Maine
In This Guide
Solar in Maine
Maine homeowners are discovering solar energy as a smart solution to rising electricity costs. With utility rates climbing 42% from 2020 to 2024, many residents are exploring how solar panels provide long-term savings.
Understanding your solar options is the first step toward making an informed decision. This guide covers everything you need to know about solar panels for your home in Maine.
Key Takeaways
- Maine electricity rates jumped 42% since 2021 to 23.9¢/kWh, making solar panels a smart long-term investment.
- Average Maine homeowners save $98,000 over 25 years with solar panels after federal tax credits and incentives.
- Solar systems pay for themselves in 6.5 years while protecting against future utility rate increases in Maine.
Solar Cost in Maine
Our solar cost calculator uses real installation data from Maine homeowners in Portland, Bangor, Augusta, and beyond. Get personalized pricing based on actual local projects, not generic estimates.
System
Cost
Savings
Looking for More Detailed Maine City Guides?
Explore our comprehensive solar guides for major cities across Maine to find location-specific information on incentives, installers, and solar potential.
Maine Electricity Prices
Maine’s electricity costs have surged dramatically, making energy bills a growing concern for homeowners across the state.
Over the past four years, Maine’s electricity rates jumped from 17.0 cents per kWh in 2021 to 23.9 cents per kWh in 2024.
Solar panels offer Maine homeowners a way to generate their own electricity, reducing dependence on the grid and utility rate increases.
With solar systems lasting 25+ years, homeowners can lock in predictable energy costs while traditional electricity rates continue climbing nationwide.
Price of Energy: Maine vs National Average
Maine Area Utility Providers
Maine’s two major utilities, Central Maine Power (CMP) and Versant Power, charge significantly higher electricity rates than the national average, based on 2023 data.
CMP customers paid 27.5¢ per kWh while Versant customers paid 29.1¢ per kWh in 2023, compared to the national average of 16.0¢ per kWh.
These elevated rates make solar installation particularly valuable for Maine homeowners, as higher utility costs mean greater potential savings from generating your own clean energy.
Maine Utilities Electricity Rates
Maine Solar Incentives
Maine offers valuable federal and state solar incentives in Maine that help reduce installation costs for homeowners.
These programs include property tax exemptions that protect you from increased taxes on your home’s added solar value, plus net energy billing credits for excess electricity.
Research these incentives thoroughly and act promptly, as program details and availability can change over time.
$8,144
Average savings in Maine solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Property Tax Exemption | State tax exemption | No property tax on value added to homes from solar panels. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Maine’s Property Tax Exemption for solar energy removes your solar equipment from local property tax calculations, meaning you won’t pay additional property taxes on the value that solar panels and related equipment add to your home. This exemption applies to both solar panels that generate electricity and solar equipment that produces heat, helping you save money on your annual property tax bill.
To qualify for this exemption, your solar energy system must meet specific requirements depending on when it was installed. For systems installed before April 1, 2025, all the energy must either be used on your property or transmitted through utility lines where you receive bill credits. For newer systems installed after April 1, 2025, additional options are available including community solar arrangements. You must file a report with your local tax assessor by April 1st of the first tax year you claim the exemption, using a form provided by the State Tax Assessor. The exemption continues as long as your system meets the eligibility requirements, providing ongoing property tax savings throughout your solar system’s lifetime.
Maine’s Net Energy Billing (NEB) program allows homeowners and businesses to offset their electricity bills by generating renewable energy from small solar or other renewable systems up to 5 MW in size. You can either install your own system on your property or participate in a shared community solar project located anywhere within your utility’s service territory. The program offers two different credit options depending on whether you’re a residential or commercial customer.
For residential customers, the NEB kWh Credit Program provides kilowatt-hour credits that directly offset your electricity usage on a one-to-one basis. Commercial and industrial customers can choose between the kWh credit option or the NEB Tariff Rate Program, which provides dollar credits based on annually-set rates that vary by utility company and customer size. For 2025, these tariff rates range from about $0.13 to $0.29 per kWh depending on your utility and customer classification. Any unused credits expire after 12 months, so it’s important to size your system appropriately for your annual energy needs.
To participate, your renewable energy system must be located within the same utility service territory as your home or business. If you’re considering a shared community solar project marketed by a third party, make sure the company is registered with the Maine Public Utilities Commission and provides you with the required NEB Disclosure Form that explains all costs and benefits before you sign up.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Maine incentives.
Get a Free QuoteMaine Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Maine’s seasonal sunlight variations and snowy winters create unique solar conditions. Despite shorter winter days, proper system design maximizes year-round energy production effectively.
What Can the Average Maine Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Maine homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Maine homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Maine
We’ve mapped every solar installation across the United States to show you something exciting: your Maine neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar.
Leasing Solar Panels
In Maine, Power Purchase Agreements (PPAs) are available for both Central Maine Power and Versant Power customers, offering an alternative to purchasing solar panels outright. With a PPA, you pay a fixed rate per kilowatt-hour (kWh) for the electricity your solar panels generate rather than buying the system itself.
PPAs provide several advantages over cash purchases, including no upfront costs, no maintenance responsibilities, and predictable energy rates. Through Palmetto’s LightReach program, you get comprehensive coverage including design, installation, monitoring, and maintenance all managed by our team.
Unlike traditional ownership, LightReach centralizes everything into one worry-free experience with our 90% production guarantee and comprehensive protection program. Learn more about your solar financing options to find the best solution for your Maine home’s energy needs.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent sense in Maine. With electricity rates jumping 42% since 2021 to 23.9¢/kWh, Maine homeowners face some of the highest energy costs in the nation.
Solar panels offer protection against rising utility rates while providing substantial savings. The average Maine homeowner saves $98,000 over 25 years with a solar system that pays for itself in just 6.5 years.
Yes, Maine has net metering through its Net Energy Billing (NEB) program. Both Central Maine Power (CMP) and Versant Power offer 1:1 net metering, meaning you receive full retail rate credits for excess solar electricity sent to the grid.
Unused credits carry over month-to-month but expire after 12 months on a rolling basis. This means credits earned in June must be used by the following June, or they’re forfeited with no compensation.
Yes, solar panels typically increase home value in Maine. A Zillow study found that solar panels increase home value by 4.1% on average across the United States.
Maine’s property tax exemption for solar installations means you won’t pay additional property taxes on the added value from your solar panels, making this increase in home value even more beneficial for Maine homeowners.
Solar costs in Maine range from $19,000-$27,000 after federal tax credits for a typical home system. An 8.5 kW system costs approximately $27,148 before incentives and $19,004 after the 30% federal tax credit.
Your final cost depends on system size, roof complexity, and equipment choices. Maine’s high electricity rates of 23.9¢/kWh make solar particularly cost-effective, with most systems paying for themselves in 6.5 years.
Yes, solar is financially worth it in Maine. With electricity rates at 23.9¢/kWh and rising 42% since 2021, solar provides substantial long-term savings for homeowners.
The average Maine solar system saves $98,000 over 25 years and pays for itself in just 6.5 years. Solar panels protect against future utility rate increases while generating predictable energy savings throughout their 25+ year lifespan.
We believe Palmetto Solar is the best choice for Maine homeowners. As a national company with local focus, we combine extensive experience with personalized service for your community.
We offer some of the industry’s best financing options and work with a trusted network of local installers. Our comprehensive approach ensures quality installations backed by strong warranties and ongoing support throughout your solar journey.