Palmetto

Maine

Solar Guide

Certified by Nathan Healy

Quality Solar Solutions Since 2011

Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.

In This Guide

01 Solar Energy in Maine
02 Key Takeaways
03 Maine Reviews
04 Solar Cost Calculator
05 Maine Electricity Prices
06 Maine Solar Incentives
07 Maine Solar Production
08 Solar Installations in Maine
09 Leasing Solar Panels
10 Frequently Asked Questions

Solar in Maine

With Maine’s electricity prices soaring 42% since 2020 and residents paying the 8th highest utility rates nationwide at 23.89 cents per kWh, solar installation offers a smart solution for homeowners seeking energy independence.

Discover how home solar panels can help you take control of your energy costs while contributing to Maine’s growing renewable energy landscape—even as the state works to improve its current 38th ranking in residential solar adoption.

MAINE by the Numbers

38th Most residential solar in the United States

11k Households have installed solar panels

~$8k Maine average solar rebate savings

~$98k Maine average savings over 25 years

Key Takeaways

Maine’s high electricity rates make solar an attractive investment with potential savings of $97,675 over 25 years.
Solar is viable in Maine despite its northern climate, with summer production offsetting winter’s shorter days.
Federal and state incentives can reduce your solar installation costs by approximately $8,144 in Maine.

Palmetto Reviews

Palmetto did an excellent job! from the sales guy Mason to the installers everything was top notch. Installation started at 9am and they were done by lunchtime. I highly recommend Palmetto Solar for installation.

Terry Dibiase

Blairsville, Pennsylvania

I got my solar system a few months ago and have already seen a huge reduction in my power bill. Palmentto did a great job on my install and have been good to work with. I am looking forward to having no light bill at all one day as i reduce my carbon foot print. Solar is the new power source of the future and Palmetto Solar is the place to buy it.

Van Guines

Richmond, Virginia

Palmetto Solar has been very good. Their communications leading up to setting an install date were better than most companies. Installation was fast and excellent and, we now have survived two hurricanes (Florida) with power outages just fine. Their app is straightforward and their support line has real people answering (imagine that). Good experience overall.

Alan Light

Palm Coast, Florida

Solar Cost in Maine

Discover the real cost of solar installation in Maine with Palmetto’s calculator. Using our extensive local installation data from Portland, Bangor, Augusta, and more, we provide accurate estimates tailored to Maine homeowners. Make informed decisions about clean energy with reliable, firsthand information.

System Size

Recommended System

8.50 kW

Typical for your home size in ME

This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Maine.

Cost Breakdown

System Cost

$27,148

Federal Tax Credit (30%)

$-8,144

Final Cost

$19,004

Savings

Monthly Savings

Average utility bill reduction

$223

Payback Period

Break-even point

6.5 years

25-Year Savings
Total financial benefit
$97,675

Get Your Personalized Quote

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.

Portland, ME

Maine Electricity Prices

In 2023, Maine residents faced electricity costs well above the national average, with CMP charging 27.5¢/kWh and Versant at 29.1¢/kWh compared to the national average of just 16.0¢/kWh.

Maine’s higher electricity costs stem from its geographic location, limited local generation, and reliance on natural gas. The state average of 27.4¢/kWh reflects these regional challenges affecting both major utilities.

Solar installation provides Maine homeowners a path to energy independence by locking in predictable energy costs. With electricity rates nearly double the national average, solar’s long-term savings potential becomes increasingly attractive.

Maine Utilities Electricity Rates

CMP

27.50¢

+72%

Versant

29.10¢

+82%

ME Average

27.40¢

+71%

US Average

16.0¢

—

Source: US Energy Information Administration, 2023, Form 861, Table 6

Maine Solar Incentives

Maine homeowners can significantly reduce solar installation costs through various solar incentives in Maine, including federal tax credits and state-specific programs.

The state offers valuable incentives like property tax exemptions, ensuring you won’t pay additional property taxes on the value solar adds to your home. Maine’s Net Energy Billing program also provides credits for excess energy production.

These incentives may change over time, so research thoroughly and consider acting promptly to maximize your savings. Consult with solar experts to understand which benefits apply to your specific situation.

Save an average of

$8,144

in solar rebates in Maine

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 offers a Property Tax Exemption for solar energy equipment that generates heat or electricity. This incentive allows homeowners to exclude the value of qualifying solar systems from their property tax assessment, potentially saving hundreds of dollars annually depending on your local tax rate and system value.

