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Both 25D and 25C are dead. Oil is $3.82/gallon. Efficiency Maine rebates and Propel $0-down financing are the only game left. Here is how to bundle solar + heat pump to eliminate your oil bill and cut your electric bill to near zero.
60%+
ME Homes on Oil
$3.82
Oil per Gallon
$0
Federal ITC (Expired)
$2K-$6K
Eff. Maine Rebates
1:1
NEB Net Metering
The One Big Beautiful Bill Act (signed July 4, 2025) killed both residential energy tax credits. This fundamentally changes the math for every Maine homeowner.
The 30% residential solar Investment Tax Credit expired December 31, 2025. If you buy solar with cash or a loan in 2026, you get $0 back from the IRS.
On a $24,400 solar system, that is $7,320 you no longer receive.
The energy efficiency credit (including heat pumps) also expired December 31, 2025. The $2,000/year heat pump credit is gone.
On a $12,000 heat pump system, that is $2,000 you no longer receive.
The commercial/third-party ITC (Section 48/48E) is still available for projects that begin construction before July 4, 2026. This means PPA providers, lease companies, and Propel financing partners can still claim the 30% ITC and pass those savings to you as a lower payment. This is now the only path to a federal tax benefit for residential solar in Maine.
Oil displacement is THE story. More than 60% of Maine homes heat with oil — the highest rate of any state. Combine that with high electricity rates and strong net metering, and the bundle math is compelling even without federal credits.
The average Maine home burns 800 gallons of heating oil per year at $3.82/gallon. That is $3,056/year going up in smoke. Heat pumps cut this to $0 (with solar covering the electricity).
A 2-zone cold-climate heat pump uses about 5,400 kWh/year. At CMP rates ($0.27/kWh), that is $1,458/year. But solar panels generate this electricity for free, reducing your net heating cost to near $0.
An 8 kW solar system produces 9,600 kWh/year. The heat pump uses 5,400 kWh. That leaves 4,200 kWh surplus credited at 1:1 retail through NEB to offset the rest of your electric bill.
$434/month. Rising with oil and electric rate increases.
$16/month. Mostly fixed — solar produces for 25+ years.
Annual savings: ~$5,024/year (CMP territory, oil-heated home)
With federal credits gone, Efficiency Maine rebates are the primary incentive for the heat pump portion of your bundle. These are per-unit rebates applied at point of sale.
| Income Tier | Per Unit | 2-Zone Bundle | Max (3 units) | Eligibility |
|---|---|---|---|---|
| Standard | $1,000 | $2,000 | $3,000 | All Maine residents |
| Moderate | $2,000 | $4,000 | $6,000 | 80-150% AMI |
| Low Income | $3,000 | $6,000 | $9,000 | Below 80% AMI |
No state solar rebate in Maine
Efficiency Maine focuses on heat pumps, not solar. There is no state rebate for the solar portion of a bundle. Solar savings come from NEB net metering credits ($0.27-$0.32/kWh) and the statewide property tax exemption (~$339/year).
Maine rooftop solar receives full retail-rate bill credits for every kWh exported. This is the engine that makes the bundle work.
Summer credits cover winter heat pump demand
Solar production peaks in summer when heat pump demand is low. NEB credits banked during June-August cover the higher electricity consumption during January-March heating season. Over a full year, production exceeds consumption by 4,200 kWh.
Federal Credits: Dead
Section 25D (solar) and 25C (heat pump) expired December 31, 2025. The only federal option is Section 48E for third-party PPA/lease/Propel solar (must begin construction before July 4, 2026).
