In the final days of Maryland’s 2025 legislative session, lawmakers passed an omnibus energy package that will increase buildout for both renewable energy and gas projects.
Maryland’s senate passed a sweeping package of energy polices after a heavily debated legislative session. The final drafts, which are awaiting Gov. Wes Moore’s signature, were shaped by push and pulls over the state’s mounting energy demands, rising electric rates, and concerns for Maryland’s climate future.
The Renewable Energy Certainty Act (HB 1036/SB 931)
At present, Maryland’s Public Service Commission has the sole authority to approve or deny utility-scale solar projects. Farming and conservation groups have pushed back, leading local governments to sidestep around the commission by creating zoning restrictions to halt solar projects.
Zoning and permitting uncertainty should not be the reason those who want to develop solar and battery storage projects won’t come to Maryland, the bill’s sponsor, Sen. Brian Feldman (D), chair of the Senate’s Education, Energy and the Environment Committee, said early in the session.
“We all have to be mindful of creating unnecessary regulatory roadblocks to deploying energy beyond financing,” he said. “The other primary chokepoint in getting renewable energy projects built is siting and permitting.” Local governments, he said, “cannot have de facto veto authority over our attempts at the state level to increase our supply of in-state energy to address our resource adequacy challenges.”
The Renewable Energy Certainty Act works to clamp down on these maneuvers by barring local governments from making zoning changes that prohibit solar and energy storage projects from being developed.
However, after some push and pull throughout the session, legislators added a cap to limit solar development on designated agriculture or forest land to a maximum 5% of the total area. The amended bill will return power to local governments in making decisions over solar projects once more than 5% of the county’s land of designated priority protection areas have been converted to solar.
Maryland ranks 23rd in the United States for its solar installations, with 2.42 GW of installed capacity, according to Solar Energy Industries Association (SEIA). However, Maryland is hovering just below 7% of its goal to have 14.5% of its energy generated from solar by 2030. The goal is ambitious, but Maryland has also struggled to accelerate solar installations over the past several years after public opposition and county zoning maneuvers halted their development.
Next Generation Energy Act (HB 1035/SB 937)
The Next Generation Energy Act was one of the most prominent and heavily debated bills throughout the session. The bill works toward building more power sources within the state and insulates Maryland’s rate payers from pricing fluctuations caused by pricing markets, which are run by the regional grid operator PJM.
Maryland has historically imported about 40% of its annual electric needs from other states, according to PJM. Since 2018, PJM said Maryland has retired 6,000 MW of resources and added 1,600 MW of new resources. Residents pay 18.15 cents per kWh, compared to the national average of 16.26 per kWh, according to the U.S. Energy Information Administration.
The Next Generation Energy Act works to address these issues, including provisions that could fast-track new gas plants and incentivize new nuclear generation.
When it was introduced, the Next Generation Energy Act called for the state to solicit and fast-track regulatory approval for up to 10 new power plants. Environmental and clean energy groups argued this ultimately meant more gas plants would be built and undermine the state’s climate goals.
Leah Meredith, the director of state affairs for SEIA’s Mid-Atlantic region, gave testimony, recommending to amend the bills to incorporate language from another bill, HB 938. This would establish a competitive procurement program for front-of-the-meter, transmission-connected storage with contracted capacity revenue, she said, “thus ensuring that storage assets become operational in this decade and start generating energy cost-savings to Marylanders.”
While the heavily amended bill ultimately incorporated some of HB 938’s language to build more energy storage facilities, it also contained most of the original provisions in place. Notably, it added an amendment requiring state regulators to approve four zero-emissions energy projects for every “emissions-emitting” energy project.
Despite the framework to build out new energy storage, the final bill wasn’t a complete win for climate advocates.
“Battery storage can be deployed quickly, help address peak load demands, and complement the development of clean energy resources, like solar and wind power,” Maryland Sierra Club said in a statement following the session. “The promotion of new-gas fired power generation is a mistake that takes us in the wrong direction,” the Sierra Club said.
The bill also gives the Department of Housing and Community Development the ability to issue loans, in addition to grants, for specified energy conservation and renewable energy projects under a program required by the Climate Solutions Now Act.
Among other notable components of the Next Generation Energy Act are data center reforms, an end to subsidies for trash incineration and utility regulations to lower bills for ratepayers.
If Gov. Moore signs off on the bills, they will go into effect July, 1 2025.
