Maryland Legislature Passes HB 1111

April 8, 2025 - Last night, the Maryland legislature passed House Bill 1111 (HB 1111). The legislation is designed to incentivize solar energy development on underutilized or constrained sites, offering lower-cost electricity to ratepayers while preserving farmland.

HB 1111 expands eligibility for incentives under the Small Solar Energy Generating System Incentive Program. The bill specifically targets solar projects located on, or over, water retention ponds, quarries, and brownfields - areas previously or currently designated for industrial use. It also authorizes local governments to offer property tax credits for such nonresidential solar installations. The law takes effect on July 1, 2025.

Key provisions and impacts include:

Expanded Incentive Eligibility:
- Solar projects installed on qualifying water retention ponds or quarries (previously, or currently, used for industrial purposes) are now eligible under the Small Solar Energy Generating System Incentive Program.
- Eligible systems must have capacities between 20 kilowatts (kW) and 5 megawatts (MW) and meet all other program requirements.
- These systems are now qualified to earn certified solar renewable energy credits (SRECs), which count at 150% value toward Maryland’s Renewable Portfolio Standard (RPS) compliance.
Local Property Tax Credit Authorization:
- Counties and municipalities are authorized to grant property tax credits for nonresidential solar systems built on brownfields, industrial-use water retention ponds, or quarries.
- Local governments have discretion over:
  - Amount and duration of the credit.
  - Additional eligibility criteria.
  - Implementation provisions.
Environmental and Land Use Considerations:
- Brownfields include polluted or contaminated former industrial/commercial sites, closed landfills, and mined lands.
- Projects on water bodies or wetlands may require permits from the Maryland Department of the Environment (MDE), especially in nontidal areas, but are deemed feasible with case-by-case review.
Fiscal and Administrative Impacts:
- The state expects minimal fiscal impact. Relevant agencies—including the Public Service Commission (PSC), Maryland Department of the Environment (MDE), and the State Department of Assessments and Taxation (SDAT)—can implement the bill within existing resources.
- For developers, HB 1111 may help reduce operational costs and improve the financial viability of solar projects sited on previously restricted sites or land on which it is difficult to develop projects.

Maryland Legislature Passes HB 1111

April 8, 2025 - Last night, the Maryland legislature passed House Bill 1111 (HB 1111). The legislation is designed to incentivize solar energy development on underutilized or constrained sites, offering lower-cost electricity to ratepayers while preserving farmland.

Key provisions and impacts include:

Expanded Incentive Eligibility:

Solar projects installed on qualifying water retention ponds or quarries (previously, or currently, used for industrial purposes) are now eligible under the Small Solar Energy Generating System Incentive Program.

Eligible systems must have capacities between 20 kilowatts (kW) and 5 megawatts (MW) and meet all other program requirements.

These systems are now qualified to earn certified solar renewable energy credits (SRECs), which count at 150% value toward Maryland’s Renewable Portfolio Standard (RPS) compliance.

Local Property Tax Credit Authorization:

Counties and municipalities are authorized to grant property tax credits for nonresidential solar systems built on brownfields, industrial-use water retention ponds, or quarries.

Local governments have discretion over:

Amount and duration of the credit.

Additional eligibility criteria.

Implementation provisions.

Environmental and Land Use Considerations:

Brownfields include polluted or contaminated former industrial/commercial sites, closed landfills, and mined lands.

Projects on water bodies or wetlands may require permits from the Maryland Department of the Environment (MDE), especially in nontidal areas, but are deemed feasible with case-by-case review.

Fiscal and Administrative Impacts:

The state expects minimal fiscal impact. Relevant agencies—including the Public Service Commission (PSC), Maryland Department of the Environment (MDE), and the State Department of Assessments and Taxation (SDAT)—can implement the bill within existing resources.

For developers, HB 1111 may help reduce operational costs and improve the financial viability of solar projects sited on previously restricted sites or land on which it is difficult to develop projects.