Portland, ME Solar Panels
Solar Power in Portland
Portland homeowners are turning to solar as Maine electricity prices climb—rising 42% since 2020. Understanding your options for home solar panels can help you take control of rising energy costs.
This guide breaks down everything Portland residents need to know about solar installation—from local incentives to system sizing—helping you make an informed decision about your energy future.
How Much Do Solar Panels Cost in Portland, ME?
Our solar cost calculator uses real installation data from Portland homes—including neighborhoods like Deering, Munjoy Hill, and West End—to show you accurate pricing. Get personalized estimates based on actual local projects, not national averages.
System
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You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Portland receives excellent sunlight for solar with 4.5 peak sun hours daily, producing strong returns despite Maine’s coastal climate.
- Maine electricity rates jumped 45% since 2020 to 23.9¢/kWh, making solar’s fixed energy costs increasingly valuable over time.
- A typical Portland solar system pays for itself in under 9 years while delivering nearly $98,000 in savings over 25 years.
Portland Electricity Prices
Maine’s electricity rates have climbed significantly in recent years, making Portland one of the more expensive markets for residential power in the country.
Between 2021 and 2023, Maine electricity rates jumped from 17.0 to 27.4 cents per kilowatt-hour—a 61% increase. While rates dropped slightly to 23.9 cents in 2024, they remain 45% higher than the national average.
Solar panels generate electricity at a fixed cost, which means your rate per kilowatt-hour stays consistent over the life of your system—typically 25 years or more. This stability can help offset exposure to future rate increases.
Over two decades, the difference between rising utility rates and stable solar production costs can amount to substantial savings. Many Portland homeowners view solar as a long-term hedge against electricity price volatility in Maine’s energy market.
Price of Energy: Maine vs National Average
Portland Area Utility Providers
Portland, ME residents are served by Central Maine Power (CMP), which charged 27.5¢ per kWh in 2023—significantly higher than the national average of 16.0¢ per kWh.
Maine’s electricity costs reflect the state’s reliance on imported energy and limited natural gas infrastructure. CMP’s rates align closely with Maine’s state average of 27.4¢ per kWh.
Higher electricity rates mean Portland homeowners pay more each month, but also see faster savings when switching to solar. Generating your own power helps protect against future rate increases.
Portland Utilities Electricity Rates
Maine Solar Incentives
Maine offers valuable programs to help Portland homeowners reduce solar installation costs. Explore available solar incentives in Maine below.
Portland residents can access state-level benefits including property tax exemptions and net energy billing credits. These programs work together to lower upfront costs and provide ongoing savings on electricity bills.
Incentive programs can change as policies evolve. Research current offerings carefully and consider acting while these benefits remain available to Maine homeowners.
| 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 qualifying solar installations. This means that when you add solar panels to your home, the added value they bring to your property won’t increase your annual property tax bill. You’ll enjoy the benefits of solar energy and increased home value without paying extra in property taxes.
To qualify for this exemption, your solar equipment must generate heat or electricity, and the energy must be used on-site at your property. Alternatively, if your system sends energy to the grid, you must receive utility bill credits through 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. Once approved, this exemption continues for as long as your solar system remains in place and meets the requirements.
It’s important to note that Maine recently updated this law. For solar installations with interconnection agreements signed after June 1, 2024, there are additional requirements for systems that send energy to the grid. If you’re considering solar, discuss the specific exemption requirements with your installer to ensure your system qualifies. This exemption applies to the solar equipment itself and helps make solar energy more affordable by protecting you from higher property taxes.
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 through all Maine electric utilities and covers renewable generators up to 5 MW in size.
There are two program options available. The kWh Credit Program is open to all customers (residential and commercial) and provides kilowatt-hour credits that roll over month-to-month, expiring after 12 months if unused. The Tariff Rate Program is available only to commercial and industrial customers and provides dollar credits based on rates set annually by the Maine Public Utilities Commission—for 2025, these rates range from approximately $0.13 to $0.29 per kWh depending on your customer class, utility, and project qualification status.
If you’re considering a shared solar project marketed by a third party, the company must be registered with the Maine PUC and provide you with a disclosure form detailing all costs and benefits. This consumer protection ensures you understand exactly what you’re signing up for before making a commitment. The program is governed by state law and PUC rules, with no application deadlines, though unused credits do expire after one year.
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 QuotePortland Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Portland’s coastal climate brings cloudy winters and bright summers, affecting seasonal solar output. Despite New England’s reputation for gray skies, Portland receives ample sunlight for excellent year-round solar performance.
Solar Production in Portland by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average 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 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 Panel Systems in Portland
We’ve mapped every solar installation across Portland to help you see which neighborhoods are embracing clean energy. Explore this interactive map to discover how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
Portland homeowners served by Central Maine Power or Versant Power can access solar through a Power Purchase Agreement (PPA). With a PPA, you pay only for the electricity your panels generate at a set rate per kilowatt-hour—typically lower than utility rates—with no upfront costs.
A PPA means no system purchase, no maintenance responsibilities, and predictable energy costs. Your monthly payment varies with production, so you pay more in sunny months and less in winter—but your annual costs remain consistent and typically lower than traditional utility bills.
Learn more about how LightReach makes solar accessible without the investment, giving Portland residents immediate savings and long-term energy stability.
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 strong financial sense in Portland. With electricity rates at 23.9¢/kWh—45% above the national average—and 4.5 peak sun hours daily, Portland homes see excellent returns on solar investments.
A typical system pays for itself in under 9 years while delivering nearly $98,000 in savings over 25 years. Maine’s property tax exemption and net energy billing program further improve the economics for Portland homeowners.
Yes, Portland has net metering through Maine’s Net Energy Billing program. Both Central Maine Power and Versant Power offer 1:1 credit for excess solar energy sent to the grid, meaning you receive full retail rate credit for every kilowatt-hour your system produces.
Credits roll over month-to-month on a 12-month cycle. Any unused credits expire after one year. This program helps Portland homeowners maximize their solar investment by ensuring no excess production goes to waste during high-generation months.
Yes, solar panels increase home value in Portland. A Zillow study shows homes with solar panels sell for 4.1% more than comparable homes without solar—adding roughly $16,400 to a median-priced Portland home.
Maine’s property tax exemption ensures your solar system won’t raise your annual property taxes, letting you enjoy the added value without higher tax bills. Buyers increasingly value solar for its energy savings and environmental benefits, making solar-equipped homes more attractive in Portland’s market.
Solar installation costs in Portland typically range from $21,000 to $35,000 for most homes, depending on your system size and energy needs. The average Portland home uses an 8.5 kW system costing around $27,148, or about $3.19 per watt.
Your final cost depends on your roof characteristics, energy usage, and chosen equipment. Portland homeowners can access Maine’s property tax exemption and net energy billing to improve their investment returns.
Yes, solar is financially worth it in Portland. With electricity rates at 23.9¢/kWh—45% above the national average—a typical 8.5 kW system costs around $27,148 and delivers nearly $98,000 in savings over 25 years.
The system pays for itself in under 9 years through monthly savings of approximately $223. Maine’s property tax exemption and net energy billing program protect your investment while high electricity rates make solar’s fixed energy costs increasingly valuable over time.
At Palmetto Solar, we combine national scale with local expertise to deliver quality solar installations across Portland. We offer some of the industry’s best financing options and work with a trusted network of professional installers.
Our team guides you through every step—from design to activation—making the switch to solar straightforward. We focus on transparent pricing, reliable service, and long-term customer relationships to help Portland homeowners achieve energy independence.