Maine Solar Panels

The Residential Clean Energy Tax Credit (IRS Section 25D) provides homeowners with a 30% federal tax credit on the full cost of a new battery storage system, as long as the battery has a capacity of at least 3 kWh. There is no dollar cap on this credit, meaning larger systems generate proportionally larger savings. The credit is claimed by filing IRS Form 5695 with your federal tax return for the year the system is placed in service.

Importantly, this battery storage credit is separate from the residential solar ITC and applies to standalone battery systems — solar panels are not required. A battery paired with a new or existing solar installation also qualifies. The credit directly reduces your federal income tax liability dollar-for-dollar, and any unused portion may be carried forward to future tax years.

Homeowners should consult a tax professional to confirm eligibility and ensure proper documentation of installation costs. Keep all receipts and manufacturer certifications for the battery system as supporting documentation when filing.

Under IRS Section 25D, homeowners who upgrade their electrical panel as part of a rooftop solar installation may claim a 30% federal tax credit on the cost of that panel upgrade, with no dollar cap. This credit applies specifically when the panel upgrade is directly connected to and necessary for the solar installation — it cannot be claimed as a standalone upgrade under 25D.

This is a meaningful benefit for Maine homeowners whose older homes require an electrical service upgrade before solar can be installed. Rather than treating the panel upgrade as an out-of-pocket expense, it becomes part of the overall solar project cost eligible for the 30% credit. The credit is claimed on IRS Form 5695 along with your other Residential Clean Energy credits.

Be sure to work with your solar installer to document that the panel upgrade is directly tied to the solar installation. Keep all invoices and contractor documentation to support your tax filing. Consult a qualified tax professional for guidance specific to your situation.

Maine’s Net Energy Billing (NEB) program allows residential solar customers to receive bill credits for any excess electricity their solar array sends to the grid. Under the kWh Credit Program, credits are applied on a one-to-one basis — for every kilowatt-hour you export, you receive a credit for one kilowatt-hour of future consumption. Credits roll over monthly and can be used to offset your bill during periods when your solar array produces less than you consume. Any unused credits expire after 12 months. Current retail credit rates are approximately $0.27/kWh for Central Maine Power (CMP) customers and $0.32/kWh for Versant customers.

NEB is available to residential, commercial, and industrial customers across all Maine electric utilities, including Central Maine Power, Versant, Eastern Maine Electric Cooperative, and smaller providers. The program rules are consistent statewide. A separate Tariff Rate Program is available for non-residential participants, where credits are set annually by the Maine Public Utilities Commission (PUC) rather than at the retail rate.

Note that as of January 1, 2026, policy changes have introduced new fees and reduced compensation for community solar and certain commercial/industrial NEB participants. However, residential rooftop solar NEB remains protected and continues to operate under the favorable one-to-one retail-rate credit structure. Contact your utility or visit the Maine PUC website for the most current rate and program details.

Maine’s Renewable Energy Investment Exemption ensures that adding solar panels or a battery storage system to your home will not increase your property tax bill. Effective April 1, 2020, qualifying renewable energy equipment is fully exempt from property tax assessment. Eligible equipment includes solar panels, mounting racks and tracking hardware, inverters, batteries used to store solar-generated electricity, charge controllers, and all directly related wiring and components.

To claim the exemption, homeowners must file a one-time application with their local municipal assessor by April 1 of the first tax year in which the exemption is requested. Once approved, the exemption remains in place without annual renewal. This benefit can represent significant long-term savings, particularly as solar installations can meaningfully increase a home’s assessed value.

Applications can be downloaded from the Maine Revenue Services website. Contact your local assessor’s office for submission instructions, as procedures may vary by municipality. There is no income requirement — the exemption is available to all Maine homeowners who install qualifying renewable energy equipment.

Maine provides a sales tax exemption on the purchase of solar energy equipment, meaning you will not pay the state’s 5.5% sales tax on solar panels and related system components. This exemption is applied automatically at the point of sale — there is no application or rebate process required. For a typical $20,000 solar installation, this translates to an immediate savings of approximately $1,100.

The exemption applies to solar panels and directly associated equipment needed for the solar energy system. This upfront savings reduces the net cost of going solar before any tax credits or other incentives are applied, making it one of the simplest and most immediate financial benefits available to Maine solar buyers.

