Solar Yoda LLC

Will You Qualify for the $ 7,500 MSAP Grant?

The Maryland Solar Access Program (MSAP), established by the Brighter Tomorrow Act, ensures low-to-moderate income (LMI) households access solar energy benefits through a combination of direct financial incentives, strict consumer protections, and mandated economic savings.

Here is a detailed breakdown of how the program ensures successful access and benefits for these households:

1. Removing Financial Barriers

The program is designed to reduce or eliminate the high upfront costs that traditionally prevent LMI households from adopting solar energy.

• Substantial Grant Funding: The program provides a grant of $750 per kilowatt of direct current (kWDC) installed capacity, up to a maximum of $7,500 per household.
• Third-Party Ownership & Assignment of Funds: Recognizing that many LMI households may not have the capital to purchase a system outright, the program allows residents to “assign” the grant payment directly to their solar contractor. This mechanism facilitates Third-Party Ownership (TPO) models, such as leases and Power Purchase Agreements (PPAs), where the contractor installs the system at little to no upfront cost to the resident, provided the resident receives the electricity produced.
• Income Eligibility: To ensure funds reach the intended audience, eligibility is restricted to households with incomes at or below 150% of the Area Median Income. For example, the maximum gross yearly income for a four-person household is capped at $183,375.

2. Mandating Economic Benefits (The “Minimum Benefit” Rule)

The program goes beyond simply providing access; it guarantees that the financial benefits of the solar system are passed on to the consumer rather than absorbed by the contractor.

• Avoidable Rate Calculation: Contractors must demonstrate savings based on the customer’s “current avoidable rate”—the amount the customer would otherwise pay their utility company for electricity.
• Required Savings Thresholds:
  • PPAs: For FY26, a PPA with a 0% annual payment increase (escalator) must offer a first-year rate at least 20% below the customer’s avoidable utility rate. If the PPA includes an annual price increase (capped at 3%), the starting rate must be at least 30% below the avoidable rate.
  • Leases and Loans: Applications for leases or loans must demonstrate that the total costs for the first full year do not exceed an “equivalent maximum offer.” This is calculated using Net Present Value (NPV) to ensure the financial benefit is comparable to the savings offered by a compliant PPA.
• Pass-Through Requirement: The program requires that the solar system owner’s financial metrics remain consistent with and without the MEA award, proving that the grant funds are being used to lower costs for the resident rather than increase profit for the installer.

3. Enforcing Consumer Protections

To prevent predatory practices and ensure long-term success, the program enforces a rigorous Consumer Protection Policy.

• Disclosure Forms: Before signing a contract, customers must be provided with a standardized MSAP Customer Disclosure Form (specific to whether they are leasing, purchasing, or using a PPA). This form clearly lists system costs, savings projections, and terms in plain language.
• Cancellation Rights: Contracts must allow the customer to cancel within 30 days of signing without incurring any costs.
• Warranties and Maintenance: Contractors must provide robust warranties, including a minimum 10-year workmanship warranty, a 25-year manufacturer warranty for solar modules, and a 10-year warranty for inverters.
• Escalation Limits: To prevent costs from spiraling, annual payment increase rates (escalators) in leases and PPAs cannot exceed 3%.

4. Ensuring Quality and Accountability

The program strictly vets the professionals and equipment involved to ensure systems are installed correctly and perform as promised.

• Participating Contractor List: Only contractors approved by the Maryland Energy Administration (MEA) can participate. These contractors must be registered in Maryland, hold necessary licenses (such as Maryland Home Improvement Commission licenses), and have no history of violating wage or safety laws in the last five years.
• Certification Requirements: A North American Board of Certified Energy Practitioners (NABCEP) certified professional must be involved in the design or installation of every funded system.
• Violation Policy: The MEA tracks violations (such as deceptive marketing or high-pressure sales). A third violation results in the contractor’s removal from the program for up to six months.

5. Alternative Pathways for High-Need Households

For households that may require full funding rather than a discount, the program operates alongside the Solar Energy Equity (SEE) Grant Program.

• While a household cannot use both programs, the SEE Program offers grants of up to $25,000 to cover 100% of the design and installation costs for LMI households, typically administered through non-profits or local governments.

---

Analogy: Think of the Maryland Solar Access Program like a subsidized housing voucher, but for energy. Just as a housing voucher covers a portion of rent to make housing affordable, MSAP provides a grant to lower the cost of the solar system. However, the program also acts like a “rent control” authority by strictly regulating the “landlords” (solar contractors): it caps how much they can charge (Minimum Benefit Rule), ensures the building is up to code (NABCEP and Warranty requirements), and gives the tenant the right to break the lease if they were misled (30-day cancellation).