By: Jimmy Shue, Communications Intern
The Maryland Sierra Club is excited to have worked on two pivotal pieces of legislation that advance energy storage in Maryland. On Monday, April 11 the Maryland General Assembly passed Senate Bill 758 and House Bill 733. The former bill establishes tax credits up to 30% of the cost of residential and commercial energy storage systems beginning next year. The latter mandates a study of regulatory reforms and incentives to boost storage deployment.
If Governor Hogan signs SB 758, sponsored by Senator Guy Guzzone and Delegate Kirill Reznik, it would be a first-of-a-kind tax credit - a departure from the mandate strategies implemented by California, Oregon, and Massachusetts. This lighter, faster, and more streamlined approach would serve as a model for other states interested in a variety of policy options. It also allows for a wide range of energy storage technologies, which can spur innovation.
However, this measure is a limited kick-start. The 30% credit would only last five years, from 2018 through the end of 2022, with an annual overall cap of $750,000. Still, the Energy Storage Association testified in favor of the bill, and says that it expects the bill to directly support “more than” 10 megawatt-hours of customer-sited energy storage. This is a relatively modest amount, but enough to get the market moving.
Despite Governor Hogan’s unfortunate veto of the Clean Energy Jobs Act last year, we are hopeful that the bill will be enacted into law with or without a signature since the both bills passed by wide majorities.
Further, Maryland regulators are already preparing to convene a working group on the valuation of distributed energy storage. Delegate Marc Korman and Senator Jim Rosapepe sponsored legislation to conduct a deep study on the possibilities of energy storage and incentive policy working together to achieve a cleaner electric grid. Ultimately, these bills will help Maryland move towards a clean energy economy and improve power grid resiliency.