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Section 25D is dead. Homeowners who buy solar get $0 from the IRS. But through a lease, PPA, or Propel agreement, a third-party owner still captures the 30% ITC under Section 48/48E — and passes the savings to you. Maine's 1:1 net metering and Propel availability make it one of the strongest TPO states in New England.
Maine combines 1:1 net metering (the best in New England), Propel availability (one of only two states), and high electricity rates ($0.27–$0.32/kWh) to create exceptional solar lease and PPA economics.
Section 48/48E still provides a 30% ITC for the system owner through July 4, 2026. With $0 down and no maintenance, a Maine homeowner can save $800–$1,200 in year one and $20,000–$30,000 over 25 years.
Maine's extreme oil dependence (60%+ of homes) makes solar + heat pump bundles especially compelling — a solar lease can fund the electricity to power heat pumps that replace expensive heating oil.
1:1 Retail
Net Metering
Available
Propel
$0.27/kWh
Avg Rate
Jul 4, 2026
ITC Deadline
Maine is one of only two states where NuWatt's Propel program is available. Propel eliminates the tradeoff between leasing and buying — you get ITC savings and ownership.
No upfront cost. Your 25-year loan with Concert Finance covers everything.
A third-party owner holds the system for years 1–5 and claims the 30% Section 48/48E credit. That savings is baked into your lower payment.
After the 5-year ITC recapture period, full ownership transfers to you — free of charge. No buyout required.
The third-party owner guarantees system performance and covers all maintenance for the first 5 years.
Because the ITC is factored in, your monthly payment is 15–25% lower than a standard solar loan.
Years 1–5: A third-party owner holds your solar system and claims the 30% Section 48/48E ITC. You make fixed monthly payments ($120–$200/mo) through a 25-year loan with Concert Finance. The owner guarantees system performance and handles all maintenance.
Year 5+: Full ownership transfers to you at no additional cost. You own the panels, the production, and the 1:1 NEB credits outright. Your loan payments continue but you now keep 100% of the value.
A standard solar lease and Propel are both $0-down, but the similarities end there. Propel is designed for Maine homeowners who want ownership, not a rental.
Fixed payment • Year-5 ownership • No escalator
Low starting rate • Escalator • No ownership
A standard lease that starts at $100/mo with a 2.9% escalator becomes $145/mo by year 15 and $175/mo by year 20. Meanwhile, CMP rates may or may not rise that fast. With Propel, your payment is fixed at $120–$200/mo for the life of the loan — and you own the system after year 5.
Year 1
$100/mo
Lease starts low
Year 15
$145/mo
+45% from start
Year 20
$175/mo
+75% from start
Standard leases and PPAs still make sense if Propel isn't available for your project — they capture the 30% ITC and deliver day-one savings with $0 down. But if you qualify for Propel, it's the stronger path: fixed payments, no escalator, and full ownership at year 5 with Maine's 1:1 NEB credits and 100% property tax exemption working in your favor.
Section 25D expired December 31, 2025. Cash or loan buyers get $0 from the IRS. But Section 48/48E gives the system owner (the financing company) a 30% credit — and that savings flows to you.
A financing company (the "third-party owner") purchases and installs solar panels on your roof. You don't buy the system — you agree to either lease it (fixed monthly payment) or buy the power it produces (PPA, per-kWh rate).
Because the financing company legally owns the system, it files IRS Form 3468 and claims the 30% Investment Tax Credit under Section 48/48E. On a $30,000 system, that's $9,000 back from the IRS. The company also claims MACRS depreciation (5-year accelerated schedule + 20% bonus in 2026).
The financing company doesn't pocket the ITC — it uses the $9,000+ in tax benefits to reduce your monthly payment. This is why lease/PPA payments are typically 20–40% lower than what you'd pay on a standard solar loan without the ITC.
Your lease/PPA payment is locked in below your current electric bill rate. You save money starting month one. The system owner handles all maintenance, monitoring, and warranty claims.
With NuWatt's Propel program, the third-party owner transfers full ownership to you at year 5 — after the ITC recapture period expires. You get the best of both worlds: ITC savings upfront, full ownership long-term.
