Portland, ME Solar Panels
Solar Power in Portland
If you’re a Portland, ME homeowner thinking about solar, you’re not alone — and the numbers help explain why. Maine’s electricity rates have climbed 42% between 2020 and 2024, now sitting at 23.89 cents per kWh, well above the national average. For Portland homeowners, that trend is worth paying attention to.
This guide walks you through what solar panel installation actually looks like for Portland homeowners — from how the process works to what you can realistically expect along the way.
How Much Do Solar Panels Cost in Portland, ME?
Based on real installation data from Portland and nearby communities like South Portland, Scarborough, Westbrook, and Falmouth, this calculator gives you an honest, localized estimate of what solar installation costs for a home like yours.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Maine electricity rates have jumped 42% since 2020 — now at 23.89¢/kWh, well above the national average, making solar a smart way to stabilize your energy costs.
- Portland homeowners can save an average of $98,000 over 25 years with solar, with a payback period of around 9 years based on real local installation data.
- Maine offers strong solar incentives including net metering, a full property tax exemption, and a 5.5% sales tax exemption — reducing your overall cost of going solar.
Portland Electricity Prices
Portland homeowners are paying more for electricity than most of the country — and the gap keeps growing.
Maine’s electricity rates rose from 17.0 cents per kWh in 2021 to 23.9 cents per kWh in 2024 — a 41% increase in just three years. Over that same period, the national average climbed from 13.7 to just 16.5 cents per kWh.
Solar panel installation allows homeowners to generate their own electricity, reducing how much power they need to buy from the grid. When local rates are this high, that offset becomes especially meaningful.
Solar systems are built to last 25 years or more. Locking in a lower cost of electricity today can provide real, long-term value — regardless of where Maine utility rates go from here.
Price of Energy: Maine vs National Average
Portland Area Utility Providers
In Portland, ME, Central Maine Power is the primary electricity provider. Based on 2023 data, Central Maine Power’s rate is 27.50¢ per kWh — just above Maine’s 2023 state average of 27.40¢ per kWh.
Both figures are significantly higher than the 2023 national average of 16.0¢ per kWh. Maine’s energy mix, aging grid infrastructure, and reliance on imported fuels all contribute to keeping local electricity costs elevated compared to the rest of the country.
When electricity costs this much per kWh, generating your own power through solar can meaningfully reduce what you pay each month — giving Portland homeowners a way to stabilize their energy costs over the long term.
Portland Utilities Electricity Rates
Maine Solar Incentives
Portland homeowners still have access to meaningful solar incentives in Maine — including net metering, property tax exemptions, sales tax exemptions, and battery rebates through Efficiency Maine.
Maine’s incentive landscape covers a range of programs. Residential customers can benefit from one-to-one net energy billing credits, a full property tax exemption on solar equipment, and a 5.5% sales tax exemption on solar purchases. Low-income households may also qualify for the Maine Solar for All program.
Note: the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. State incentives still apply. With a LightReach lease, Palmetto handles the commercial ITC and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Federal Battery Storage Tax Credit (25D) | Tax Credit | A 30% federal tax credit on the cost of new residential battery storage systems sized 3 kWh or larger, with no cap on the credit amount. | Learn More |
| Federal Electrical Panel Upgrade Tax Credit (25D — Solar-Related) | Tax Credit | A 30% uncapped federal tax credit for electrical panel upgrades performed in conjunction with a qualifying rooftop solar installation. | Learn More |
| Maine Net Energy Billing (NEB) | Net Metering | Maine’s Net Energy Billing program provides residential solar customers with one-to-one kWh bill credits for excess electricity exported to the grid, with credits rolling over monthly for up to 12 months. | Learn More |
| Renewable Energy Investment Exemption (Property Tax Exemption) | Property Tax Exemption | Maine exempts solar panels, battery storage, and related renewable energy equipment from property tax assessment, preventing your property taxes from rising due to a solar installation. | Learn More |
| Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Maine exempts solar energy equipment from the state’s 5.5% sales tax, providing an automatic upfront savings on the purchase of solar panels and related components. | Learn More |
| Efficiency Maine Small Battery Incentive Program (Demand Response) | Rebate | Efficiency Maine compensates residential and small business battery owners approximately $100 per kW of average discharge during summer demand response events, paid out annually each December. | Learn More |
| Efficiency Maine Energy Storage System Project Program (Commercial) | Rebate | Commercial, nonprofit, institutional, and government customers with demand metering can receive up to $200 per kW per year for qualifying new battery systems that reduce summer peak demand, with a maximum annual incentive of $600,000. | Learn More |
| Maine Solar for All Program (Low-Income Households) | Rebate | A $62 million EPA-funded program providing financial assistance for rooftop solar, community solar, and battery storage to low-income and disadvantaged Maine households, with benefits expected to reach participants in 2026. | Learn More |
| Efficiency Maine PACE Financing (Solar) | Rebate | Efficiency Maine offers Property Assessed Clean Energy (PACE) financing with low or no down payment and below-market interest rates for low-income Maine homeowners looking to install solar. | Learn More |
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 in Portland 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 Portland 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. 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. Residents of Portland can contact their 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. Portland homeowners should contact the 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 Portland 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 in Portland 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. Portland 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 households in Portland 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. Portland 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.
