Making Sense of the Maryland CPCN in 2026

For most utility-scale solar projects in Maryland, the Certificate of Public Convenience and Necessity is the central approval, the point where land use, community impact, environmental effects, grid reliability, decommissioning, and financial assurance all get reviewed together. 

The CPCN rewards preparation. Owners who understand what the Public Service Commission reviews, which path their project follows, and what documentation to bring can move through it with far more certainty and far fewer surprises.

Here is how the process works in 2026 and how to approach each step with confidence.

Start with what a CPCN is and where its authority comes from

MD CPCN for Utility Solar — Public Utilities Article § 7-207

The CPCN is the Maryland Public Service Commission's authorisation to construct or modify a new generating station or a high-voltage transmission line. Under Public Utilities Article § 7-207, a person may not begin construction of a covered generating station, an overhead transmission line, or a qualified generator lead line until the PSC issues a CPCN.

The Commission's siting jurisdiction covers generating stations, along with overhead transmission lines that carry a voltage greater than 69 kilovolts. Within that jurisdiction, the CPCN works as the consolidated review point. The Department of Natural Resources Power Plant Research Program (PPRP) coordinates a multi-agency evaluation of the project's environmental, socioeconomic, and cultural impacts, documents that are reviewed in a Project Assessment Report, and recommends licensing conditions the PSC may attach to an approval. Those conditions become enforceable once the CPCN is granted. Knowing that structure up front helps you plan for a single, integrated review rather than a scattered set of permits.

Confirm which path your project follows

MD CPCN Exemptions — Public Utilities Article § 7-207.1

MD Generating Station Definition — Public Utilities Article § 7-207

The first confidence-builder is knowing that not every project needs a full CPCN. Maryland sorts solar projects into tiers based on size and configuration, so the earlier you place your project, the better you can plan.

State law excludes certain smaller facilities from the definition of a generating station. A facility with a capacity of up to 2 megawatts that meets other requirements is generally excluded, and under Chapter 460 of 2023 a combination of co-located or adjacent solar facilities with a cumulative capacity up to 14 megawatts, with individual capacities up to 2 megawatts, may also fall outside the definition when it meets the applicable conditions.

Public Utilities Article § 7-207.1 provides exemptions and an expedited path for other projects. Examples include land-based wind projects under 70 megawatts that sell only on the wholesale market, projects under 70 megawatts that export less than 20 percent of the energy generated on an annual basis, and projects under 25 megawatts that use at least 10 percent of their generation onsite.

Some projects avoid PSC pre-construction review altogether. Some qualify for an expedited approval to construct. Larger projects need a full CPCN. The useful question is not only whether your project needs a CPCN, but which path applies and what documentation the PSC, PPRP, county, utility, landowner, lender, and insurer will expect to see.

Know the distributed generation option

MD DG-CPCN — Public Utilities Article § 7-207.4

MD Renewable Energy Certainty Act (RECA) — HB 1036 / SB 931 (2025)

The Renewable Energy Certainty Act created a faster path for mid-sized solar: the distributed generation CPCN, or DG-CPCN, for distributed solar projects generally between 2 and 5 megawatts.

The DG-CPCN trades case-by-case review for standardized requirements. PPRP was directed to develop proposed standard siting and design requirements and standard licensing conditions by July 1, 2026, and the PSC is to adopt implementing regulations by July 1, 2027. An applicant that demonstrates compliance with those standards qualifies for the faster process, and counties receive notice within 30 days of an application rather than 90.

Timing is the thing to watch. Until the PSC's regulations take effect, no DG-CPCNs can be issued, so a project that would qualify for the DG-CPCN continues through the standard CPCN process for now. Community solar projects, in particular, still apply for a full CPCN until those regulations are in place. If you are planning a mid-sized project, track this rulemaking through 2026 and 2027, because the path available at filing depends on where it stands.

