This program provides funding to Community Solar Subscriber Organizations to offset costs associated with Power Purchase Agreements (PPA) enabling clean energy to be offered to Low-to-Moderate Income (LMI), overburdened, and underserved communities at lower cost.
Donor Name: Maryland Energy Administration
State: Maryland
County: All Counties
Type of Grant: Grant
Deadline: 02/29/2024
Size of the Grant: $100,000 to $500,000
Grant Duration: Grant Duration Not Mentioned
Details:
This Maryland Energy Administration (MEA) incentive program provides funding to partially reimburse Community Solar Subscriber Organizations for added costs associated with making the Community Solar Pilot Program accessible to Maryland’s low-to-moderate income, overburdened, and underserved communities. Solar ownership carries substantial up-front costs that have historically been a barrier to these communities accessing the many benefits of solar technology. One of the most impactful of these benefits is the ability for solar to reduce monthly energy burden. A community solar power purchase agreement (PPA) model, with sufficiently favorable financial terms, can help provide the benefits of solar energy to Maryland’s LMI, overburdened, and underserved communities in a sustainable, scalable manner that maximizes greenhouse gas reduction benefits, and delivers meaningful reduction to energy burden. It also carries no up-front cost to the subscriber, meaning that they receive immediate solar energy benefits once subscribed to a community solar system. This model has been highly popular in past program offerings, and is an important driver in MEA’s mission to promote clean, affordable, reliable energy and energy-related greenhouse gas emission reductions to benefit Marylanders in a just and equitable manner. The grant amount is based upon a net present value (NPV) formula, which takes into account the amount of energy subscribed to LMI households and the cost savings guaranteed over and above that of a specified base case over an assumed 20-year PPA period. A discount rate of 10% is used.
Program Purpose
Providing greater cost savings and expanding access to the Community Solar Pilot Program for Maryland’s LMI, overburdened, and underserved communities.
Funding Information
Approximately $3,000,000 from the Strategic Energy Investment Fund (SEIF). However, this amount may be increased based on the quality and quantity of applications received. Some of the potential additional funding is geographically restricted. Individual grants cannot exceed $500,000 for any given project.
Eligible Applicants
Community solar Subscriber Organizations registered to do business in Maryland, that are registered with the Maryland Public Service Commission (PSC), have a Subscriber Organization number, and are in Good Standing with the Maryland Department of Assessments and Taxation (SDAT). An eligible applicant must propose a project in one of the following categories:
- LMI category (guarantee 10% of energy output to Low Income subscribers and an additional 20% of energy output to Low-or-Moderate Income subscribers), or
- SBO3 category AND guarantee at least 51% of energy output to Low-and Moderate Income subscribers.
For more information, visit MEA.
