Market Brief: Maryland Renewable Energy Standard and Pre-Existing Contracts
August 29, 2019
With the passage of Senate Bill 516, known as the Clean Energy Jobs Act, Maryland now sets a new “super-solar” standard, requiring 14.5% of the electricity consumed to be generated from solar. Additionally, the legislation increases the goal for offshore wind generation from 480 MW to 1,200 MW. The bill becomes law on October 1 and will result in higher costs for commercial customers.
While the final increase is currently unknown, experts estimate costs for commercial customers could go up by as much as 4%. Businesses have a limited time to act before energy prices increase. The legislation includes a grandfathering provision that protects customer contracts throughout the contract service life if signed before October 1.
Contracts signed prior to October 1 will remain grandfathered under the previous RPS requirements. Grandfathered agreements will avoid new increases to the RPS requirements for both Solar and Tier 1 RECs unrelated to offshore wind.
Contact your ENGIE energy expert today to take advantage of the grandfathering period.