Prepare for how the review actually works

MD CPCN Process — PPRP Project Assessment Report and Licensing Conditions

A CPCN application is substantial, so it pays to prepare early. The applicant notifies each county and municipality where the project or line is located, submits a lengthy environmental review document, and takes part in public hearings that the PSC or a public utility law judge holds in each affected county or municipality.

PPRP, coordinating with other state agencies, evaluates impacts to water, air, land, ecology, and socioeconomics, then recommends licensing conditions. Those conditions frequently include a decommissioning plan, a vegetation management plan, and afforestation or reforestation commitments. Parties to a CPCN case typically include the applicant, PPRP, PSC staff, and the Office of People's Counsel, with counties, local governments, and community members able to participate.

Plan around the timeline. The statute targets a decision on a generating station within 365 days of a complete application, and 150 days for a modification. In practice, the average time to issue a CPCN ran near 400 days in 2024 and slightly lower into late 2025, as application volume climbed and PPRP requested review extensions. Exemption decisions move much faster, often within about 60 days. If your project is working toward a financing or tax-credit deadline, build that timeline into your schedule from the start.

Understand state authority and local process together

MD Renewable Energy Certainty Act (RECA) — HB 1036 / SB 931 (2025)

Board of County Commissioners of Washington County v. Perennial Solar (2019)

Maryland courts settled the core jurisdictional question in 2019. In Board of County Commissioners of Washington County v. Perennial Solar, the state's highest court held that state law impliedly preempts local zoning regulation of large solar projects, leaving the PSC as the ultimate siting authority under § 7-207.

RECA then rebalanced the relationship. It limited local jurisdictions from prohibiting compliant solar projects and required faster local processing of qualifying site development plans, while preserving local roles in development review, stormwater, grading, and inspections. RECA also altered the factors the PSC must weigh before taking final action on a CPCN. The confident approach is to build a record that satisfies state review and local development requirements together, rather than treating them as separate hurdles.

Account for energy storage early

MD CPCN for Energy Storage — Chapters 625 and 626 of 2025

Storage now overlaps with the CPCN framework. The requirement to obtain a CPCN for the construction of certain energy storage devices runs through June 30, 2030, under Chapters 625 and 626 of 2025. For solar-plus-storage projects, that means siting, storage approval, and decommissioning are increasingly reviewed together. A solar-plus-storage asset carries a different risk profile than a solar project with a battery added on, so it helps to reflect that difference in the CPCN record from the beginning.

Preparation is your advantage

Approaching the Maryland CPCN with confidence comes down to preparation. It is one consolidated record that shows a project fits its site, its community, the grid, and its own end of life.

For developers, the CPCN is where preparation turns into certainty. Meeting state siting standards, producing a credible environmental review document, engaging affected communities, and presenting a defensible decommissioning plan all shorten the path to approval. Strong documentation reduces the odds of extensions, added conditions, and delay, and it protects the financing and incentive timelines a project depends on.

For lenders, CPCN conditions become part of the project's obligations for its entire operating life. Decommissioning requirements, financial assurance, and licensing conditions all shape the credit picture. A CPCN record built on credible cost estimates and defensible assumptions gives underwriters more confidence that end-of-life liabilities are funded and that the project will not stall on a compliance gap.

For insurers, the CPCN record is a documentation source. Equipment inventories, decommissioning cost estimates, and residual value assumptions inform how a project is valued, how claims are evaluated, and how post-loss recovery is understood. A project with clear, supported numbers is easier to underwrite than one that leans on generic assumptions.

For asset owners, the CPCN sets obligations that recur for decades. Licensing conditions, five-year decommissioning updates, and financial assurance all trace back to the record established at approval. Owners who understand what their assets are worth, and can support that view, stand on firmer ground when a condition is reviewed, updated, financed, or challenged.

Buckstop gives you a clear, defensible view of what your assets are worth across their full lifecycle using real transaction data and current market data across each component's recovery pathway. Contact us to understand the value of your project at every stage.