Portland, ME
Solar in Portland
Considering home solar panels in Portland, ME? With Maine’s electricity prices 44% higher than the national average at 23.89 cents per kWh, solar installation offers Portland homeowners a practical solution to manage escalating energy costs.
Despite common misconceptions about Maine’s weather, Portland’s coastal climate provides excellent solar potential. Discover how solar installation can benefit your Portland home while reducing your environmental footprint.
Key Takeaways
- Portland residents pay 44% above national average for electricity at 23.9¢/kWh, making solar an attractive solution for reducing high energy costs.
- Maine’s solar incentives include a 30% federal tax credit and property tax exemption, helping Portland homeowners save approximately $8,144 on installation costs.
- Solar panels in Portland can generate significant energy year-round despite northern latitude, with a 10kW system producing up to 14,600 kWh annually.
Solar Cost Calculator
Curious about solar costs in Portland, ME? Our calculator uses real installation data from Portland and surrounding areas like South Portland, Westbrook, and Falmouth to provide accurate estimates. See what your neighbors are paying for clean energy without the guesswork.
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Estimated Investment and Savings
Based on Palmetto Solar installations in Maine. Current electricity rate: 23.9¢/kWh. Assumes 100% credit of retail rate.
Portland Electricity Prices
Portland homeowners face electricity costs that have soared to 23.9 cents per kWh in 2024 – a staggering 44% above the national average.
Maine’s electricity rates have increased dramatically, jumping from 17.0 cents in 2021 to a peak of 27.4 cents in 2023, creating a significant financial burden for Portland residents.
Portland solar installation offers a practical solution to these rising costs. By generating your own clean energy, you can reduce your dependence on expensive grid electricity while benefiting from Maine’s surprisingly effective solar potential.
With solar panels typically lasting 25+ years, Portland homeowners can lock in energy costs and protect themselves from future utility rate increases, creating long-term financial stability and energy independence.
Price of Energy: Maine vs National Average
Portland Area Utility Providers
In Portland, ME, Central Maine Power (CMP) is the primary utility provider, charging 27.5¢ per kWh in 2023 – significantly higher than the national average of 16.0¢ but on par with Maine’s state average of 27.4¢.
Portland residents face these elevated electricity costs due to Maine’s geographic location, limited access to natural gas infrastructure, and regional transmission constraints that impact the entire Northeast energy market.
With electricity prices 72% above the national average, Portland homeowners can benefit from solar installation as a stable, long-term solution that provides protection against future utility rate increases while reducing monthly energy expenses.
Portland Utilities Electricity Rates
Maine Solar Incentives
Portland homeowners can access valuable solar incentives in Maine at both federal and state levels, significantly reducing your initial investment in clean energy.
Maine offers a Property Tax Exemption, ensuring the added value of solar panels won’t increase your property taxes. The state’s Net Energy Billing program also credits you directly for excess electricity your system produces.
These incentives can change over time, so research thoroughly and act promptly to maximize your savings. Contact solar professionals to understand how these programs apply to your specific situation.
Save an average of
$8,144
in solar rebates in Maine
| 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 offers a Property Tax Exemption for solar energy equipment that generates heat or electricity. This incentive allows homeowners to exempt the value of their solar energy systems from property tax assessments, potentially saving hundreds of dollars annually depending on your local property tax rate and system value.
To qualify, your solar system must either: (1) generate energy used entirely on your property, or (2) be connected to the grid where you receive utility bill credits for the energy produced. For systems installed before April 1, 2025, broader eligibility applies. After that date, additional requirements include colocation with net energy billing customers or having an interconnection agreement executed before June 1, 2024. To claim this exemption, you must file a report with your local tax assessor by April 1st of the first property tax year for which you’re claiming the exemption, using forms provided by the State Tax Assessor.
