The Maryland Energy Administration will award the money through a competitive process, favoring projects that can provide the most megawatt-hours of electricity per dollar. The program was created by the General Assembly earlier this year and is funded with $100 million annually from the Strategic Energy Investment Fund.

To qualify, developers must have completed early steps such as securing land and applying for approval from the Maryland Public Service Commission or the regional electric grid. Initial applications are due Nov. 30. Developers who pass the eligibility review will have until Jan. 22 to submit bids.

Projects must begin operating within seven years of receiving funding. Collectively, they are expected to provide several hundred megawatts of power, enough to serve about 150,000 homes a year, said Maryland Energy Administration Director Kelly Speakes-Backman.

State officials say adding in-state generation could help ease electricity costs over time by increasing supply as demand grows. The grants are not expected to lower bills immediately. Speakes-Backman described the program as an investment in affordability over the medium and long term.

The funding comes from alternative compliance payments made by electricity suppliers that do not meet state requirements for the share of renewable energy in their portfolios. Those payments have grown as renewable-energy requirements have increased faster than projects have been built. Money in the fund has also been used for other state budget and energy purposes, drawing criticism from climate groups and others concerned about how it is spent.

The grants may partly offset the loss of federal investment tax credits for renewable energy projects, which were canceled by President Donald Trump’s administration, Speakes-Backman said. She cautioned that the state program would not fully replace the federal support, while calling the $200 million investment significant.

Renewable projects, including solar farms and battery facilities, have sometimes faced resistance from nearby communities. Developers must show in their initial applications that they notified a local elected official; later bids must include plans for community engagement and benefits. However, Speakes-Backman said the law requires winning bids to be selected solely according to the electricity delivered per dollar spent.

Gov. Wes Moore said the program is intended to expand cleaner, lower-cost generation in Maryland. Senate President Bill Ferguson, a Baltimore City Democrat, said lawmakers created it to increase grid supply and help lower utility bills.