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The federal tax credit is gone for homeowners. Maine has no state solar rebate. But 1:1 net energy billing, statewide property tax exemption, and sales tax exemption still provide real value. Here is the honest math.
Important: The 30% federal solar tax credit (Section 25D) expired December 31, 2025.
Many websites still advertise this credit. Homeowners who buy solar with cash or a loan in 2026 receive $0 in federal tax credits. This guide reflects accurate 2026 incentives only. Learn what happened
A typical 9 kW system costs $27,450 and pays for itself in approximately 15-17 years in CMP territory or 12-14 years in Versant territory. Maine has no state rebate and the federal 25D ITC is expired. But 1:1 net energy billing, statewide property tax exemption, and 5.5% sales tax exemption deliver over $30,000 in 25-year savings. For homeowners who want $0 down, a solar PPA or lease is the strongest option — the third-party owner still captures the 30% Section 48 ITC.
Avg. System Cost
$27,450
9 kW system
Payback (CMP)
15-17 yrs
$0.27/kWh territory
Payback (Versant)
12-14 yrs
$0.32/kWh territory
Sales Tax Saved
$1,510
5.5% exempt
No state rebate, no federal ITC for homeowners. But 1:1 NEB, statewide tax exemptions, and third-party ITC access still make solar viable.
1:1 retail rate for rooftop solar
Maine rooftop solar receives full 1:1 retail-rate bill credits. Credits roll over monthly and are trued up annually at avoided cost. LD 1777 did NOT change rooftop NEB — only community solar.
100% exempt statewide
Solar energy equipment is 100% exempt from property tax assessment statewide in Maine. Unlike New Hampshire (local option), this is a statewide mandate. Saves approximately $381/year on a 9 kW system.
5.5% exempt on solar
Solar equipment and installation labor are exempt from Maine's 5.5% sales tax. Saves approximately $1,510 on a 9 kW system. Includes panels, inverters, racking, batteries, and labor.
30% ITC for third-party owner
Section 48/48E commercial ITC still available through July 4, 2026. The THIRD-PARTY SYSTEM OWNER (financing company) claims the 30% credit — not the homeowner. Benefit passed through as lower PPA/lease rate.
$0 — Expired Dec 31, 2025
Section 25D expired under the OBBBA (signed July 4, 2025). Homeowners who purchase solar with cash or a loan receive zero federal tax credit in 2026. This was previously 30%.
Efficiency Maine focuses on heat pumps
Maine does not offer a state solar rebate. Efficiency Maine Trust focuses its incentive programs on heat pumps, insulation, and appliances — not solar panels.
Maine has two primary utilities, and your territory significantly affects solar payback. Versant customers pay higher rates, which means each kWh of solar is worth more.
Southern and central Maine (~70% of customers)
Northern and eastern Maine (~30% of customers)
Faster payback: Versant's higher rate means each kWh of solar production offsets $0.05 more than CMP territory.
Without the 25D ITC, the financing landscape has shifted. PPA and lease options are now the strongest choice for many homeowners because the third-party owner still captures the 30% Section 48 credit.
No 25D ITC available. Full cost offset only by NEB credits + tax exemptions. Payback 15-17 years for CMP, 12-14 years for Versant (higher rates).
Standard solar loans at 6-8% APR. No 25D ITC for homeowner. Monthly payments partially offset by NEB credits. Sales tax exemption reduces financed amount.
Third-party owner claims Section 48 ITC (30%). Savings passed to you as below-retail rate. 20-25 year contract. This is the STRONGEST option in Maine post-ITC since the third party still gets the credit.
Third-party claims Section 48 ITC. Fixed monthly payment (may escalate 1-3%/yr). 20-25 year contract.
Explore detailed guides on every aspect of going solar in Maine.
City-by-city pricing breakdown: Portland, Lewiston, Bangor. Interactive calculator included.
How the 25D expiration affects Maine. Why PPA/lease is now the strongest option.
Net Energy Billing details, LD 1777 impact, CMP vs Versant NEB value comparison.
100% property tax exempt statewide, 5.5% sales tax exempt, Section 30C EV charger credit.
Utility-by-utility comparison: rates, NEB credits, interconnection, and payback by territory.
Financing comparison. Why PPA/lease is strongest post-ITC in Maine.
LD 1777 changes, grandfathered vs new projects, renter eligibility.
Pair solar with Efficiency Maine heat pump rebates for maximum electrification savings.
Section 48 ITC still available. MACRS depreciation. Commercial sizing and pricing.
Yes, but with realistic expectations. Without the 25D ITC, a typical 9 kW system in CMP territory pays back in about 15-17 years and saves over $30,000 over 25 years. Versant customers see faster payback (12-14 years) due to higher rates ($0.32/kWh). Maine's 1:1 net energy billing, statewide property tax exemption, and sales tax exemption still provide meaningful value. For $0-down options, PPA/lease agreements are the strongest choice since the third-party owner still captures the 30% Section 48 ITC.
The residential solar tax credit (Section 25D) expired on December 31, 2025, under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. Homeowners who purchase solar with cash or a loan in 2026 receive $0 in federal tax credits. However, third-party owned systems (lease or PPA) still qualify for 30% under the commercial ITC (Section 48/48E), because the financing company — not the homeowner — claims the credit.
Solar panels in Maine cost $2.91-$3.19 per watt installed, with an average of $3.05/W. A typical 9 kW system costs approximately $27,450 before tax exemptions. After sales tax savings (~$1,510), the effective cost is about $25,940. There is no state solar rebate and no federal tax credit for homeowners.
Net Energy Billing is Maine's net metering program. Rooftop solar receives 1:1 retail-rate bill credits for all electricity exported to the grid. Credits roll over monthly and are trued up annually at avoided cost. LD 1777 (2023) changed community solar compensation but did NOT affect rooftop NEB — residential rooftop solar still gets full 1:1 retail credits.
No. LD 1777 (effective January 1, 2024) only changed compensation for community solar projects. Rooftop residential solar continues to receive 1:1 retail-rate NEB credits. New community solar projects now receive a tariff-based rate (below retail) set by the Maine PUC. Existing community solar projects are grandfathered at the previous 1:1 rate.
Versant territory offers faster solar payback due to higher electricity rates ($0.32/kWh vs CMP's $0.27/kWh). At 1:1 NEB, each kWh of solar production is worth $0.32 in Versant territory vs $0.27 in CMP territory. A 9 kW system in Versant territory pays back in approximately 12-14 years, compared to 15-17 years in CMP territory.
Maine offers two major tax benefits: (1) 100% property tax exemption statewide — solar adds value to your home but $0 to your property tax bill, saving approximately $381/year. (2) 5.5% sales tax exemption on solar equipment and installation, saving approximately $1,510 on a typical system. The federal 25D ITC is expired, so these are the only tax benefits available to homeowners.
Yes, through a solar PPA or lease. A third-party company installs and owns the system on your roof at no upfront cost. They claim the 30% Section 48 ITC and pass savings to you through a below-retail electricity rate. This is the strongest option in Maine post-ITC since the third party still gets the credit. Solar loans also offer $0 down but at 6-8% APR with no federal credit.
See exactly what solar costs for your home, your utility territory, and your roof. No commitment, no pressure. Accurate 2026 pricing with no inflated tax credit claims.