Maine Solar Panels
In This Guide
Solar in Maine
Maine homeowners face the 8th highest utility prices in the nation, and with electricity costs jumping 42% from 2020 to 2024, energy bills continue to strain household budgets. Home solar panels offer a way to stabilize costs and gain control over your energy future.
This guide explains everything you need to know about solar installation in Maine, from system costs and state incentives to selecting the right setup for your home.
Maine Solar Panel Cost
Our calculator uses real installation data from homeowners across Maine—from Portland to Bangor to Augusta. Enter your details to see personalized costs based on actual projects in your area, helping you make an informed decision about solar.
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Key Takeaways
- Maine electricity rates jumped 61% from 2021 to 2023, making solar panels an increasingly valuable way to stabilize your energy costs.
- The average Maine solar system costs $27,148 and can save homeowners approximately $98,000 over 25 years.
- Maine offers property tax exemptions for solar, protecting you from increased taxes on the value solar adds to your home.
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
Understanding electricity costs in Maine helps you make informed decisions about your home’s energy future and long-term budget planning.
Maine’s electricity rates have climbed significantly in recent years. From 2021 to 2023, residential rates jumped from 17.0 to 27.4 cents per kilowatt-hour—a 61% increase that outpaced the national average considerably.
Solar panels allow homeowners to generate their own electricity, reducing dependence on utility rates. By producing power on-site, you can offset a significant portion of your monthly electric bill with predictable, stable energy costs.
Over a typical 25-year lifespan, solar systems provide consistent energy production while utility rates continue to fluctuate. This long-term stability helps Maine homeowners better plan household budgets and protect against future rate increases.
Price of Energy: Maine vs National Average
Maine Area Utility Providers
Maine’s two major utilities—Central Maine Power (27.5¢/kWh) and Versant Power (29.1¢/kWh)—charge rates significantly above the 2023 national average of 16.0¢/kWh, making electricity costs a substantial household expense for residents statewide.
Maine’s electricity prices rank among the highest nationally due to limited natural gas pipeline infrastructure, reliance on imported energy, and the state’s rural geography, which increases transmission and distribution costs across the grid.
When utility rates exceed the national average by this margin, solar panels can help stabilize monthly energy expenses. Generating your own electricity reduces dependence on utility rate fluctuations that have historically trended upward in Maine.
Maine Utilities Electricity Rates
Maine Solar Incentives
Maine offers valuable solar incentives in Maine that help reduce the upfront cost of installation and improve long-term savings for homeowners.
The state provides a property tax exemption that protects homeowners from increased taxes on the added value solar panels bring to their property. Additionally, Maine’s Net Energy Billing program credits you for excess electricity your system sends back to the grid.
These programs change periodically, so research current requirements carefully. Understanding available incentives helps you make an informed decision about solar installation timing and budget.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Property Tax Exemption | State tax exemption | No property tax on value added to homes from solar panels. | Learn More |
Maine’s Property Tax Exemption for solar energy equipment eliminates property taxes on the added value that solar panels and related equipment bring to your home. When you install a solar energy system, it typically increases your property’s assessed value—but with this exemption, you won’t pay property taxes on that increase. This means your property tax bill stays the same as it was before installing solar, helping you save money every year you own the system.
To qualify, your solar equipment must generate heat or electricity, and the energy must either be used on-site at your property or transmitted through utility lines where you receive bill credits under Maine’s net energy billing programs. You’ll need to file a simple report with your local assessor by April 1st of the first tax year you’re claiming the exemption, using a form provided by the State Tax Assessor. This is a straightforward, one-time filing requirement.
It’s important to note that the exemption rules changed for property tax years beginning on or after April 1, 2025. If you’re part of a community solar project or net energy billing arrangement, there are specific requirements about subscription levels and interconnection agreement dates that may affect eligibility. The exemption continues year after year as long as your solar equipment remains in place and meets the program requirements, providing ongoing savings throughout the life of your system.
Maine’s Net Energy Billing (NEB) program allows you to offset your electricity bills using power generated from small renewable energy systems like solar panels. 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 is available to all residential customers and offers two ways to receive credits on your electric bill.
