Maine
In This Guide
Solar in Maine
Maine homeowners face the 8th highest utility prices in the nation, making solar installation an increasingly attractive solution. With electricity costs rising 42% from 2020 to 2024, solar offers a practical way to reduce energy expenses.
This guide covers everything you need to know about solar panels for your home in Maine, from costs and incentives to installation considerations.
Key Takeaways
- Maine homeowners face electricity rates 45% above national average at 23.9¢ per kWh, making solar savings especially valuable.
- Solar systems in Maine average $19,004 after federal tax credits with typical payback periods around 6.5 years.
- Property tax exemptions protect Maine solar owners from increased taxes on the added value solar brings to homes.
Solar Cost in Maine
Our solar cost calculator uses real installation data from Maine homes in Portland, Bangor, Lewiston, and beyond. Get personalized pricing based on actual local projects, not estimates. See what solar truly costs in your area with our firsthand Maine data.
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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 significantly exceed national averages, creating financial strain for homeowners across the state.
From 2021 to 2024, Maine’s electricity rates jumped from 17.0 to 23.9 cents per kWh, representing a 41% increase in just three years.
Solar panels allow homeowners to generate their own electricity, reducing dependence on the grid and providing protection against these rising utility rates.
Over 25 years, solar systems can provide predictable energy costs while traditional electricity rates continue climbing, offering long-term financial stability.
Price of Energy: Maine vs National Average
Maine Area Utility Providers
Maine residents primarily receive electricity from two major utilities: Central Maine Power (CMP) at 27.5¢ per kWh and Versant Power at 29.1¢ per kWh in 2023.
Both utilities charge significantly above the 2023 national average of 16.0¢ per kWh, with rates closely matching Maine’s state average of 27.4¢ per kWh.
These high electricity rates make solar particularly valuable for Maine homeowners, as solar panels can help offset expensive utility costs with clean energy production.
Maine Utilities Electricity Rates
Maine Solar Incentives
Maine residents can significantly reduce solar costs through valuable solar incentives in Maine and federal programs designed to make renewable energy accessible.
Property tax exemptions protect Maine homeowners from increased taxes on the added value solar panels bring to their homes, keeping ownership costs predictable.
Net energy billing credits solar owners directly on utility bills for excess electricity returned to Maine’s power grid.
$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 equipment eliminates property taxes on solar installations that generate heat or electricity for your home. This means you won’t pay any additional property taxes on the value that your solar system adds to your property, providing ongoing annual savings throughout the life of your system.
To qualify for this exemption, your solar equipment must either use all the energy it generates on-site at your property, or send excess energy back to the grid where you receive utility bill credits through Maine’s net metering programs. 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. Important timing note: the current solar exemption rules apply to property tax years beginning before April 1, 2025, after which updated requirements will take effect that may include additional eligibility criteria for certain types of solar installations.
Maine’s Net Energy Billing (NEB) program allows homeowners and businesses to offset their electricity bills using 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 within your utility’s service area. The program is available to all electric utility customers and covers renewable generators up to 5 MW in size.
The program offers two ways to receive credits: the kWh Credit Program (available to all customers) provides kilowatt-hour credits on your bill, while the Tariff Rate Program (for non-residential customers only) provides dollar credits based on annually-set rates. For 2025, tariff rates range from approximately $0.13 to $0.28 per kWh depending on your utility company, customer class, and project type. Any unused credits expire after 12 months, so it’s important to size your system appropriately for your energy usage. Companies marketing solar projects to residential customers must be registered with the Maine Public Utilities Commission and provide disclosure forms detailing project 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 QuoteMaine Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Maine’s long winter days and snowy conditions create unique solar challenges, but with proper system design, the Pine State can achieve excellent solar production 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 the United States to help Maine residents discover which neighborhoods have embraced clean energy. Explore this interactive map to see how many of your neighbors have made the switch to solar power!
Leasing Solar Panels
Maine homeowners can choose from Power Purchase Agreements (PPAs) available through both Central Maine Power and Versant Power. With a PPA, you pay for the actual energy your solar panels produce at a set rate per kilowatt-hour, rather than making monthly loan payments or paying upfront costs.
PPAs offer significant advantages over purchasing solar systems outright, including no maintenance responsibilities, immediate savings, and protection from rising electricity costs. Comparing solar financing options helps determine the best approach for your situation.
Palmetto’s LightReach program provides comprehensive solar solutions with design, installation, maintenance, and monitoring all included. Unlike traditional ownership, LightReach eliminates upfront costs while offering a 90% production guarantee and complete system protection throughout your agreement.
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 at 23.9¢ per kWh—45% above national average—Maine homeowners face some of the highest energy costs in the nation.
Solar systems typically pay for themselves in 6.5 years while providing over $97,000 in 25-year savings. Property tax exemptions and federal credits make solar installation even more attractive financially.
Yes, Maine has net metering through both major utilities: Central Maine Power and Versant Power. Both utilities offer 1:1 net metering, meaning you receive full retail rate credits for excess solar energy sent to the grid.
Excess credits carry over month-to-month but expire after 12 months on a rolling basis, so proper system sizing is important to maximize benefits.
Yes, solar panels increase home value in Maine. Research from Zillow shows solar panels increase home value by 4.1% nationally, with similar benefits expected in Maine’s strong real estate market.
Maine’s property tax exemption means you won’t pay additional taxes on the value solar adds to your home, making the investment even more attractive for homeowners looking to increase property value while reducing energy costs.
Solar systems in Maine typically cost $19,004 after federal tax credits for an average 8.5 kW system that offsets 100% of home electricity usage.
Before incentives, systems average $27,148, but the 30% federal tax credit reduces costs significantly. With Maine’s high electricity rates at 23.9¢ per kWh, most homeowners see payback periods around 6.5 years.
Solar is financially worth it in Maine due to the state’s high electricity rates at 23.9¢ per kWh—45% above the national average. Most homeowners achieve payback periods around 6.5 years while generating over $97,000 in 25-year savings.
Maine’s property tax exemption protects solar owners from increased taxes on added home value, while federal tax credits reduce upfront costs by 30%. Rising utility rates make solar’s fixed energy costs increasingly valuable over time.
We believe Palmetto Solar is the best solar company in Maine based on our national experience and local expertise. As a company serving 31 states with over 20,000 customers, we combine proven experience with Maine-specific knowledge.
We offer some of the industry’s best financing options and work with a trusted network of local installers who understand Maine’s unique solar challenges, from snow load requirements to permitting processes across the state.