Maine’s Net Energy Billing (NEB) program allows homeowners to offset their electricity bills using energy generated from small renewable systems like solar panels. The program offers two options: the NEB kWh Credit Program (available to all utility customers) and the NEB Tariff Rate Program (available to non-residential customers only). Both programs apply to renewable energy systems under 5 MW in size.
Under the kWh Credit Program, homeowners receive kilowatt-hour credits on their electricity bills for the energy their system produces. These credits can be used to reduce monthly electricity costs, with unused credits expiring after 12 months. Homeowners can either install their own system (like rooftop solar) or participate in a community solar project with other customers. Anyone marketing these projects to homeowners must be registered with the Maine Public Utilities Commission and provide a standardized disclosure form that clearly outlines 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 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.
Despite Portland’s northern latitude and snowy winters, the city receives ample sunshine year-round, making it surprisingly viable for solar energy production with properly designed systems.
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 Installations in Portland
Discover the solar revolution in Portland, ME! We’ve mapped every solar installation in your area, showing how communities are embracing clean energy. Explore our interactive heatmap to see which neighborhoods are leading the charge and find out just how many of your neighbors have already made the switch to solar.
Leasing Solar Panels
In Portland, ME, residents have access to Power Purchase Agreements (PPAs) through both Versant Power and Central Maine Power. With a PPA, you’ll pay for the electricity your solar panels generate at a fixed per-kilowatt-hour rate (like $0.15/kWh) rather than a monthly lease payment, resulting in higher bills during sunny summer months and lower bills in winter.
This option eliminates the upfront investment of purchasing solar panels while still reducing your electricity costs. PPAs offer significant advantages over buying: no maintenance responsibilities, performance guarantees, and immediate savings without waiting for investment payback.
For Portland homeowners seeking the benefits of solar without the financial commitment, Palmetto’s LightReach program provides a hassle-free alternative to traditional ownership with zero upfront costs.
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 financial sense in Portland despite its northern location. With electricity rates 44% above national average at 23.9¢/kWh, solar provides significant savings.
Portland receives ample sunlight year-round, with a 10kW system generating approximately 14,600 kWh annually. Combined with Maine’s property tax exemption and the 30% federal tax credit, most Portland homeowners see their solar investment pay for itself in about 6.4 years.
Yes, Portland, ME has 1:1 net metering available through both Versant Power and Central Maine Power. Excess energy credits are carried over monthly on a per kWh basis and can reduce electricity purchased from third-party suppliers.
Credits expire on a rolling 12-month basis. With Central Maine Power, unused credits are removed after 12 months on a first-in, first-out basis, while Versant Power eliminates all accumulated unused credits at the end of each 12-month period.
Yes, solar panels typically increase home value in Portland, ME. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
Portland homeowners benefit from this value increase without paying additional property taxes, thanks to Maine’s solar property tax exemption. With high electricity rates in the area, prospective buyers increasingly value the long-term energy savings solar provides.
In Portland, ME, solar installation typically costs between $2.70-$3.20 per watt before incentives, with the average system costing $19,004 after the 30% federal tax credit for a medium-sized home.
System costs vary based on home size, energy needs, and roof characteristics. Most Portland homeowners see their solar investment pay off in about 6.4 years, with lifetime savings averaging $97,676 over 25 years.
Solar is financially worthwhile for most Portland homeowners due to Maine’s high electricity rates (23.9¢/kWh) and strong incentives. The average system pays for itself in about 6.4 years.
With $97,676 in average lifetime savings and protection against rising utility costs, solar installation provides excellent long-term value despite Maine’s northern location. The 30% federal tax credit and property tax exemption significantly reduce initial investment costs.
As a national company with a strong local presence in Portland, we at Palmetto provide comprehensive solar solutions with some of the best financing options in the industry. Our established installation network ensures quality workmanship and reliable service.
We focus on creating customized solar systems that maximize Portland homeowners’ savings while navigating Maine’s specific incentives and net metering policies. Our commitment to transparency and customer education has earned us high satisfaction ratings across our 20,000+ installations nationwide.