Energy Incentive Programs, Maryland
Updated December 2011
Maryland utilities budgeted more than $115 million in 2010 across their various electric and gas programs (including those directed at residential and low-income customers) to promote customer energy efficiency, a dramatic increase from the $6 million budget in 2008 and $77 million in 2009.
What public-purpose-funded energy efficiency programs are available in my state?
Maryland's electricity restructuring law, signed in 1999, mandated the creation of a Universal Service Fund that provides bill assistance and weatherization for low-income customers. Currently, no public-purpose-funded energy efficiency programs are available to federal customers.
What utility energy efficiency programs are available to me?
The EmPOWER Maryland program, created in 2008, requires utilities to develop energy-saving programs to decrease electricity consumption.
BGE's Smart Energy Savers Program offers a variety of financial incentives and technical services:
Incentives are available for lighting, HVAC systems, variable frequency drives (VFDs), commercial refrigeration and kitchen equipment for both new construction/renovation and retrofit projects. Incentives cover up to 50% of the total cost of retrofit projects or 75% of the incremental cost of new construction measures. A custom incentive program is also offered.
Retrocommissioning of existing buildings is supported, with BGE providing up to 75% of the cost, up to $15,000 per project.
For small energy users (less than 60 kW peak), the Small Business Lighting Solutions program offers technical support and up to 80% of the total cost of energy-efficient lighting retrofit projects.
PEPCO and Delmarva Power now offer a variety of efficiency programs to commercial and industrial (C&I) customers in Maryland:
Prescriptive incentives (Delmarva customers click here) are available for lighting, HVAC, vending machine controls, and variable frequency drives. Pre-approval is required for most projects.
Custom incentives (Delmarva customers click here) are available for more complex projects or projects that do not qualify for a prescriptive incentive. For these projects, contact PEPCO before commencing any work.
The Energy Savings for New Construction (Delmarva customers click here) program offers incentives of up to $20,000 (or 50% of cost) for enhanced commissioning (ECx) of new buildings that are at least 100,000 sq ft. To be eligible, new construction developers must decide to pursue ECx during the design phase and work with an approved ECx Trade Ally.
The Energy Savings for Existing Buildings (Delmarva customers click here) program provides up to $30,000 (or 50% of cost) for retro-commissioning (RCx) for electrically intensive buildings that are at least two years old and 75,000 sq ft. A commitment to spend at least $15,000 on retro-commissioning follow-up is also required. An approved RCx Trade Ally will assess the building and work with the building manager to implement the RCx plan. Buildings that have already started a RCx project may still be eligible for incentives from PEPCO.
PEPCO and Delmarva provide incentives for Operations & Maintenance Training (Delmarva customers click here) that focuses on improving building electricity performance.
Technical assistance is available from Trade Allies (Delmarva customers click here https://cienergyefficiency.delmarva.com/Findally.aspx). For custom, more complex projects contact a Trade Ally before getting started.
Customers intending to take advantage of these incentives should be aware that most require pre-approval to obtain the utility rebate. In addition, some measures under the Custom Incentive Program require a post-installation review by a utility representative.
Allegheny Power's Watt Watchers program includes a set of rebates for C&I customers for lighting efficiency improvements, high-efficiency HVAC retrofits, and variable frequency drives. Allegheny also offers a custom rebate program for specialized projects with energy savings of at least 100,000 kWh per year. Custom rebates are capped at $250,000 per project or 50% of total project cost.
The Southern Maryland Electric Cooperative offers a set of prescriptive rebates as well as custom rebates for more complex energy efficiency projects. Both kinds of rebates typically cover up to 50% of total cost for retrofits and 75% of the incremental cost for new construction. To participate, contact a SMECO Trade Ally. SMECO also offers a set of Energy Optimization Services, such as energy audits and equipment analysis.
What load management/demand response options are available to me?
The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs. Two specific programs may be attractive to federal facilities in the PJM footprint:
The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Customers start by submitting load reduction bids through their curtailment service provider (any existing PJM member, such as their utility, a third-party electricity supplier, or a specialty CSP) of at least 100 kW into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (the day-ahead "locational marginal price," or LMP). Reductions are figured based on a customer baseline load (CBL), which is essentially the average load levels for the same hours in four of the facility's previous non-responding days. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.
PJM's emergency "capacity" program allows demand resources to participate in PJM's Reliability Pricing Model (RPM) forward capacity market via a CSP. Participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD), or to a specific kW level (known as firm service level, FSL), within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. Penalties for non-compliance are substantial. Remuneration is based on the results of the annual RPM capacity auctions in various PJM regions. Remuneration levels for the 2012-13 and 2013-14 PJM years (which begin June 1, 2012 and June 1, 2013, respectively) range from $50,000-90,000 per MW for most Maryland customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
In both programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation consistent with local environmental regulations and permits. Allegheny Power offers the Economic Generation Buy-Back Rider, which pays customers to voluntarily run onsite generation (3 MW minimum) for two or more hours during periods of high wholesale electricity prices. Payment is based on the difference between the average of the six 30-minute integrated demands preceding the curtailment period and the maximum 30-minute integrated demand during the customer's participation. Under its Rider 24, BGE offers two demand response options to federal customers:
BGE's Capacity Program offers capacity payments in return for reducing demand by at least 100 kW during high demand periods. Load reduction periods, which are limited to ten times per year, are announced two hours in advance and can last up to six hours. There is a penalty for non-performance.
BGE's Energy Program allows customers to reduce demand during high price periods in exchange for payments based on the real-time price of electricity. There is no penalty for non-performance.
BGE's Hourly-Priced Service rate is a real-time pricing program whereby customers pay BGE PJM's locational marginal price plus fixed adders for distribution, administration, etc. This rate is mandatory for customers over 600 kW who do not contract with a competitive electricity supplier.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal customers:
The Maryland Energy Administration offers the Commercial Clean Energy Grant Program, which provides financial incentives for solar PV, solar water heating, geothermal heat pumps and wind turbine systems. Grant amount is based on system size or total cost, depending on the technology. Grant amounts are capped at $50,000 for solar PV, $1,000 for solar water heating, $7,000 for geothermal, and $75,000 for wind systems. ARRA guidelines apply.
Are there energy efficiency programs sponsored by state government?
In 2008, Maryland passed legislation, creating the EmPOWER Maryland initiative and the Strategic Energy Investment Fund, which substantially increased funding for energy efficiency and renewable energy investment in Maryland. For information on these expanding opportunities, check with the Maryland Energy Administration (MEA).
What additional opportunities are available to me?
Federal customers whose utilities have area-wide supply contracts through GSA (e.g., AGL Resources, BGE, Delmarva Power & Light, PEPCO, Allegheny Power, Trigen Baltimore Energy, and Washington Gas Light), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.
PJM (see above in the demand response section) now allows energy efficiency projects to participate in its forward capacity markets, based on its Reliability Pricing Model (RPM). To be eligible, EE projects must reduce load continuously by at least 100 kW during peak summer hours, and not be dispatchable. This load reduction can be bid into PJM's annual (for three years in advance) and "residual" (nearer-term) capacity auctions, and if selected will receive the auction clearing price. Interested customers can participate through energy service companies conducting ESPCs or utilities executing UESCs at their sites.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.