Switching utilities from on-grid power to solar energy remains a good opportunity for homes and businesses in Maryland. As prices from major utility providers continue to increase, the upfront costs of switching to solar energy become less of a cost and more of an investment.
However, many Maryland homeowners and commercial building owners need the guidance of professional installers to switch their utilities without unnecessary confusion. In this blog, we’ll review permitting requirements and procedures to help Maryland home and business owners avoid delays and costs when switching to solar power.
What Solar Permits are Required in Maryland?
Multiple agencies can set utility permitting requirements, which can make the process confusing. However, solar permitting can generally be broken down into three categories:
- City permit requirements
- County building and electrical permit requirements
- Interconnection agreements and certificates of completion
City permits are not always required, but even when they are, local installers are more likely to know the requirements in their jurisdiction, including county building codes, inspection timelines, city regulations, and more.
Note: The Authority Having Jurisdiction (AHJ) in your local county or municipality will review the permits required to meet local requirements based on building, fire, electrical, and other codes.
What Is the Interconnection Agreement?
The interconnection agreement is another important step in switching from on-grid utilities to solar arrays. The process will likely follow these general steps:
- Since the solar installation will likely connect to the grid, the utility provider will need to confirm certain factors to make sure the system is safe and up to code.
- After doing so, the utility company will provide its conditions to approve system connection, which may include an upgrade fee for commercial installations.
- After the system is installed, the utility provider will test its operations based on standards established in the interconnection agreement.
- If the system passes, they will issue a Certification of Completion, verifying that the system can connect to the grid, provided it remains compliant.
Establishing an interconnection agreement allows the array owner to send excess power to the grid. This is integral to maximizing any solar investment, since Maryland has an active SREC market.
What Is the SREC Market and How Should New Owners Prepare?
Solar renewable energy credits (SRECs) are certificates that the owners of solar arrays can sell on dedicated markets to recoup costs. Only a few states have dedicated solar markets, including Maryland. The value of the credits fluctuates, but it is supported by the Renewable Portfolio Standard (RPS), which requires utility providers to meet specific energy standards.
For homes and businesses, this simply means there will always be a demand for SRECs to help utility providers meet their quotas. Property owners who want to sell SRECs must register their system before switching. An SREC aggregator can register the credits so long as you have the provider’s Certificate of Completion to certify that the array meets regulatory standards.
Visit the Maryland Public Service Commission and the PJM Environmental Information Services websites to learn more about certification and find the appropriate forms.
Did You Know?
Home and business owners switching from on-grid power to solar power can use SRECs only if they own the system. This means that if the array is purchased through a solar lease or a special arrangement known as a power purchase agreement, the installer will retain ownership of the array and its benefits, including the SRECs.
How a Local Solar Company Can Help
Local solar companies know Maryland’s regulations and permitting requirements because they work with them every day. National chains may not know how the process works, which can make the transition less seamless and potentially disrupt benefits or business operations.
Additionally, the installation site requires careful planning to maximize the value of the new array. Sunlight access, shade conditions, spacing, roof orientation, panel materials, and more can impact how much power the array generates and how quickly the owner can reach their break-even point.
The goal of working with a local solar company is to make the permitting and site planning processes as transparent and stress-free as possible. These companies help clients understand the essential steps and documents required to switch utilities, avoid common delays in inspection timelines and document approvals, and handle the whole process each step of the way.
Switch Your Home or Business to Solar Power Without Stress
At Energy Select, our team of local solar installers provides assessments and instant estimates to help home and business owners in Maryland transition from on-grid power to solar. Our goal is to help property owners assemble the documents they need and avoid common mistakes with solar transitions, such as mishandling permit requirements.
Contact our team and schedule a solar consultation today to learn how to manage permits, utility approvals, and site plans for your new solar investment.