Maryland Governor Martin O’Malley has said he will sign into law a new Renewable Portfolio Standard that increases the Alternative Compliance Payments (ACP) due if utilities don’t buy enough SRECs. Higher ACPs support higher SREC prices which in turn encourage more solar development.
While rebate programs have proven unreliable as state budgets are stained, SREC programs have proven to be a stable incentive for solar. New Jersey recently suspended their solar rebate program but has increased their ACP levels and the percentage of solar electricity required three times. Maryland is following suit, increasing the ACP to $400 through 2014 and slowing the pace that they lower ACP.
Compare the old and new Maryland RPS:
| Year | Solar RPS % | Old ACP | New ACP |
|---|---|---|---|
| 2009 | 0.01% | $400 | |
| 2010 | 0.025% | $400 | $400 |
| 2011 | 0.05% | $350 | $400 |
| 2012 | 0.10% | $350 | $400 |
| 2013 | 0.20% | $300 | $400 |
| 2014 | 0.30% | $300 | $400 |
| 2015 | 0.40% | $250 | $350 |
| 2016 | 0.50% | $250 | $350 |
| 2017 | 0.55% | $200 | $200 |
| 2018 | 0.90% | $200 | $200 |
| 2019 | 1.20% | $150 | $150 |
| 2020 | 1.50% | $150 | $150 |
| 2021 | 1.85% | $100 | $100 |
| 2022 | 2.00% | $100 | $100 |
| 2023 | 2.00% | $50 |