Solar Guide
Solar in Portland
Portland, Maine homeowners are turning to solar energy as electricity costs continue climbing throughout the state. With Maine’s utility rates ranking 8th highest in the nation at 23.89 cents per kWh—significantly above the national average of 16.6 cents—local residents are discovering how solar panels for home installations can provide meaningful long-term savings.
Whether you’re exploring solar for the first time or ready to make the switch, this comprehensive guide walks you through everything Portland homeowners need to know about solar installation, from local incentives to system selection.
Key Takeaways
- Maine electricity rates jumped 41% since 2021 making solar panels an increasingly smart investment for Portland homeowners.
- Portland solar systems typically pay for themselves in 6.4 years while providing decades of clean energy savings.
- Federal tax credits cover 30% of installation costs reducing the average Portland system cost by over $8,000.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Portland neighborhoods like Deering, West End, and Cape Elizabeth. Get accurate, local pricing based on actual Palmetto installations in your area.
System
Cost
Savings
Portland Electricity Prices
Portland, ME residents face electricity costs well above the national average, making energy bills a growing concern for homeowners.
Maine’s electricity rates jumped from 17.0 cents per kWh in 2021 to 23.9 cents in 2024, while national rates increased more gradually.
Solar panels allow Portland homeowners to generate their own electricity, reducing dependence on the grid and rising utility rates over time.
With decades of sunshine ahead, solar systems provide stable energy costs while Maine’s electricity rates continue their unpredictable upward trend.
Price of Energy: Maine vs National Average
Portland Area Utility Providers
Portland residents rely primarily on Central Maine Power (CMP) for electricity, paying 27.50¢ per kWh in 2023—significantly higher than the national average of 16.0¢ per kWh.
Maine’s high electricity costs stem from limited natural gas infrastructure and heavy reliance on imported energy, making CMP rates among the nation’s highest at 72% above national averages.
These elevated electricity costs create compelling economics for solar energy, as Portland homeowners can generate their own power and reduce dependence on expensive grid electricity over time.
Portland Utilities Electricity Rates
Maine Solar Incentives
Portland homeowners can significantly reduce solar installation costs through federal and state solar incentives in Maine designed to make clean energy accessible.
Maine offers property tax exemptions that prevent increased assessments from solar installations, plus net energy billing programs that credit homeowners for excess electricity sent to the grid.
Research these incentives thoroughly as programs evolve regularly. Acting promptly ensures you capture available benefits while they remain accessible.
$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 panels and related equipment 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 home, providing significant long-term savings since property taxes are paid annually.
To qualify for this exemption, your solar energy equipment must either use all the energy on-site where it’s located, or transmit energy through utility facilities where customers receive bill credits. You must file a report with your local 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 conditions for certain types of solar installations.
Maine’s Net Energy Billing (NEB) program allows homeowners and businesses to offset their electricity bills by generating renewable energy from small solar or other renewable systems up to 5 MW in size. 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 offers two different credit options depending on whether you’re a residential or commercial customer.
For residential customers, the NEB kWh Credit Program provides kilowatt-hour credits that roll over month to month, though unused credits expire after 12 months. Commercial and industrial customers can choose either the kWh credit option or the NEB Tariff Rate Program, which provides dollar credits based on rates set annually by the Maine Public Utilities Commission. For 2025, commercial tariff rates range from about $0.13 to $0.28 per kWh depending on your utility company, customer class, and when your project was developed. If you’re considering a shared solar project, make sure the project sponsor is registered with the state and provides you with the required disclosure form that explains all costs and benefits before you sign up.
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. Despite Maine’s reputation for harsh weather, proper solar systems generate excellent year-round energy production here.
Solar Production in Portland by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.1 average homes (15 kWh/day per home)
- or Run central AC for 15 hours AND power all other appliances
- or Fully charge 4.6 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 1.3 average homes (15 kWh/day per home)
- or Keep your home heating system running for 9 hours
- or Fully charge 2.0 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 9 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 158 trees
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 Portland
We’ve mapped every solar installation across the United States to create this interactive heatmap of Portland, ME. Explore the hexagons below to discover how many neighbors in your community have already made the switch to clean energy!
Leasing Solar Panels
Portland residents served by both Central Maine Power and Versant Power can access Palmetto’s Power Purchase Agreement (PPA) option, making solar accessible without the large upfront investment of purchasing a system outright.
With a PPA, you pay a fixed rate per kilowatt-hour for the electricity your panels produce—typically lower than your current utility rate—while Palmetto handles all system maintenance and monitoring. This means no unexpected repair costs or performance worries on your end.
Compared to paying cash and managing maintenance yourself, a PPA provides predictable energy costs and professional system care throughout the agreement term. Learn more about solar financing options or explore our LightReach program for additional ways to go solar in Portland.
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 financial sense in Portland, ME. With Maine’s electricity rates at 23.9¢/kWh—significantly above the national average—solar systems typically pay for themselves in 6.4 years while providing decades of savings.
Federal tax credits cover 30% of system costs, and Maine’s property tax exemption prevents increased assessments from solar installations. Portland homeowners can expect around $98,000 in savings over 25 years.
Yes, Portland has net metering through Maine’s Net Energy Billing (NEB) program. Portland residents served by Central Maine Power and Versant Power receive 1:1 credit for excess solar energy sent to the grid.
Excess credits roll over monthly and expire after 12 months. Both utilities provide kilowatt-hour credits that reduce future electricity purchases, making solar systems more valuable for Portland homeowners.
Yes, solar panels increase home value in Portland, ME. Research shows solar panels add approximately 4.1% to home values nationally, while Maine’s property tax exemption means you won’t pay additional taxes on this increased value.
Portland’s high electricity costs make solar particularly attractive to buyers who recognize the long-term savings potential. Solar homes often sell faster and command premium prices in Maine’s competitive real estate market.
Solar costs in Portland, ME range from $14,685 to $24,238 after federal tax credits, depending on home size and energy needs. A typical 8.5 kW system costs around $19,004 after the 30% federal tax credit.
System costs vary by home size: small homes (up to 2,000 sq ft) average $14,685, medium homes (2,000-3,000 sq ft) average $19,004, and large homes (over 3,000 sq ft) average $24,238 after incentives.
Yes, solar is financially worth it in Portland, ME. With Maine’s electricity rates at 23.9¢/kWh—well above the national average—solar systems typically pay for themselves in 6.4 years while providing decades of savings.
Portland homeowners save approximately $98,000 over 25 years after accounting for system costs and federal tax credits. Rising electricity rates make solar even more valuable as a hedge against future energy price increases.
We’re Palmetto Solar, a national company with local expertise serving Portland homeowners since 2011. We’ve completed over 20,000 installations across 31 states with an 85%+ approval rating, combining proven experience with personalized service.
Our competitive advantage includes industry-leading financing options and a trusted installation network that ensures quality workmanship. We handle everything from permits to activation, making solar simple for Portland residents looking to reduce their energy costs.