate income subscriber a subscription rate that is more than 90% of the monetary value of the bill credit on a customer’s utility bill, helping to ensure that these low-to-moderate income subscribers receive 10% savings. When you sign up for community solar, you will have the opportunity to notify your subscriber organization that you are a low or moderate income customer and the subscriber organization will be able to verify your eligibility.

I am a renter – can I still take part in a community solar program?
Yes. Participating in the program does not require you to install solar panels at your residence. You can subscribe to get your energy from a community solar project in your utility’s service territory.

What if I already have rooftop solar – can I still participate?
Yes. You can apply to a subscriber organization as long as all of your subscriptions (community solar and rooftop) do not exceed 200% of your baseline annual energy usage. Subscribed energy in excess of annual use will be paid out to customers at a rate that may be less than the subscribed cost. Customers should choose subscription levels that correspond to their annual use in order to avoid loss of subscription value.

How close to the solar panels do I need to live? What happens if I move?
You only need to live in the service territory served by a community solar project. If you move within that same territory you can transfer your subscription to your new residence. Subject to the terms and conditions of your contract, you may be able to transfer your subscription to another eligible customer.

How do bill credits work for the community solar program?
Bill credits will vary depending on your subscription contract (refer to your contract for specific terms and conditions). You will get a bill credit based on the amount of electricity produced by your share of the project. A utility may choose to apply the kilowatt-hour credit to each subscriber’s bill as either a reduction in kilowatt-hour use OR a dollar credit to the subscriber’s billed amount.

Does this program have consumer protection policies?
As with any business deal, READ YOUR CONTRACT CAREFULLY and make sure you understand and agree with the terms and conditions before you sign. There are a number of consumer protections:

• Subscriber organizations are not allowed to use marketing tactics that are unfair, false, misleading or deceptive.
• Agents may not market door-to-door unless they have had a criminal background check and have been properly trained in local, state and federal laws governing marketing activities.
• In addition, there are minimum requirements for a subscription contract as well as a contract disclosure form that must be presented to every subscriber before a contract is signed. The PSC does not regulate community solar rates.

The specific consumer protections applicable to community solar projects can be found in the Code of Maryland Regulations (COMAR) section 20.62.05. 

Frequently Asked Questions for Developers/Subscriber Organizations

Who can participate as a subscriber organization?
We expect solar developers, non-profit energy assistance groups, homeowners associations, community organizations, commercial businesses, utilities, retail electricity suppliers, etc., to consider applying to participate in the community solar program as subscriber organizations.

How do subscriber organizations apply to participate?
A subscriber organization (which can be a utility, retail electricity supplier, solar developer, etc.) must first be granted admission to the program by the Commission–the application form can be found here. After receiving an ID number, the subscriber organization must then apply to the electric company serving the location of the project. The capacity of an individual project must not exceed 5 MW. Individual projects over 2 MWs require a CPCN. Under §7–207, projects co-locating with a total cumulative capacity over 14 MWs on one location also require a CPCN.  

Links to utility community solar programs and interconnection applications are available below:

• BGE Community Solar Pilot Program
• Delmarva Power & Light Green Power Connection
• Potomac Edison Company (MD) Community Solar
• Potomac Electric Power Company (Pepco) Green Power Connection

Can existing solar generating systems be part of the program?
A subscriber organization may apply to convert all or a portion of an existing solar generating system of 500 kw or less to the community solar program—if that system began operating before May 15, 2016. 

Are there restrictions on where community solar projects can be located?
Under this program, multiple community solar projects owned by the same entity or affiliate cannot be located on the same or adjacent properties unless they are:

• On the rooftops of buildings;
• In areas that are zoned for industrial use;
• On brownfields locations and clean fill sites;
• Over parking lots or roadways;
• On multilevel parking structures;
• On or over transportation or public rights-of -way;
• At airports;
• On land that:
  • (a) Was previously zoned for industrial use or is ecologically compromised; and
  • (b) Is not targeted for mitigation or restoration; or
• In any location if the combined capacity of all community solar energy generating systems on the same or adjacent parcel does not exceed 10 megawatts and:
  • (a) At least 75% of the aggregate capacity of the co-located community solar energy generating system serves LMI subscribers;
  • (b) For a site without a community solar energy generating system installed before the start of the Program, all of the community solar energy generating systems installed after the start of the Program are used for agrivoltaics; or
  • (c) For a site with a community solar energy generating system installed before the start of the Program, each new community solar energy generating system installed after the start of the Program is used for agrivoltaics.

What are the consumer protection policies that subscriber organizations must follow?
Subscriber organizations are not allowed to use marketing tactics that are unfair, false, misleading or deceptive. Agents may not market door-to-door unless they have had a criminal background check and have been properly trained in local, state and federal laws governing marketing activities. In addition, there are minimum requirements for a subscription contract as well as a contract disclosure form that must be presented to every subscriber before a contract is signed. The PSC does not regulate community solar rates. The specific consumer protections applicable to community solar projects can be found in the Code of Maryland Regulations (COMAR) section 20.62.05.