Community Solar LMI-PPA Grant Program
Administered by Maryland Energy Administration
If you're a low-income Maryland household, this grant program helps community solar projects offer you solar energy at reduced costs—at least 25% cheaper than standard rates, or even free in some cases. To benefit, you need to subscribe to a community solar project that participates in this program; check with your local community solar subscriber organization to see if they're offering LMI-PPA supported subscriptions.
As a community solar subscriber organization, you can apply for grants to offset Power Purchase Agreement costs, allowing you to serve low-income customers at significantly discounted rates. AOI-1 projects must guarantee 15% of output to low-income subscribers at 25% savings (grant capped at $1 million), while AOI-2 projects (on brownfield/landfill sites) must provide 50% free and 25% discounted subscriptions (grant capped at $6 million plus interconnection costs up to $3 million); minimum viable grants are $50,000.
This competitive, statewide program is funded by approximately $17 million from the Strategic Energy Investment Fund's Solar Alternative Compliance Payment revenue ($5 million for AOI-1, $12 million for AOI-2 in FY26). Grants are calculated based on low-income array capacity, projected kWh-ac/kW-dc ratio, local electricity costs, and subscriber savings percentage for AOI-1; AOI-2 uses a $2,000/kW-dc landfill incentive plus 75% of interconnection costs (capped at $3 million) after the first $1 million. The program targets low-income households in Maryland's Community Solar Permanent Program, with FY27 applications expected to open Autumn 2026.
Program details
- Program ID
- 22792
- Last updated
- 10/3/2025
Eligibility
- Sectors
- community solar program subscriber organizati
- Technologies
- solar photovoltaics
Incentive amount
$17,000,000
Program summary
The Community Solar LMI-PPA Grant Program provides monetary incentives to ensure that the benefits of community solar are available to income qualified Maryland households.
In FY 2026, the income requirements focus on households that meet the definition of low-income only.
The grant is divided into two areas of interest (AOIs):
- AOI 1: Project Granted Capacity Under the Community Solar Permanent Program - The project must guarantee at least fifteen percent (15%) of the energy output from the community solar system is subscribed to Low Income subscribers, with minimum cost savings to those subscribers of twenty-five percent (25%) from the utility’s Community Solar Energy Generating System Rate (CSEGS) credit rate* or equivalent.
- AOI 2: Project Granted Capacity Under the Community Solar Permanent Program (100% LMI and Brownfield-Sited) - The project must provide at least fifty percent (50%) of the energy generated by the community solar system at no cost to designated Low Income subscribers, and the remaining energy subscribed with a twenty-five percent (25%) cost savings from the CSEGS Credit Rate to Low Income subscribers. These subscribers may, but are not required to, include those receiving free energy from the same or another community solar array participating in this program. The project must also be sited on a Maryland landfill, rubble-fill, or brownfield site.
Grant Amount
- The AOI 1 grant calculation includes the following variables: (1) size of Low Income portion of the array (to the nearest kW), (2) the estimated kWh-ac/kW-dc ratio for the array, (3) the cost of electricity for the utility service territory ($/kWh), and (4) the percent savings for the subscriber below the Community Solar Energy Generating System (CSEGS) credit rate (or the utility Standard Offer Service retail rate for utilities that credit kWh directly).
- The AOI 2 grant calculation is based on a landfill incentive and an interconnection incentive for projects on designated landfills/brownfields/rubble fills. AOI-2 projects are funded at $2,000/kW-dc. MEA will pay 75% of actual interconnection wiring costs after the first $1,000,000, with a maximum interconnection incentive payment of $3,000,000.
- AOI-1 grants shall be capped at $1,000,000.
- Grants for AOI-2 projects shall be capped at $6,000,000 plus the project’s interconnection incentives.
- Grants for less than $50,000 shall not be considered.
Full program guidelines can be found in the FY26 Funding Opportunity Announcement
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
