Maryland - Clean Energy Jobs - SB-516

Published: July 23, 2019

Maryland has set forth an aggressive energy policy requiring 50% of Maryland's electricity to be generated from renewable resources by 2030. This increases the current Renewable Energy Portfolio (RPS) law from 25% to 50% over the next 10 years with steps to reach 100% renewable by 2040. 

Under the provisions of this law, contracts signed prior to October 1, 2019 will not be subject to the increased RPS requirements. For a residential customer, the cost increase is minimal - only about $18/ year. But a commercial customer using 2,500,000 kWh a year could see increases between $5,000 - $10,000 per year. Diversegy works with 35+ suppliers nationwide, and our top suppliers are providing varrying estimates on the potential impact. Our energy advisors work with clients to find the best possible solution for their individual businesses. 

What are your options?

  • Energy Supply Agreements: Reivew pricing for longer-term fixed or index rate products. Retail electricity contracts signed before 10/1/19 are not subject to the increase. Many suppliers are working on products that would allow clients to sign index contracts now and lock in rates later on, with no exit penelties. 
  • Solar: On/Offsite solar installations can help offset your exposure to the current increase (and future increases down the line.)

Estimates we’ve seen so far:

To date we have spoken with a number of suppliers, including (but not limited to): MidAmerican, Engie, Liberty, Constellation, Direct, and NextEra. These suppliers represent a good sample of quality suppliers. Their estimates range from $.75/MWh for the first year (2019/2020) which is questionably low, mid-term term ranges of $2.25 to $3.25/MWh, and the long term impact reaching ~$4/MWh. 

Contact a Diversegy Energy Advisor today to discuss your account in detail. 

Free Analysis