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The federal residential tax credit is gone and Maine has no state solar rebate — but 1:1 Net Energy Billing, 100% property tax exemption, and some of the highest electricity rates in the country still make solar a solid long-term investment. Here is every incentive available to Maine homeowners right now.
1:1 Retail
Net Energy Billing
$0.27-$0.32
Avg Electric Rate
100%
Property Tax Exempt
12-17 yrs
Avg Payback
Maine homeowners no longer receive a federal solar tax credit (Section 25D expired Dec 31, 2025), and there is no state solar rebate. However, Maine still offers 1:1 Net Energy Billing at full retail rate ($0.27-$0.32/kWh), 100% statewide property tax exemption under 36 M.R.S. §655, and sales tax exemption on solar equipment (5.5%). For a typical 9 kW system at $3.05/W ($27,450), these incentives combine to save $1,500+ in year one and $30,000-$45,000 over 25 years depending on your utility.
A quick visual overview of every Maine solar incentive — what is active, what has a deadline, and what is gone.
$0.27-$0.32/kWh
Full 1:1 retail credit for rooftop solar. Protected from LD 1777 changes. Credits roll over monthly, annual true-up.
~$2,430-$2,880/yr
100% exempt
Solar value 100% exempt from property tax assessment statewide under 36 M.R.S. §655. All municipalities must honor this.
~$381/yr permanently
5.5% saved
Maine exempts solar energy equipment from the 5.5% state sales tax. Automatic at point of sale.
~$1,510 on a 9 kW system
30%+ ITC
Third-party system owners (lease/PPA companies) claim 30% commercial ITC. Passed to you as lower monthly rate.
Lower PPA/lease rate
$0
Expired December 31, 2025. No federal credit for homeowner cash or loan purchases.
$0
Efficiency Maine does NOT offer a solar rebate. Their rebate programs focus exclusively on heat pumps ($1,000-$3,000/unit).
The expiration of the federal residential solar tax credit (Section 25D) on December 31, 2025 was a blow to homeowners nationwide. For Maine residents, this means there is no longer a 30% federal credit to offset the cost of a cash or loan solar purchase. On a $27,450 system, that is $8,235 gone.
Maine also does not have a state solar rebate. Efficiency Maine focuses its incentive programs on heat pumps and weatherization, not solar panels. And the Solar for All program was terminated under the current federal administration.
So why is solar still worth it? Because Maine's electricity rates do the heavy lifting. CMP charges ~$0.27/kWh and Versant charges ~$0.32/kWh — both well above the national average of ~$0.16/kWh. Every kilowatt-hour your panels produce offsets electricity that costs 70-100% more than the national average. That rate differential, combined with 1:1 NEB credits, is the engine that drives Maine solar economics.
Any solar company telling you the "30% federal tax credit is still available" for homeowner-owned systems is either uninformed or deliberately misleading you. Section 25D expired on December 31, 2025. If a solar salesperson claims otherwise, walk away.
Exception: Section 48/48E commercial credits are still available for third-party system owners (solar lease and PPA companies) on projects beginning construction before July 4, 2026. The homeowner does not claim this credit directly — the financing company does, and passes savings through as a lower rate.
Maine electricity rates ($0.27-$0.32/kWh) are 70-100% above the national average. A 9 kW system saves ~$2,430/yr (CMP) to ~$2,880/yr (Versant) — every year for 25+ years.
Maine rooftop solar gets 1:1 retail-rate NEB credits — better than NH (~85%), RI (80%), or MA (~60% under NEM 3.0). LD 1777 only changed community solar, not rooftop.
Over 60% of Maine homes heat with oil ($3.82/gal). Pairing solar with a heat pump eliminates both your electric bill and heating fuel costs — a powerful combination.
Net Energy Billing (NEB) is the single most important financial mechanism for residential solar in Maine. It provides 1:1 retail-rate credits for every kilowatt-hour of solar electricity you export to the grid — and with Maine's high rates, those credits add up fast.
$0.27/kWh
NEB credit rate (~70% of Maine)
For a 9 kW system producing ~10,800 kWh/yr, typical homeowner offsets 80-90%, saving ~$2,430/yr. Payback: 15-17 years.
