Mar 26 - The Daily Record (Baltimore)

Maryland could become one of the nation's leaders in solar energy promotion if a bill pending in the General Assembly passes.

A Senate panel has approved SB 595, legislation to require the state's electric suppliers to include a percentage of solar energy in the portfolio of power they sell to retail customers. The state already has a renewable energy portfolio requirement, but not a specific requirement for solar.

Passage of the bill would follow in the footsteps of several other states, and advocates believe it would make solar power systems more affordable, thus encouraging more homeowners and businesses to install them.

"It really would be one of the strongest solar energy bills in the country," said Gary Skulnik, executive director and president of the Silver Spring-based Clean Energy Partnership, an advocacy group devoted to promoting renewable energy. "It would put Maryland in the top tier of states promoting solar."

The bill would essentially require utilities to either procure enough solar power to meet the standard, which would increase incrementally between 2008 and 2022, or pay a compliance fee to the state. Homeowners or businesses that install solar power systems would own the energy generated by those systems, and would be able to sell credits representing that energy to the utilities.

Maryland already has a solar energy grant program, but advocates believe homeowners and businesses need more incentives to purchase the costly equipment. Enabling those who install the systems to sell the credits to utilities helps alleviate the cost of the systems.

Sen. Rob Garagiola, D-Montgomery, is the bill's chief sponsor and said by the time the requirement is fully phased in, the amount of solar energy produced would be larger than the output of some of the state's power plants. Garagiola and other supporters explained that the solar systems installed to help meet the requirements would be generating energy during peak electricity-consumption hours, such as in the middle of a hot summer day, when costs are higher.

"In five or six years all ratepayers are going to see their energy costs be mitigated because we're going to have a critical mass of solar," Garagiola said. "If this bill passes, it's going to open the flood gates to promote solar. But very powerful interests are against it."

Indeed, the state's utilities showed up to testify against the bill, arguing it would increase the cost of energy for consumers, a persuasive argument when some Marylanders are in the middle of a large rate increase.

Opponents to the bill argue that there is not enough solar energy currently being produced to meet the requirements, thus making an already expensive resource - renewable energy - even more costly. Whether companies pay for the credits or pay the compliance fee, the costs would trickle down to customers.

"Solar is very expensive. We continue to pass bills that raise consumer rates, and that's of some concern," said Sen. E.J. Pipkin, R-Eastern Shore, one of five Finance Committee members that voted against the bill earlier this week. The committee only narrowly passed the bill with six senators supporting it.

The Office of the People's Counsel, which represents Maryland consumers, supports the bill.

In addition to the environmental benefits of using more solar power and the potential long-term cost benefits, advocates tout the economic development benefits of the legislation.

"We've got huge solar assets here, and this is going to keep them here," Garagiola said, referring to the BP Solar manufacturing facility in Frederick and SunEdison, the country's largest provider of commercial solar services, headquartered in Beltsville.

Bryson Popham, a lobbyist representing BP Solar, said the bill would create the extra incentive needed to encourage more people to buy solar-generating systems.

"I think it's historic in the respect that it will encourage the creation of a power plant without putting a shovel in the ground or building a smokestack," Popham said.

(c) 2007 The Daily Record (Baltimore). Provided by ProQuest Information and Learning. All rights Reserved.

Solar Bill Would Make Md. A National Leader