Carine Ingabire
Regulatory Analyst
Maryland Adopts Net Crediting for Community Solar Program
Carine Ingabire, Regulatory Analyst
February 18, 2025 – Earlier this month, the Maryland Public Service Commission (PSC) has issued Order No. 91524, officially adopting Net Crediting 1 (NC1) as the consolidated billing methodology for the state's Community Solar Program. This decision marks a significant step forward in simplifying community solar participation and expanding access to affordable electricity, particularly for low- and moderate-income (LMI) subscribers.
Net Crediting streamlines the billing process by consolidating all charges onto a single utility bill. A subscriber's community solar credits are first applied to their subscription fee and then to their existing utility charges. This eliminates the need for separate bills, making it easier for customers to manage their energy expenses and to understand their savings.
This approach offers several key benefits:
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Simplified Billing: Net Crediting simplifies billing by eliminating separate bills – i.e., all charges will appear on the existing utility bill, making it easier to manage and to see cost savings from subscribing to the solar project.
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Predictability: Subscription fees are automatically deducted from earned credits, minimizing out-of-pocket expenses for subscribers and ensuring predictable revenue for solar project owners. This enhances cash flow stability and reduces uncertainty.
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Expanded Access to Clean Energy: By simplifying billing and reducing financial barriers, Net Crediting makes community solar more accessible to all income levels, thereby expanding the reach of solar projects which enables new Megawatt-scale generation financed from private capital.
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Cross-State Implementation Experience: Three of the four utilities participating in the community solar program in Maryland – BG&E, Pepco and Delmarva Power – are affiliates of Exelon, which also owns utilities in New Jersey. As New Jersey has already implemented the NC1 methodology, the shared corporate structure will help utilities leverage their implementation experience and systems across states.
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Favorable Environment for Solar Growth: NC1 aligns Maryland with industry best practices, creating a more stable and predictable market for new project investment. This reduces complexity, lowers costs, and positions projects for greater adaptability to evolving regulations, market conditions, and future incentives.