$0.32/kWh
NEB credit rate (~30% of Maine)
Same 9 kW system = ~$2,880/yr in bill savings. $0.05/kWh more per credit = 3-4 year faster payback (12-14 years).
LD 1777 (2023) did NOT change rooftop solar compensation. The law only changed how new community solar projects (filed after January 1, 2024) are compensated, moving them to a tariff-based rate set by the Maine PUC. If you install solar on your own roof, your 1:1 retail NEB credits are fully protected. Do not let anyone tell you otherwise.
Before your solar system can feed power to the grid, your utility must approve interconnection:
Application
Day 1
Installer submits interconnection application
Review
2-6 weeks
Utility reviews system specs
Installation
1-3 days
System installed and inspected
PTO
2-4 weeks
Permission to operate granted
Total timeline: 4-10 weeks from application to PTO. NuWatt handles all paperwork.
Under 36 M.R.S. §655, Maine exempts solar energy equipment from property tax assessment in every municipality statewide. Unlike New Hampshire, where the property tax exemption is a local option that only ~66% of towns have adopted, Maine's exemption is mandatory and permanent.
National research shows solar panels add approximately $10,000-$20,000 to home resale value. In Maine, where electricity is expensive, the premium tends to be meaningful. Without the exemption, that added value would be taxed — but with 36 M.R.S. §655, you pay $0 extra in property taxes.
At Maine's average mill rate (~18.1 mills), a $21,000 value increase would cost approximately $381/year in additional property taxes. Over 25 years, the exemption saves approximately $9,500+.
Calculation: $21,000 assessed value x 18.1 mills = $381/yr x 25 years = ~$9,525
Maine exempts solar energy equipment from the state's 5.5% sales and use tax. This applies to solar photovoltaic equipment including panels, inverters, racking, and wiring.
9 kW system at $3.05/W = $27,450 equipment cost. Without the exemption:
$27,450 x 5.5% = $1,510 in sales tax
With the exemption, you pay $0.
The exemption is automatic at point of sale. No paperwork needed from you.
While homeowners can no longer claim a federal tax credit on purchased solar systems, there is a narrow window where leases and PPAs retain a federal advantage.
Deadline: July 4, 2026 — Projects must begin construction before this date
After July 4, 2026, the Section 48/48E commercial ITC will no longer be available for new residential solar projects. Lease/PPA prices will likely increase.
A PPA lets you buy solar electricity at a fixed rate lower than your utility rate:
PPA rates may include annual escalators (1-3%). Even with escalation, most ME homeowners save for the full term.
| Factor | Buy (Cash/Loan) | Lease/PPA |
|---|---|---|
| Upfront cost | $0 (with loan) | $0 |
| Monthly payment | ~$212-$236/mo | ~$100-$150/mo |
| You own system? | Yes | No |
| 25-year savings | $30K-$45K | $12K-$22K |
| Federal credit | None (25D expired) | 48/48E to owner |
| Property value | +$10K-$20K | Minimal/complex |
| Maintenance | Your responsibility | Company handles |
| Contract length | 12-15 yr loan | 20-25 yr agreement |
Maine has two major electric utilities. Both offer identical 1:1 NEB, but there is a meaningful rate difference that affects your solar payback period.
| Feature | Central Maine Power (CMP) | Versant Power |
|---|---|---|
| Coverage | ~70% of Maine households | ~30% of Maine households |
| Territory | Southern & central Maine (Portland, Lewiston, Augusta) | Northern & eastern Maine (Bangor, Presque Isle) |
| Avg Rate | $0.27/kWh | $0.32/kWh |
| Net Energy Billing | 1:1 retail rate | 1:1 retail rate |
| Credit Rollover | Monthly, annual true-up | Monthly, annual true-up |
| Avg Monthly Bill | ~$180/month | ~$210/month |
| Annual Solar Savings (9 kW) | ~$2,430 | ~$2,880 |
| Solar Payback | 15-17 years | 12-14 years |
| Interconnection Timeline | 4-8 weeks | 4-10 weeks |
Maine was a leader in community solar under LD 1711 (2019), but LD 1777 (2023) significantly changed the economics for new projects. Here is the current status:
Adjust system size, utility, and battery to see exactly how much Maine solar incentives are worth for your home. All calculations use verified 2026 NEB rates and tax exemption data.
