Maryland

Maryland's electricity market is partially deregulated, giving consumers the ability to choose from competitive suppliers for their home or business. Residents can reduce their bills further by upgrading to energy-efficient lighting and appliances, weatherizing their homes, and supporting renewable energy initiatives such as community solar and offshore wind projects. These steps help save money and support Maryland’s clean energy transitio

Maryland's electricity market is partially deregulated, giving consumers and businesses freedom to choose their electric generation supplier. The Electric Customer Choice and Competition Act of 1999 separated the supply portion of the electricity bill from the regulated transmission and distribution delivered by utilities like Baltimore Gas and Electric (BGE), Pepco, Delmarva Power, and Potomac Edison. Under this structure, each utility continues to own and maintain the poles and wires that deliver power to your facility. However, the generation component – typically the largest part of a commercial bill – is open to competition. Dozens of licensed electricity suppliers compete in Maryland to offer a range of contract types, pricing options, renewable energy products and customer service packages. This competition allows companies to shop around for fixed-rate plans to hedge against volatility in wholesale markets, variable or indexed-rate plans to capture lower spot prices, time-of-use programs that incentivize off-peak consumption, and 100% renewable or carbon-free electricity plans to support sustainability commitments. Some suppliers even offer hybrid contracts that blend fixed and variable components or include value-added services like energy audits, bill management and demand forecasting.

When evaluating Maryland electricity supplier offers, commercial buyers should examine not just the advertised price per kilowatt-hour but also underlying terms such as contract length, termination provisions, pass-through charges, bandwidth clauses and early termination fees. It is also important to request supplier historical pricing, credit requirements and references. Businesses with multiple sites or complex load profiles may benefit from engaging an energy broker or consultant to develop a competitive request for proposals (RFP) and negotiate favorable contract language. Maryland’s Public Service Commission maintains a list of licensed suppliers and enforces consumer protections through its Consumer Affairs Division. The commission also publishes complaint statistics and requires suppliers to disclose contract terms clearly so that customers can make informed decisions.

For businesses that prefer not to shop for a supplier, utilities continue to provide a Standard Offer Service (SOS) or “default service.” Under SOS, utilities procure power through competitive auctions overseen by the PSC, and the resulting rate is passed through to customers without markup. SOS rates change seasonally for small commercial customers and monthly for larger non-residential accounts, reflecting wholesale market conditions. While SOS can serve as a benchmark (“price to compare”), long-term energy buyers often choose third-party suppliers to lock in a budget and align procurement with their risk tolerance and sustainability goals. For example, a manufacturing plant may elect a 24-month fixed price contract to stabilize operating costs, while a data center pursuing a renewable energy mandate may choose a supplier that provides power matched with certified Maryland Tier 1 renewable energy certificates or regional wind RECs.

In addition to shopping for supply, Maryland businesses can significantly lower utility expenses through energy efficiency and load management. The EmPOWER Maryland program, administered by utilities under oversight of the PSC, offers rebates and incentives for a wide variety of measures including LED lighting retrofits, high-efficiency HVAC equipment, building automation systems, variable frequency drives, refrigeration upgrades, compressed air system improvements and custom projects. Participation in these programs can reduce project payback periods and improve cash flow. Many utilities provide free energy assessments and engineering support to identify opportunities. Commercial customers may also tap into tax credits and deductions at the state and federal level for qualifying efficiency investments.

Demand response is another valuable tool for reducing energy costs in Maryland’s deregulated market. Programs offered through PJM Interconnection and local utilities pay businesses to curtail electricity consumption during periods of high demand or grid stress. Examples include PJM’s Economic Demand Response and capacity market programs, which require participants to commit to load reductions when notified, and utility-administered peak shaving programs like BGE’s PeakRewards or Pepco’s Energy Wise Rewards for commercial customers. By adjusting operations, shifting non-critical processes to off-peak periods, or utilizing on-site generation such as backup generators or battery storage, companies can earn capacity payments and reduce peak demand charges on their bills. Aggregators and curtailment service providers can help manage enrollment and dispatch obligations.

Many Maryland businesses are also exploring distributed energy resources to further hedge costs and support sustainability objectives. On-site solar photovoltaic systems can offset utility purchases, and the state’s generous net metering rules allow excess generation to be credited at the full retail rate. Maryland’s community solar pilot program enables businesses without suitable rooftops to subscribe to offsite solar arrays and receive bill credits based on their subscription share. The state also supports renewable energy through the Maryland Renewable Energy Portfolio Standard, which requires electricity suppliers to source an increasing percentage of their sales from Tier 1 renewable resources such as wind, solar, geothermal, hydropower and qualifying biomass. Suppliers must acquire Solar Renewable Energy Credits (SRECs) to meet the solar carve-out, offering additional revenue streams for solar project owners.

Financing clean energy improvements is increasingly accessible in Maryland. The Commercial Property Assessed Clean Energy (C-PACE) program allows commercial property owners to finance energy efficiency, renewable energy and resiliency projects through a voluntary assessment on the property tax bill. C-PACE can cover up to 100% of eligible project costs with repayment terms of up to 20 or 30 years, and the financing obligation remains with the property even if ownership changes. This mechanism frees up capital and aligns repayment with the project’s energy savings. Additionally, the Maryland Energy Administration and Maryland Clean Energy Center administer grant and loan programs for clean energy technologies, and utilities offer on-bill financing or zero-interest loans for certain efficiency measures. Businesses can also leverage federal incentives such as the Investment Tax Credit (ITC) for solar and energy storage, accelerated depreciation, and upcoming tax credits under the Inflation Reduction Act for clean electricity.

To maximize savings and sustainability outcomes, Maryland firms should take a holistic approach that combines supplier choice with efficiency upgrades, demand management and on-site renewable generation. Conducting an energy audit and developing a strategic energy plan can identify the most cost-effective combination of measures. Engage internal stakeholders from finance, facilities and sustainability departments to set goals and evaluate proposals. Where expertise is limited, partner with qualified energy consultants or energy service companies to design and implement solutions. With its competitive electricity market, supportive regulatory environment and robust incentive programs, Maryland offers companies significant opportunities to reduce energy expenses, mitigate market risk and advance environmental commitments.

Ready to explore your options? Use the Compare Maryland Electricity Rates tool below to request quotes from multiple suppliers and start saving today.
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