Maryland Net Metering Changes 2027: The July 1 Cutoff

Maryland’s current net metering program will close to new customers on July 1, 2027, or earlier if statewide solar capacity reaches 3,000 megawatts. Homes that join after that will go into a successor program that state law says must offer smaller incentives. Systems already on net metering by then remain eligible until they are expanded, repowered or decommissioned. The change comes from Chapter 353 of 2026 (House Bill 1532, known as the Utility RELIEF Act), which the governor approved on May 12, 2026.

If you are weighing rooftop solar in Maryland, the date matters more than the cap. The commission’s latest count, as of June 2025, put the state at about half the cap. Two details are still open: what the successor program will pay, and what you must have done by July 1, 2027 to count as “in.” Our Maryland electricity prices and solar overview covers current Pepco and BGE rates. This article covers the net metering change and what to do now.

What Changes for Maryland Net Metering in 2027?

Under the amended Public Utilities Article § 7-306, utilities make net metering available “on a first–come, first–served basis until the earlier of” two dates:

• the date on which capacity owned and operated by eligible customer-generators “in the State reaches 3,000 megawatts”; or
• July 1, 2027.

A new section, § 7-306.4, creates the successor. The Public Service Commission must approve its framework “on or before February 1, 2027,” and the program must “begin July 1, 2027.” The law requires it to provide incentives for distributed generation “that are less than the incentives provided by the net energy metering program.” The framework must also minimize ratepayer costs “in the short term and in the long term.”

The successor stays open until the old and new programs together reach 6,000 megawatts. That doubles the current 3,000 MW cap.

How Maryland Net Metering Pays Today

The commission’s 2025 report to the legislature explains the current rules. Customers pay only for the energy they use, netted against the energy their system produces, plus the fixed monthly customer charge. The report says “the practical effect of this policy is to allow customers to use the utility grid as if it were battery storage.”

Leftover credits are paid out each year at the end of April for the previous 12 months, unless the customer elects to carry them forward indefinitely. That payout uses only “the generation or commodity portion of the rate,” averaged over the past 12 months. It leaves out the delivery part of the bill.

What it means for a bill: under today’s rules, solar power you send to the grid and use later offsets power you would otherwise buy. Maryland homes paid an average of 21.40 cents per kWh in August 2026, according to the Energy Information Administration (EIA). At that price, every 1,000 kWh netted against your use is worth up to about $214. The average includes fixed charges that netting does not offset, and it is not any one utility’s tariff. The law requires the successor to offer smaller incentives than net metering, but how much smaller is not yet known. That is why solar quotes signed now should show savings under both scenarios.

Who Keeps Today’s Net Metering?

Under § 7-306(d)(5), a customer-generator that “on July 1, 2027, is under a net energy metering contract or tariff” stays eligible “until the earlier of when”:

1. the system is decommissioned under § 7-218(g);
2. the system is modified to increase power sent to the grid by adding “more photovoltaic modules” than when it was first placed in service, or to raise its AC output capacity;
3. the system “enters into a new interconnection agreement”; or
4. the system “is repowered.”

The law defines repowered as replacing “more than 80% of the direct current nameplate capacity” of the system, in one action or a series of actions. Routine equipment repair and maintenance is excluded.

What it means: if you already have solar, you do not need to do anything to keep net metering. Before you add panels, upgrade to a bigger inverter or replace most of your modules, ask your utility in writing whether the work would end your grandfathered status.

What Counts as “In” by July 1, 2027?

This is the open question for anyone shopping now. The statute grandfathers systems “under a net energy metering contract or tariff” on July 1, 2027, but it does not say which step of the interconnection process gets you there. The commission’s proposed regulations in rulemaking RM 56 (posted June 2026) lay out three versions:

The difference can be large. An interconnection application is usually filed before installation, while permission to operate comes only after the system is built and approved by the utility. As of Nov. 14, 2026, we found no final rule. The commission has not said which version it will adopt.

Where the Successor Program Stands

The commission opened Public Conference 78 (PC 78) on May 14, 2026 to design the successor. Its notice told a working group to “file a draft report and framework with the Commission by October 27, 2026.” On Oct. 26, 2026, the commission posted a notice titled “Comment Opportunity and Virtual Hearing on NEM Working Group Report (PC 78).” We could not open that notice, so we cannot report its comment deadline, hearing date or the report’s proposed credit rates.

The law gives the commission until Feb. 1, 2027 to approve the framework.

Will the 3,000 MW Cap Close the Program First?

Probably not. The commission’s 2025 net metering report counted about 1,321 megawatts of net-metered capacity through June 2025. With operational community solar, the total was about 1,537 MW, “representing 51.23% of the cap.” Reaching 3,000 MW by mid-2027 would take about 1,460 MW of new capacity in roughly two years, close to the state’s entire installed base as of 2025. For planning, treat July 1, 2027 as the real deadline.

What Maryland Homeowners Should Do Now

1. If you already have solar: nothing is required. Keep your interconnection paperwork, and check with your utility before expanding or repowering.
2. If you are getting quotes: ask each installer for a written timeline to file your interconnection application, sign the agreement and get permission to operate. Draft version 2 requires permission to operate, which comes after the application and agreement, so plan for that strictest version.
3. Ask for two savings estimates: one under current net metering, and one with a lower export credit. A system that only pays off under today’s rules is a risk if it slips past the date. Our guide to comparing solar quotes line by line shows what to ask for.
4. Size to your use. Leftover credits are paid out at the supply (commodity) rate only, so a system much larger than your use earns less on the surplus. See how the net metering true-up works.
5. Watch the Feb. 1, 2027 decision. Once the successor’s credit rate is known, you can compare the two programs properly. A home battery may matter more under a lower export credit.

Sources and verification

Limitations

The successor program’s credit rate is not known. The commission had not adopted final RM 56 rules or approved a PC 78 framework when we checked on Nov. 14, 2026. We could not open the commission’s Oct. 26 notice or the working group report itself. The state average price includes fixed charges and varies by utility and supplier. This article is not legal or financial advice. Confirm deadlines with your utility and installer before you sign a contract.