Honest math — fewer incentives, but high rates make solar work
First-Year Value
$3,298
NEB savings + property tax saved
25-Year Lifetime
$82,439
on a $27,450 system
Payback Period
8.3 years
then pure savings
The honest picture
Maine has fewer stacking incentives than Massachusetts or Rhode Island. Your payback relies primarily on high electricity rates and 1:1 NEB credits. The property tax exemption adds steady annual value. There is no state solar rebate and no federal residential ITC.
Estimates based on Maine averages (~1,200 kWh/kW/year production, $3.05/W cost). Actual values depend on system design, shading, and utility rate changes. Federal residential ITC (Section 25D) expired Dec 31, 2025. Sales tax exemption status is unverified and not included in calculations.
Transparency matters. Here are the solar programs and incentives that Maine does not currently offer. If a solar company tells you otherwise, that is a red flag.
Section 25D expired December 31, 2025. Homeowners who buy with cash or loan get $0 in federal credits.
Efficiency Maine does NOT offer solar panel rebates. Their rebate programs cover heat pumps ($1,000-$3,000/unit), not solar. If someone promises a state rebate, walk away.
Maine does not have a Solar Renewable Energy Credit (SREC) or per-kWh production payment like MA (SMART) or RI (REG). Your NEB credits are your production value.
No standalone battery rebate or demand response program like CT/MA ConnectedSolutions. Batteries help with backup power but do not earn additional incentive payments in Maine.
Unlike CT (Smart-E Loan at 0.99% APR), Maine does not have a green bank offering subsidized solar financing. Standard solar loans run 6.5-9% APR.
The federal Solar for All program, which would have provided low-income solar access, was terminated under the current administration. Do not count on this.
Maine's solar incentive landscape is thinner than Massachusetts or Connecticut. There is no production incentive, no green bank financing, and no state rebate. But Maine's advantages are real: electricity rates are 70-100% above the national average, NEB credits are at full 1:1 retail (better than NH, RI, or MA), and both tax exemptions are strong. The payback is longer (12-17 years vs 8-10 in CT), but solar panels last 25+ years, meaning you still get 8-13 years of free electricity after breakeven. And for the 60%+ of Maine homes heating with oil, pairing solar with a heat pump creates the most powerful savings combination in the state.
An honest comparison of Maine solar incentives against other Northeast states in 2026.
| State | Avg Rate | Sales Tax | Property Tax | Net Metering | Special Program | Payback |
|---|---|---|---|---|---|---|
| Maine | $0.27-$0.32 | 100% exempt | 100% exempt (permanent) | 1:1 retail (NEB) | None | 12-17 years |
| New Hampshire | $0.27 | No sales tax | Local option (~66%) | ~85% retail (NEM 2.0) | None (SB 303 repealed) | 14-16 years |
| Massachusetts | $0.28-$0.32 | 100% exempt | 100% exempt | ~60% NEM 3.0 | SMART $0.03/kWh | 12-14 years |
| Connecticut | $0.27-$0.28 | 100% exempt | 100% exempt (15yr) | Full retail | Smart-E Loan | 8-10 years |
Maine's solar policy has evolved significantly since the state first adopted net metering.
Maine adopts net metering for distributed generation up to 100 kW
Efficiency Maine Trust expands to include solar thermal in programs
LD 1711 signed — dramatically expands community solar in Maine, creates distributed generation framework
Net Energy Billing (NEB) launches — 1:1 retail-rate credits for rooftop solar statewide
LD 1777 changes community solar compensation to tariff-based rates — rooftop NEB unaffected
Federal residential ITC (Section 25D) expires December 31. Solar for All terminated.
Maine relies on NEB, tax exemptions, and high rates. Community solar enrollment frozen for new projects.
Common questions about Maine solar incentives in 2026.
