What is Happening to Net Metering in Maryland?
In mid-May 2026, Governor Moore signed the Utility RELIEF Act, which included emergency provisions to prevent the state’s solar industry from hitting a hard cap that would have frozen new installations. Because of a massive surge in commercial and community solar projects sitting in the interconnection queue, the Maryland solar pipeline mathematically breached the state’s 3,000 MW cap. To keep the lights on for the solar industry, the new law bumped the capacity to 6,000 MW.
However, the new legislation mandates the end of the current 1:1 Net Energy Metering (NEM 1.0) program. Starting in 2027, a “successor program” will take its place, slashing the compensation you receive for exporting excess solar power to the grid from the 1:1 retail rate down closer to a wholesale or supply rate.
1:1 Net Metering vs. Wholesale Credits: The Financial Impact
Currently, if you buy electricity from the grid at 16 cents/kWh at night, but you generate excess solar power at noon, the utility credits you 16 cents/kWh. It’s an even trade. Under the upcoming successor program, you will still buy power at night for 16 cents, but your noon-time solar exports might only earn you the wholesale rate—roughly 4 to 6 cents/kWh. Here is how that “buy high, sell low” model impacts different types of solar setups:
Scenario 1: 100% Solar Offset
A homeowner with a 100% offset system generates as much energy over a year as they use. Under 1:1 NEM, their electric bill is essentially zero. Under the new wholesale rules, the math breaks. Because they export massive amounts of energy to the grid during peak daylight hours (earning ~5 cents/kWh) and buy it back at night (costing 16 cents/kWh), their monthly bill will rise significantly despite having a full offset system.
Scenario 2: 50% Solar Offset
With a smaller system, you consume more of the solar power exactly when it’s generated, minimizing what you send to the grid. While the financial penalty isn’t as devastating as the 100% offset scenario, you will still lose massive value on those bright, sunny days when the panels overproduce your immediate household needs.
Scenario 3: 25% Solar Offset
At 25% offset, virtually every drop of solar energy produced is consumed by your house immediately (self-consumption). You rarely export power, meaning the drop in export credit rates barely affects you. However, you’re still relying heavily on expensive utility power for 75% of your needs.
How Battery Storage Alleviates the Wholesale Penalty
The best way to combat the end of 1:1 net metering is by adding a home battery storage system. Instead of selling your excess noon-time power to the grid for pennies, you store it in your battery. When the sun goes down, your house draws from the battery instead of buying expensive grid power. Storage allows you to keep the full retail value of your solar energy by keeping it entirely “behind the meter.”
The Future: Virtual Power Plants (VPPs)
While the loss of NEM 1.0 stings, the rise of Virtual Power Plant (VPP) programs could turn this transition into an opportunity. In states like Texas, homeowners with battery storage can enroll in VPPs, allowing the grid to tap into their stored energy during peak grid emergencies. In exchange, the homeowner receives a lucrative monthly subsidy. As Maryland develops its post-2027 energy framework, a robust VPP program could completely offset the negatives of the weaker NEM policy—making solar-plus-storage the smartest investment on the market.
The Clock is Ticking: Lock in 1:1 NEM Today
Because the new wholesale compensation framework takes effect in 2027, the window to get grandfathered into the highly lucrative 1:1 Net Metering program is closing fast. Don’t wait until the Maryland Public Service Commission finalizes the lower rates. Contact Solar Yoda today to lock in your solar system and secure top-dollar credits for decades to come.
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