The exemption is available to both residential and commercial solar purchasers in Maine. Your solar installer or equipment supplier should automatically apply the exemption at the time of purchase. If you believe the exemption was not applied correctly, contact Maine Revenue Services for guidance.

Efficiency Maine’s Small Battery Incentive Program pays eligible battery owners for helping reduce strain on the New England electric grid during high-demand periods known as demand response events. Participants earn $100 per kilowatt (kW) of average discharge during these events, with payments made annually each December through Tesla’s app or Efficiency Maine’s website. A typical participating household can expect to earn approximately $300 per year, depending on the number of events that occur. Demand response events take place roughly 40 to 60 times between June 1 and September 30, with each event lasting no more than three hours.

To be eligible, your battery must be interconnected according to your utility’s guidelines and you must be on a Maine utility residential or small business (Small General Service or General Service) rate. Solar generation is not required — a standalone battery qualifies. Participation is facilitated through Efficiency Maine’s approved Program Partners (battery manufacturers or installers who have signed 10-year agreements with Efficiency Maine and receive $200 per kW per year on behalf of participants).

As of early 2026, no Program Partners have yet enrolled in the program. If you are interested in participating, contact your battery manufacturer or installer and encourage them to apply to become an Efficiency Maine Program Partner. Visit the Efficiency Maine website for the latest program status and partner list.

Efficiency Maine’s Energy Storage System Project Program is designed for demand-metered customers, including commercial businesses, nonprofits, institutions, and government entities. Eligible participants who install a qualifying new battery storage system and sign a 5-year contract with Efficiency Maine can receive $200 per kW per year, calculated based on average summer peak demand load reduction performance. The maximum annual incentive payment per participant is $600,000, making this a substantial opportunity for larger commercial installations.

This program is distinct from the residential Small Battery Program and is specifically targeted at organizations that are billed on a demand-metered rate by their Maine utility. The battery system must be new and meet Efficiency Maine’s technical requirements. Participants commit to a 5-year performance agreement, during which their battery’s demand reduction performance is measured and compensated annually.

Interested commercial or institutional customers should contact Efficiency Maine’s non-residential team at (800) 565-3181 or visit the Efficiency Maine website for program details, eligibility requirements, and application information. This program represents one of the most significant battery storage incentives currently available in Maine for non-residential customers.

In April 2024, the U.S. Environmental Protection Agency awarded Maine’s Governor’s Energy Office (now the Maine Department of Energy Resources) a $62 million grant through the federal Solar for All program. Known as the Maine Energy Solar for All (MESA) program, it is designed to help over 20,000 low-income and disadvantaged Maine households access solar energy and battery storage. Eligible participants are estimated to save between $380 and $1,400 annually on their energy bills. All program funds are required by federal law to benefit low-income and disadvantaged households.

The program will operate through four financial assistance channels: single-family on-site solar, multifamily on-site solar, cooperatively owned community solar, and a new community solar and storage program. Energy storage is incorporated across all four channels to maximize resilience and bill savings. In July 2025, the EPA approved Maine’s implementation plan, with competitive funding opportunities for solar installers and developers planned for 2025 and direct benefits expected to reach Maine households in 2026.

Specific eligibility criteria, income thresholds, and application procedures for households had not yet been finalized as of early 2026. Maine residents who believe they may qualify should monitor the Maine Department of Energy Resources website for program announcements, application openings, and approved installer lists. This program represents the most significant new solar incentive opportunity for lower-income Maine households in recent years.

Efficiency Maine’s PACE (Property Assessed Clean Energy) financing program provides low-income Maine homeowners with an accessible loan option for solar installations. The program features low or no down payment requirements and below-average interest rates, helping qualifying households overcome the upfront cost barrier of going solar. PACE loans are repaid over time and are structured to make clean energy adoption financially feasible for those who may not qualify for traditional financing.

Eligibility for PACE financing is limited to low-income individuals and households, as defined by Efficiency Maine’s program guidelines. Interested homeowners should contact Efficiency Maine directly to determine whether they qualify and to learn about current loan terms, income thresholds, and the application process. This financing option can be combined with other available incentives, such as the Solar for All program or the property tax exemption, to further reduce the net cost of a solar installation.

For more information or to apply, contact Efficiency Maine’s residential team at (800) 750-4000 or visit the Efficiency Maine website. Program terms and availability may change, so it is recommended to confirm current details directly with Efficiency Maine before proceeding.