No. The federal residential solar tax credit (Section 25D) expired on December 31, 2025. Maine homeowners who purchase solar panels with cash or a loan receive $0 in federal tax credits. However, if you go solar through a lease or PPA, the third-party system owner may still claim Section 48/48E credits through July 4, 2026, which can translate to lower pricing for you.
Maine offers three key incentives: 1:1 Net Energy Billing (NEB) at full retail rate ($0.27-$0.32/kWh depending on your utility), 100% statewide property tax exemption under 36 M.R.S. §655, and sales tax exemption on solar equipment (5.5%). There is no state solar rebate — Efficiency Maine rebates are for heat pumps only, not solar panels.
Net Energy Billing (NEB) gives rooftop solar owners 1:1 retail-rate bill credits for all electricity exported to the grid. Credits roll over monthly and are trued up annually. LD 1777 (2023) changed community solar compensation to a tariff-based rate, but rooftop residential NEB is completely unaffected — your 1:1 credits are protected.
The average cost of solar in Maine is $2.91-$3.19 per watt before incentives, with an average of $3.05/W. A typical 9 kW system costs approximately $27,450. After the sales tax exemption (~$1,510 saved), the effective cost is ~$25,940. Without the federal ITC, there is no 30% credit to reduce this further.
Without the federal ITC, the payback period varies by utility: 15-17 years for CMP customers ($0.27/kWh) and 12-14 years for Versant customers ($0.32/kWh). Higher Versant rates mean each kilowatt-hour your panels produce offsets more expensive electricity. Solar panels last 25+ years, so you still get 8-13 years of free electricity after breakeven.
No. Efficiency Maine does not offer a solar panel rebate. Their rebate programs are focused exclusively on heat pumps ($1,000-$3,000 per unit), weatherization, and energy efficiency. If a solar company tells you there is a Maine state solar rebate, that is incorrect.
Yes. Maine exempts solar energy equipment from property tax assessment 100% statewide under 36 M.R.S. §655. Unlike New Hampshire where this is a local option, every Maine municipality must honor the exemption. A typical 9 kW system saves approximately $381 per year in property taxes based on Maine average mill rates.
Central Maine Power (CMP) serves ~70% of Maine customers at ~$0.27/kWh. Versant Power serves ~30% of Maine (primarily northern and eastern areas) at ~$0.32/kWh. Both utilities offer identical 1:1 NEB credits for rooftop solar. Versant customers see faster payback (12-14 years vs 15-17 years) because each kilowatt-hour offset is worth $0.05 more.
No. LD 1777 (2023) only changed compensation for new community solar projects filed after January 1, 2024, moving them to a tariff-based rate set by the Maine PUC. Rooftop residential solar NEB at 1:1 retail rate is completely unaffected and protected. Do not let anyone tell you otherwise.
Both options have merit. Purchasing (cash or loan) gives you full ownership, maximum long-term savings, and the property tax exemption benefit. A lease or PPA offers $0 down because the third-party owner can claim federal Section 48 credits (30%) through July 4, 2026 — passing savings to you as a lower rate. After that deadline, lease/PPA pricing may increase. Maine homeowners who can afford to buy typically come out ahead over 25 years.
Maine Energy Hub
All ME solar & heat pump guides
ME Solar Guide
Complete solar overview
ME Solar Cost 2026
Pricing breakdown by city
Solar Without the ITC
Is it still worth it in ME?
ME Net Metering Guide
How NEB credits work
ME Solar Tax Benefits
Property & sales tax details
Buy vs Lease vs PPA
Best financing for ME
CMP vs Versant Rates
Side-by-side rate comparison
ME Community Solar
Status after LD 1777
ME Commercial Solar
Business solar options
Solar + Heat Pump ME
The ultimate combo for oil homes
Portland Solar Cost
Portland-specific analysis
Bangor Solar Cost
Versant territory analysis
Lewiston Solar Cost
CMP territory analysis
Section 48 Guide
How commercial ITC helps you
Solar Lease & PPA ME
TPO options in 2026
Income-Eligible Solar
Low-income ME programs
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Section 48 lease/PPA deadline: July 4, 2026. Versant customers save $450+/yr more than CMP.