Funds for the Legislative Energy Relief Refund are being distributed from compliance fees collected from electric utilities in Maryland.
Maryland’s renewable energy standards, outlined in the state’s Renewable Portfolio Standard (RPS), require electricity suppliers to obtain an increasing share of their energy from renewable sources each year. In 2025, suppliers must meet a 33% renewable energy target, with goals rising to 50% by 2030 and 100% clean energy by 2040. Qualifying sources include solar, wind, small-scale hydroelectric, geothermal, certain forms of biomass, and methane captured from landfills or wastewater treatment. The standards also include a solar carve-out—5.5% of total energy sales in 2025 must come specifically from solar power. Utilities that do not meet these requirements must pay alternative compliance fees, which are directed into the state’s Strategic Energy Investment Fund.
This fund is the source of the $200 million used for the Legislative Energy Relief Refund, a one-time credit authorized by the Maryland General Assembly through the 2025 Next Generation Energy Act.