Governor Hogan Signs Clean Energy Act, Increasing MD Renewable Portfolio Standards (RPS) Price Beginning October 2019
The Maryland Clean Energy Jobs Act will become law effective October 1st, 2019. Governor Hogan declined to sign or veto the Act by today’s deadline. Contracts of any duration signed prior to October 1st will remain grandfathered under the previous RPS requirements. Grandfathered agreements will avoid the new Act’s increases to the RPS requirements for both Solar and Tier 1 RECs unrelated to offshore wind.
These new RPS requirements will be loaded into our pricing beginning October 1st. Prior to the announcement, MD Solar RECs were trading $60/REC with an expectation of passage, but we continue to monitor any additional price movement this morning. The Maryland Bill will push the solar requirement to 14.5% and the overall renewable requirement to 50% by 2030. For the longer time horizon, the Governor is supportive of a 100% Clean Energy goal by 2040.