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SB 1022

State Corporation Commission; time frame for completion of certain transmission lines proceedings.

2025 Regular Session Introduced by Travis Hackworth

Allows low- and moderate-income subscribers to join community solar projects outside their territory with equal bill credits; PSC to implement inter-territory crediting.

Passed by indefinitely in Commerce and Labor with letter (15-Y 0-N)
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Bill Summary · SB 1022

SB 1022 — Community Solar Energy Generating Systems — Subscription Eligibility

Status: Enacted (signed by Governor); effective October 1, 2025
Primary sponsor: Senator C. Jackson (Cross‑file: HB 1233)

Purpose / Intent

SB 1022 amends Maryland’s Community Solar Energy Generating Systems Program (Art. — Public Utilities §7‑306.2) to broaden participation by low‑ and moderate‑income (LMI) subscribers. The bill removes the geographic restriction that required subscribers to reside in the same electric service territory as the community solar project for the specific category of LMI subscribers, and it directs the Public Service Commission (PSC) to implement a mechanism to exchange bill credits across service territories.

Key provisions

  • Geographic exception for LMI subscribers:
    • An LMI subscriber may hold a subscription to a community solar energy generating system located in a different electric service territory than where the subscriber resides.
  • Equal bill credit value:
    • An LMI subscriber located in a different service territory must receive the same bill credit value as an LMI subscriber located in the same service territory as the project.
  • PSC rulemaking/implementation:
    • The PSC must, by order or regulation, establish a process for the exchange of community solar bill credits between systems located in different electric service territories.
  • Clarified/expanded LMI definition:
    • “LMI subscriber” is defined to include individuals who are low‑income, moderate‑income, or who reside in a census tract that is an overburdened community or an underserved community (the bill uses OR between overburdened and underserved).
  • Retains existing program elements:
    • The bill leaves in place core program features such as virtual net energy metering, a ≤5 MW system size threshold for community solar projects, and the Program’s requirement that community solar projects constructed under the Program serve at least 40% of output to LMI subscribers (unless wholly owned by subscribers).

Who is affected

  • Beneficiaries:
    • LMI subscribers (low‑ and moderate‑income customers and residents of qualifying census tracts) gain access to a wider pool of community solar projects beyond their utility territory.
    • Renters and customers in underserved/overburdened areas who previously could not subscribe to out‑of‑territory projects.
  • Obligated parties:
    • Public Service Commission — required to create credit‑exchange procedures and implement the change.
    • Electric companies, community solar developers, subscriber organizations, and subscription coordinators — must operationalize inter‑territory crediting under PSC rules.
  • Market impacts:
    • Community solar developers and small solar businesses may see an expanded eligible customer base, potentially encouraging additional project development.

Fiscal and operational impact

  • PSC administrative costs:
    • The Department of Legislative Services’ fiscal analysis indicates PSC special fund expenditures may increase beginning FY2026 if additional staff or new administrative processes are needed; PSC funding generally comes from assessments on regulated utilities.
  • Local government finances:
    • Not expected to be materially affected.
  • Market / small business:
    • Potential meaningful benefit to small solar developers and owners through expanded subscriber pools.

Effective date and implementation

  • The bill takes effect October 1, 2025.
  • PSC must promulgate orders or regulations to create a practical, accountable process for exchanging community solar bill credits across electric service territories so that equal bill credit values can be delivered to out‑of‑territory LMI subscribers.

Short takeaway

SB 1022 removes a geographic barrier for low‑ and moderate‑income participants in Maryland’s community solar program by allowing LMI subscribers to join projects outside their electric service territory, requires equal bill‑credit treatment for those subscribers, and directs the PSC to establish the administrative mechanism to make inter‑territory crediting work.

Compiled from official sources — confirm details with the bill’s official record.

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