Citing strong demand, on August 20, 2010, the Maryland Energy Administration (MEA) in the US state of Maryland announced that it is reducing rates by 80% in its Solar Energy Grant Program. The program will now reimburse homeowners and small businesses USD$500/KW for the costs of installed solar photovoltaic (PV) systems, instead of USD$2,500/KW, maintaining a maximum grant of USD$10,000. The Solar Hot Water grant will now pay 20% of system costs, capped at a maximum of USD$1,500. The new incentive levels will go into effect on August 23, 2010, and MEA officials say that the new rates will not affect the hundreds of applicants waiting for approval. "With the strong rate of incoming applications, MEA has now reserved all of its budgeted ARRA funds for its residential solar grant program", stated the MEA on its website. "Out of a desire to extend our solar and geothermal grant programs beyond this fiscal year to continue reaching as many Marylanders as possible, MEA is announcing an update to the calculation of our Solar PV, Solar Hot Water grants."

Program's success exceeding funding

The MEA says that with grants paid out for 2,000 PV and solar hot water systems in FY 2010, funds are running low in the program, even after additional funding from the American Recovery and Reinvestment Act (ARRA, US President Obama's “stimulus package”) and the Regional Greenhouse gas Initiative. Under the new grant schedule, the MEA says that it anticipates sending out 100 grants per month during fiscal year 2011, or until all funding is exhausted.

Applicants for the program are also eligible for federal tax credits and county incentive programs, as well as solar renewable energy credits through the state's renewable portfolio standard policy, which requires that utilities purchase an increasing amount of power from renewable energy sources.

The Maryland grant program is one of many state programs to run out of funding in the East and Northeast Atlantic regions of the US. These regions have been some of the strongest in the nation for solar demand, which may be due to a high number of affluent and environmentally conscious residents as well as attractive incentive programs. The second cycle of New Jersey's Renewable Energy Incentive Program closed on May 3, 2010, after receiving an entire cycle's worth of applications in just three days. A third cycle will open on September 1, 2010 with incentive levels of USD$750/KW for PV.

2010-08-25| Courtesy: Maryland Energy Administration | solarserver.com © Heindl Server GmbH

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