In April 2008, the Maryland enacted legislation exempting geothermal and solar energy equipment from the state sales and use tax. Geothermal equipment is defined as "equipment that uses ground loop technology to heat and cool a structure". Solar energy equipment is defined as "equipment that uses solar energy to heat or cool a structure, generate electricity to be used in a structure, or provide hot water for use in a structure".
In November 2007, Maryland enacted legislation creating a sales and use tax "holiday" for certain energy-efficient appliances, beginning in 2011. Under the law, qualifying appliances purchased during a designated period are not subject to the state sales and use tax (6%). The holiday time frame is established as a three-day period running from "the Saturday immediately preceding the third Monday in February through the third Monday in February each year". In 2012, the holiday runs from February 18 to February 20.
Southern Maryland Electric Cooperative's (SMECO) Residential Energy Efficiency Program helps residential customers save energy by providing rebates for home weatherization and the installation of energy efficient equipment. Eligible measures include insulation, system tune-ups, lighting, water heating, proper installation and central heating and cooling. Some rebates vary by size and type of measure employed. Equipment must meet program guidelines listed on the web site above. SMECO also provides a program that provides weatherization services to income qualified households.
Southern Maryland Electric Cooperative's (SMECO) Non-Residential Energy Efficiency Program provides technical assistance and a range of incentives to commercial, industrial, municipal and institutional customers who employ energy efficient measures in new and existing facilities. The program offers prescriptive rebates for specified energy efficiency measures, while custom incentives are offered for applications which are not covered by the prescriptive program.
The Maryland Agricultural and Resource Based Industry Development Corporation (MARBIDCO) offers low interest loans for energy efficiency improvements to farms and rural businesses through the Rural Business Energy Efficiency Improvement Loan Program. The program is designed to facilitate the purchase of equipment or technology that lowers business energy consumption. Applicants must have a credit score of at least 650 without any bankruptcy during the prior seven years in order to qualify for a loan.
Maryland's Residential Clean Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners that install solar water-heating systems or solar-electric (PV) systems. In order to be eligible, the property must be the applicant's primary residence.
The current Solar Energy Grant Program provides incentives as follows (effective for applications received on or after July 1, 2012):
Note: In April 2013 Maryland enacted legislation (H.B. 226) creating a resource carve-out for offshore wind facilities. The carve-out is stated as a maximum percentage of 2.5% of retail electricity sales in 2017 and beyond, with the actual requirements to be determined by the Maryland Public Service Commission (PSC) subject to the 2.5% limitation. The definition of a qualifying offshore wind facility is limited to facilities located on the outer continental shelf between 10 and 30 miles off the cost of Maryland in a U.S. Department of Interior designated leasing zone.
The Public Service Commission is responsible for regulating gas, electric, and water companies in the state. This legislation contains provisions for such companies, addressing planning and siting considerations for electric generation facilities and transmission lines, consumer relations and rate-making, and natural gas supplier licensing. Section 7-501 et seq. Contains provisions for electric industry restructuring, which are aimed to create a competitive electricity supply and electricity supply services market within the state.