For tax years before April 1, 2025, solar equipment qualifies if all generated energy is either used on-site or transmitted through utility facilities with customers receiving utility bill credits. After April 1, 2025, eligibility requirements change slightly, adding options for net energy billing customers. To claim this exemption, homeowners must file a report with their local tax assessor by April 1st of the first property tax year for which they’re claiming the exemption, using forms provided by the State Tax Assessor.

Maine’s Net Energy Billing (NEB) program allows homeowners to offset their electricity bills using energy generated from small renewable systems like solar panels. The program offers two options: the NEB kWh Credit Program (available to all utility customers) and the NEB Tariff Rate Program (available to non-residential customers only). Both programs apply to renewable energy systems under 5 MW in size.

Under the kWh Credit Program, homeowners receive kilowatt-hour credits on their electric bills for the energy their system produces. These credits can be used to reduce monthly electricity costs, potentially bringing bills close to zero depending on system size and energy usage. Homeowners can install systems on their own property or participate in community solar projects within their utility service territory. Any unused credits expire after 12 months, so it’s important to properly size your system. There are no specific deadlines to enroll, but companies marketing these programs to homeowners must be registered with the Maine Public Utilities Commission and provide a standardized disclosure form explaining costs and benefits.

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 Quote

Maine Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Despite Maine’s northern climate, solar panels can thrive here. With proper installation, Maine’s abundant summer sunlight offsets winter’s shorter days, making solar a viable year-round energy solution.

What Can the Average Maine Solar System Power?

Summer Production (July)

54 kWh/day

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)

30 kWh/day

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

14,600 kWh/year

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 Estimate

Solar Installations in Maine

Discover how Maine communities are embracing solar energy! We’ve meticulously mapped solar installations across the state, allowing you to explore which neighborhoods are leading the clean energy transition. Click on any area to see how many of your neighbors have already made the switch to solar power.

Leasing Solar Panels

In Maine, Palmetto offers Power Purchase Agreements (PPAs) through both Versant Power and Central Maine Power service areas. With a PPA, you pay only for the electricity your solar panels produce at a set price per kilowatt-hour instead of paying upfront for the entire system.

Through our LightReach program, Palmetto handles everything from design and installation to ongoing maintenance at no additional cost. Since we own the system, we take full responsibility for servicing it while you enjoy immediate energy savings without the upfront investment or maintenance concerns.

Considering Maine’s high electricity rates, a PPA can be an excellent option if you want to reduce your energy costs without the initial investment. We even include a 90% Production Guarantee, crediting you the difference if your system underperforms.

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 More

Frequently Asked Questions

Yes, solar makes sense in Maine despite its northern location. With electricity rates 71% higher than the national average, Maine homeowners can save approximately $97,675 over 25 years with solar installation.

Maine offers valuable incentives including the 30% federal tax credit and property tax exemptions. The state’s Net Energy Billing program allows homeowners to receive credits for excess energy production, making solar financially attractive even with seasonal sunlight variations.

Yes, Maine has net metering. Both Versant Power and Central Maine Power offer 1:1 net metering, allowing customers to receive full retail credit for excess solar energy sent to the grid.

Unused credits can be carried over monthly but expire after 12 months on a rolling basis. With these utilities, customers on third-party electric supply also reduce their supplier purchases through net metering.

Yes, solar panels typically increase home value in Maine. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.

This value increase is particularly significant in Maine where electricity rates are high. Additionally, Maine’s property tax exemption ensures homeowners don’t pay extra property taxes on this added value, making solar an attractive long-term investment for homeowners.

In Maine, the average cost for solar installation is $19,004 after federal tax credits for an 8.5 kW system. The initial system price of $27,148 is reduced by approximately $8,144 through the 30% federal tax credit.

Costs vary based on system size, equipment quality, and installation complexity. Most Maine homeowners see a complete return on investment within 6.5 years and save nearly $98,000 over the system’s 25-year lifespan.

In Maine, solar is financially worthwhile due to the state’s high electricity rates (23.89¢/kWh) and available incentives. The average system pays for itself in about 6.5 years while delivering approximately $97,675 in savings over 25 years.

With the 30% federal tax credit and property tax exemptions, Maine homeowners can significantly reduce initial costs. Even with seasonal sunlight variations, properly designed systems provide year-round value and protection against rising utility rates.

As a national solar provider with strong local expertise in Maine, we at Palmetto offer comprehensive solar solutions tailored to Maine’s unique climate and energy needs.

Our team provides transparent pricing, flexible financing options, and professional installation through our trusted network of local installers. We handle every step of the process while providing ongoing support through our monitoring app and maintenance services.