Under the kWh Credit Program (available to homeowners), the solar energy your system produces is credited to your account as kilowatt-hours, which directly offset your electricity usage. If you participate in a shared project, you’ll receive credits based on your subscription share. Any unused credits remain on your account for up to 12 months before expiring. The renewable energy system must be less than 5 megawatts in size to qualify for the program.
If you’re considering a community solar project, it’s important to work with a company registered with the Maine Public Utilities Commission. Registered providers are required to give you a disclosure form that clearly explains the costs and benefits before you sign up. This consumer protection ensures you understand exactly what you’re getting into. The program is governed by Maine state law and provides a straightforward way to benefit from solar energy, even if installing panels on your own roof isn’t feasible.
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 northern latitude means shorter winter days and longer summer ones, creating seasonal production variations. Snow can temporarily cover panels, but cold temperatures actually boost efficiency—making Maine excellent for solar year-round.
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 Maine to help you discover which neighborhoods are leading the clean energy transition. Explore this interactive map to see how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
For Maine homeowners served by Versant Power or Central Maine Power, Palmetto offers Power Purchase Agreements (PPAs) as an alternative to purchasing a system outright. With a PPA, you pay only for the electricity your panels produce at a set rate per kilowatt-hour, rather than paying thousands upfront or taking on a loan.
This means Palmetto owns, installs, and maintains the system at no cost to you. You avoid equipment costs, maintenance responsibilities, and system performance risks while still reducing your utility bills. Our LightReach program includes everything from design and permitting to premium black panels and ongoing service—all managed by Palmetto Finance in one inclusive plan.
We back every LightReach system with a 90% Production Guarantee, crediting you the difference if your panels underperform. This worry-free approach to solar lets you start saving immediately without the upfront investment or long-term maintenance concerns of system ownership.
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 sense in Maine despite the state’s northern location and snowy winters. Maine receives about 4.5 peak sun hours daily on average, which is sufficient for solar panels to generate meaningful electricity and offset your utility bills.
With electricity rates ranking 8th highest nationally at 23.9¢/kWh and climbing 42% from 2020 to 2024, solar panels help stabilize energy costs. The average Maine system costs around $27,148 and can save homeowners approximately $98,000 over 25 years, with a payback period of about 9 years.
Yes, Maine has net metering through its Net Energy Billing program. Both major utilities—Versant Power and Central Maine Power—offer 1:1 net metering, meaning excess solar energy you send to the grid earns full retail rate credits on your electric bill.
Unused credits roll over month-to-month on a kilowatt-hour basis. However, any accumulated credits expire after 12 months on a rolling basis, so credits banked in June 2024 must be used by June 2025 or they’re eliminated with no compensation.
Yes, solar panels typically increase home value in Maine. Research from Zillow shows that homes with solar panels sell for approximately 4.1% more than comparable homes without solar systems.
For a median-priced Maine home, this translates to thousands of dollars in added value. Additionally, Maine’s Property Tax Exemption ensures you won’t pay increased property taxes on the value solar adds to your home, allowing you to benefit from the increased resale value without higher annual tax bills.
The average solar installation in Maine costs $27,148 for an 8.5 kW system, or about $3.19 per watt. This system size typically offsets 100% of electricity usage for an average Maine home.
Costs vary based on your home’s energy needs, roof characteristics, and equipment quality. Maine’s property tax exemption protects you from increased taxes on the value solar adds to your home, helping preserve long-term savings.
For most Maine homeowners, solar is financially worth it. With electricity rates at 23.9¢/kWh—among the nation’s highest—the average system costs $27,148 and saves approximately $98,000 over 25 years, with a 9-year payback period.
Maine’s property tax exemption and net energy billing program help maximize savings. Your specific return depends on your energy usage, roof characteristics, and available financing options.
At Palmetto, we bring a national perspective with local expertise to Maine solar installations. We offer comprehensive solutions including flexible financing options that work for your budget, access to a trusted network of professional installers, and ongoing support throughout your solar journey.
Our team handles everything from initial design and permitting to installation and maintenance, making the transition to solar straightforward. With programs like LightReach, we even offer options that require no upfront investment, allowing you to start saving immediately.