Maryland has opened a state programme that will provide up to $200 million in grants over two years to help build new renewable energy and storage projects, aiming to fill part of the gap left by the end of federal investment tax credits. The Maryland Energy Administration (MEA) issued the funding opportunity announcement for the programme, called Megawatts for Maryland, on October 26, 2026.
How it works
The programme covers part of the cost of building grid-scale renewable generation and energy storage projects. Incentive levels are set through a closed-bid auction, and grants go to the eligible bidders that offer the lowest price per megawatt-hour.
Up to $100 million is available in fiscal year 2027, and another $100 million is expected in fiscal year 2028. The programme was created by the Utility RELIEF Act of 2026, which Governor Wes Moore signed into law earlier this year.
Who can bid
Eligible projects include Tier 1 renewable generation that does not take part in net metering, energy storage either co-located with Tier 1 renewables or standalone, and hybrid projects that combine renewable generation with storage. Developers of these projects can apply.
Timeline
Preliminary applications are due by November 30, 2026. Applicants that pass this first stage may then submit final bids and supporting documents by January 22, 2027. MEA expects to notify winners in spring 2027.
According to Solar Power World, the programme is expected to support hundreds of megawatts of new capacity, with a goal of powering more than 150,000 homes.
Filling the federal gap
The programme was designed to replace part of the investment tax credits that were cut by the One Big Beautiful Bill Act. Without them, many solar and storage projects in the US face higher costs and harder financing.
"This program will tackle rising electricity demand with cleaner, cheaper, in-state energy generation that will drive down costs for the long-term," said Governor Wes Moore. He added that the state is "using every tool at our disposal to bring Marylanders relief as energy costs skyrocket in our region."
Maryland House of Delegates Speaker Joseline A. Peña-Melnyk said: "Maryland families and businesses need reliable electricity at prices they can afford."
Rising demand and costs
Maryland is under pressure from rising electricity demand, including from data centre development. In September, Moore issued an executive order on managing energy costs linked to data centres, and the Utility RELIEF Act also provides $300 million in utility cost relief.
What it means
For the Americas, Maryland shows how states may step in as federal support for clean energy is reduced. A competitive auction that pays the lowest-cost bidders keeps the programme affordable while still bringing new solar and storage onto the grid. Developers with projects in Maryland should prepare for the November deadline. Other states facing high power prices and data centre growth may follow with similar programmes.
Source: Maryland Energy Administration and Solar Power World.