| Program | Amount | Your Value | Applies To | Status |
|---|---|---|---|---|
Efficiency Maine HP Rebate (Standard) Any income. Up to 3 units ($3K max). Applied at point of sale by registered contractor. | $1,000/unit | $2,000 | Heat Pump | Active |
Efficiency Maine HP Rebate (Moderate) 80-150% AMI. Income verification required. Up to 3 units ($6K max). | $2,000/unit | $4,000 | Heat Pump | Active |
Efficiency Maine HP Rebate (Low-Income) At or below 80% AMI. Up to 3 units ($9K max). Applied at point of sale. | $3,000/unit | $6,000 | Heat Pump | Active |
NEB 1:1 Net Metering CMP $0.27/kWh or Versant $0.32/kWh. Rooftop solar protected under existing law. | Full retail rate credit | $2,592-$3,072/yr | Solar | Active |
Property Tax Exemption Statewide mandate (36 M.R.S. section 655). Solar adds $0 to property tax. | 100% statewide | ~$339/yr | Solar | Active |
Section 48E (PPA/Lease/Propel) Third-party owner claims ITC. Must begin construction before July 4, 2026. | 30% ITC to system owner | ~30% lower payment | Solar | Active |
Section 25D (homeowner solar ITC) Expired December 31, 2025. No residential solar tax credit. | $0 | $0 | Solar | Expired |
Section 25C (HP tax credit) Expired December 31, 2025. No residential HP tax credit. | $0 | $0 | Heat Pump | Expired |
Here is the real math for an 8 kW solar system plus a 2-zone cold-climate mini-split heat pump in Maine.
Standard Income
$34,400
$2K rebate
Moderate Income
$32,400
$4K rebate
Low Income
$30,400
$6K rebate
Propel financing is uniquely powerful in the post-ITC world because the third-party owner still claims Section 48E. Here is how the three main paths compare.
Advantages
Drawbacks
Advantages
Drawbacks
Advantages
Drawbacks
Section 48E Deadline: July 4, 2026
Propel and PPA rates will increase after this date because the 30% ITC disappears. If you want $0-down solar with the built-in discount, start the process now. Propel uses Silfab 440W panels (American-made, FEOC-compliant) which qualifies for the full Section 48E credit.
Your utility territory significantly impacts bundle economics. Higher Versant rates mean faster solar payback but higher heat pump operating costs.
| Metric | CMP | Versant |
|---|---|---|
| Electric Rate | $0.27/kWh | $0.32/kWh |
| Solar NEB Value (8 kW) | $2,592/yr | $3,072/yr |
| HP Annual Electric Cost | $1,458/yr | $1,728/yr |
| Net HP Savings vs Oil | $1,598/yr | $1,328/yr |
| Solar Payback (cash, no ITC) | ~15-17 years | ~12-14 years |
| Bundle Payback (w/ oil savings) | ~8-10 years | ~7-9 years |
| Customer Share | ~70% | ~30% |
Bottom line: Versant customers see faster bundle payback
Despite higher heat pump operating costs ($270/year more than CMP), Versant customers have higher solar NEB credit value ($480/year more than CMP). The net effect: Versant territory sees bundle payback approximately 1 year faster. Both territories see strong bundle economics vs. oil heating.
The biggest financial benefit is not the solar — it is eliminating $3,000+ per year in heating oil. Solar just makes the heat pump electricity free.
800 gal x $3.82/gal. No more oil deliveries.
5,400 kWh x $0.27 (CMP). Offset by solar.
9,600 kWh x $0.27 (CMP). Covers HP + household.
CMP territory. Versant: ~$3,700/yr (higher rates both ways).
Propane and resistance heat savings are even larger
This analysis uses oil at $3.82/gal. If you heat with propane ($3.38/gal, ~$2,850/year) or electric resistance ($0.27/kWh, ~$4,100/year), the economics shift but the bundle still wins. Electric resistance customers see the largest total savings because heat pumps are 2.8x more efficient.
$0 down, 30% built-in discount via Section 48E
Read guide$2.91-$3.19/W. Full pricing breakdown.
Read guideEfficiency Maine: $1K-$3K per unit
Read guideWhich territory saves more on solar?
Read guideNEB 1:1 retail credits explained
Read guideBest financing in the post-ITC world
Read guideNo. Section 25D (residential solar ITC) and Section 25C (heat pump/efficiency credit) both expired December 31, 2025. Homeowners who buy with cash or a loan get $0 back from the IRS. The only federal option is Section 48/48E, where a third-party system owner (not you) claims a 30% ITC on solar installed via PPA, lease, or Propel financing. This must begin construction before July 4, 2026.