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 long summer days boost solar production, while snowy winters reduce it. But like Seattle or Boston, Portland gets enough annual sunlight to make solar a smart, worthwhile investment.
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 thousands of solar installations across the U.S. — right down to the address level. Explore the heatmap below to see how many of your Portland neighbors have already made the switch to solar. Your community might surprise you!
Leasing Solar Panels
If you’d prefer not to pay for your solar system upfront, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program — available to homeowners served by both Versant Power and Central Maine Power in Maine.
With a PPA, you don’t own the system. Instead, you agree to purchase the electricity it generates at a set rate per kilowatt-hour (kWh). There’s no large upfront cost, and Palmetto handles all maintenance and monitoring. Because solar panels produce more energy in summer than winter, your PPA bill will naturally be higher in summer months — but so will your utility bill savings. Averaged over the year, the numbers tend to balance out. To learn more about how a PPA compares to other options, visit our solar buy or lease guide.
Compared to a cash purchase, a PPA means you skip the large upfront investment and avoid the responsibility of system upkeep. Palmetto owns the panels, so repairs, performance monitoring, and maintenance are handled for you — giving Portland homeowners a straightforward way to start saving on electricity without taking on the full cost of 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 strong financial sense for Portland, ME homeowners. Maine’s electricity rates have climbed 42% since 2020 — now at 23.89¢/kWh, well above the national average. With 4.5 average peak sun hours per day and state incentives like net metering and property tax exemptions, a typical Portland home can save around $98,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — you can go solar with no money down and start saving from day one.
Yes, Portland, ME has net metering. Both major utility providers serving the area — Central Maine Power and Versant Power — offer 1:1 Net Energy Billing (NEB). For every kilowatt-hour your solar panels send to the grid, you receive a full credit toward future electricity use.
Excess credits roll over monthly and can be used throughout the year. However, any unused credits expire on a rolling 12-month basis — so credits not used within 12 months are forfeited without compensation. Portland homeowners with third-party electric suppliers also benefit, as net metering reduces the amount of energy purchased from the supplier.
Yes, solar panels can increase your home value in Portland, ME. According to a Zillow study, homes with solar panels sell for an average of 4.1% more than comparable homes without them. For a $400,000 home in Portland, that’s roughly $16,400 in added value.
Maine’s full property tax exemption on solar equipment means your property taxes won’t increase due to the added value — making solar one of the few home improvements that boosts resale value without raising your tax bill.
For Portland homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $96–$166/month depending on your home size. Palmetto owns and maintains the system, and passes savings from the commercial tax credit through to you.
If you prefer to own your system outright, a cash purchase for an average Portland home runs approximately $21,000–$35,000. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For most Portland homeowners, solar is worth it financially — especially with Maine’s electricity rates at 23.89¢/kWh, well above the national average. A typical Portland home can save around $98,000 over 25 years.
With Palmetto’s LightReach lease, there’s no upfront investment required. Your monthly lease payment is typically less than your current electricity bill, meaning most Portland homeowners start saving from day one — with no out-of-pocket cost to get started.
Palmetto is a top choice for solar installation in Portland, ME. As a national company with a strong local presence, we bring deep experience, a trusted installer network, and some of the best financing options available — including our LightReach lease with no upfront cost.
We’ve served 20,000+ customers across 31 states and maintain an approval rating over 85%. Portland homeowners benefit from our transparent process, ongoing system monitoring, and a 90% production guarantee — giving you confidence from installation through the life of your system.
Palmetto’s LightReach is an all-inclusive solar lease — one simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. Because Palmetto owns the system, it claims the commercial Investment Tax Credit and passes those savings to you through lower monthly payments.
For a typical 8.50 kW system in Portland, ME, the estimated monthly lease payment is approximately $128/month — often less than your current electricity bill, so most Portland homeowners start saving from day one.