Propel is a transitional ownership program. A third-party owner holds the solar system for 5 years, claiming the 30% Section 48E ITC and passing that savings into your lower monthly payment. At year 5, ownership transfers to you via an Early Buyout Option (EBO) at a pre-set price built into your loan. After that, you own the system outright. Propel requires American-made Silfab 440W panels (FEOC-compliant) and is available in Maine with $0 down.
An 8 kW solar system costs approximately $24,400 ($3.05/W). A 2-zone cold-climate mini-split heat pump system costs approximately $12,000. Total bundle: approximately $36,400 before incentives. Efficiency Maine heat pump rebates reduce this by $2,000-$6,000 depending on income. With Propel, the solar portion is $0 down with a ~30% discount built into payments.
A typical Maine home uses about 800 gallons of heating oil per year at $3.82/gallon, costing approximately $3,056/year. A 2-zone cold-climate heat pump uses about 5,400 kWh of electricity per year. At CMP rates ($0.27/kWh), that is $1,458/year. Net annual savings from fuel switching: approximately $1,598/year for CMP customers, $1,328/year for Versant customers (higher electric rate offsets some savings).
Not month-by-month. Solar production is lowest in winter when heat pump demand peaks. However, NEB (Net Energy Billing) credits earned during high-production summer months roll forward to offset winter bills. Over a full year, an 8 kW solar system produces 9,600 kWh, which exceeds the 5,400 kWh a 2-zone heat pump uses annually. The surplus 4,200 kWh offsets your other household electricity.
Efficiency Maine offers per-unit rebates: $1,000/unit for any income (standard), $2,000/unit for moderate income (80-150% AMI), and $3,000/unit for low income (at or below 80% AMI). Maximum 3 units per household. A 2-zone system qualifies for $2,000-$6,000 in rebates depending on income tier. Applied at point of sale through registered Efficiency Maine contractors.
Versant territory ($0.32/kWh) produces faster solar payback because each kWh generated is worth more in NEB credits. However, CMP territory ($0.27/kWh) has lower heat pump operating costs. For the combined bundle, Versant customers see slightly faster payback (7-9 years vs 8-10 years for CMP) because the solar offset value outweighs the higher HP operating cost.
If you heat with oil and want immediate savings, start with the heat pump. Oil savings are immediate ($1,300-$1,600/year). Then add solar to offset the new electricity load. If you can do both at once, a bundled installation lets you size the solar system to cover the heat pump from day one and often qualifies for contractor discounts on the combined project.
Section 48E allows third-party solar system owners (PPA providers, lease companies, Propel) to claim a 30% Investment Tax Credit. Projects must begin construction before July 4, 2026. After that deadline, PPA and Propel rates will increase because the ITC subsidy disappears. If you want $0-down solar with the ~30% built-in discount, you need to start before this deadline.
Yes. Maine has a statewide property tax exemption for solar energy equipment (36 M.R.S. section 655). Adding a $24,400 solar system to your home adds $0 to your property tax bill. At Maine average effective property tax rate of 1.39%, this saves approximately $339 per year. This applies regardless of whether you also have a heat pump. The exemption is permanent and statewide.
For Maine winters, you need cold-climate rated equipment. Top options: Mitsubishi Hyper-Heat (operates to -13 degrees F, market leader in Maine), Fujitsu Halcyon XLTH (operates to -15 degrees F, best for northern Maine Zone 6), and LG Red Series (operates to -13 degrees F, good value). All three are Efficiency Maine qualified. Northern Maine (Caribou, Presque Isle) should prioritize models rated to -15 degrees F or consider dual-fuel backup.
Many Maine homeowners keep their oil furnace as backup for extreme cold days but run the heat pump as primary heat. This reduces oil usage by 80-90%. Some homeowners with well-insulated homes and adequate multi-zone coverage eliminate oil entirely. In northern Maine (Zone 6, design temps of -12 to -18 degrees F), a dual-fuel approach is recommended, keeping the oil system as emergency backup.
Get a free custom bundle quote for your Maine home. We will size solar + heat pump together, apply Efficiency Maine rebates, and show you Propel financing options before the July 4 deadline.