Important: The financing company claims the ITC — not the installer, not you.
Any company that tells you “the installer gets the tax credit” is wrong. The ITC goes to the entity that owns the system. In a lease or PPA, that is the financing company. The installer is paid for labor and equipment — they do not claim any tax credit.
While homeowners lost their credit, the commercial ITC remains available for third-party system owners through July 4, 2026.
Credit Rate
30%
With prevailing wage + apprenticeship compliance (6% without)
Who Claims It
The system owner (financing company)
NOT the homeowner, NOT the installer
Residential Eligibility
Yes — via third-party ownership
TPO company owns the system, leases/PPAs it to you
Construction Deadline
Begin construction before July 4, 2026
OBBBA sunset — projects must start before this date
Minimum Hold Period
5 years
System owner must hold for 5 years or face ITC recapture
Stackable Bonuses
Domestic content (+10%), Energy community (+10%)
Can reach 50%+ total credit on qualifying projects
MACRS Depreciation
5-year schedule + 20% bonus (2026)
Additional tax benefit for the system owner
Based on an 8 kW system at $3.05/W = $24,400 total cost. CMP rate of $0.27/kWh.
| Feature | Cash | Loan | Lease | PPA | Propel |
|---|---|---|---|---|---|
| Upfront Cost | $24,400 | $0 | $0 | $0 | $0 |
| Federal ITC | $0 (25D expired) | $0 (25D expired) | 30% (owner) | 30% (owner) | 30% (owner) |
| Monthly Payment | $0 | $150-220/mo | $85-145/mo | Varies | $120-200/mo |
| Rate / kWh | Free | Free | N/A (fixed) | $0.11-0.17 | N/A (fixed) |
| You Own It? | Yes (day 1) | Yes (day 1) | No | No | Yes (year 5) |
| Maintenance | You | You | Included | Included | Yr 1-5 free |
| NEB Credits | You keep | You keep | In your rate | In your rate | Yours at yr 5 |
| Best For | Max savings | Ownership, no cash | Simple savings | Pay per kWh | ITC + ownership |
Estimates based on CMP territory ($0.27/kWh). Versant customers ($0.32/kWh) will see higher savings across all financing options. Section 25D expired Dec 31, 2025 — cash/loan buyers receive $0 ITC.
Maine offers a rare combination of strong net metering, Propel availability, full tax exemptions, and high utility rates that make third-party solar among the best in the Northeast.
Maine credits rooftop solar exports at full retail rate. Every kWh sent to the grid offsets a full kWh on your bill. This is the best net metering in New England and maximizes TPO value.
Maine is one of only two states (with Texas) where NuWatt Propel is available. Get the 30% ITC captured, $0 down, and own your system at year 5.
All solar installations are exempt from property tax statewide. No municipal opt-in required. Solar adds home value without increasing your taxes.
Maine charges 5.5% sales tax on most purchases. Whether solar equipment qualifies for an exemption has not been confirmed from official statute. Your installer can advise on current tax treatment.
CMP charges $0.27/kWh and Versant charges $0.32/kWh. A PPA at $0.11-0.17/kWh saves $0.10-0.21 per kWh from day one, creating meaningful savings.
Over 60% of Maine homes heat with oil. Solar lease + heat pump rebates create a whole-home electrification path that eliminates volatile oil costs.
Both Maine utilities support net metering, but Versant's higher rates create a wider savings gap for lease and PPA customers.
CMP serves the southern and central regions including Portland, Augusta, Lewiston, and Bangor. Moderate savings with strong TPO economics thanks to 1:1 NEB.
Versant serves northern and eastern Maine including Aroostook County and the Bangor Hydro district. Higher rates create significantly better TPO savings — the spread between your utility rate and PPA rate is wider.
Over 60% of Maine homes heat with oil — the highest rate in the country. At $3.82/gallon, a typical Maine household spends $2,500–$4,000/year on heating oil alone.
$3.82/gal
Heating oil price (ME avg)
Volatile — spiked above $5/gal in 2022
$0.11–$0.17/kWh
Solar PPA rate (locked)
Fixed for 20–25 years — no volatility
$3K–$5K/yr
Combined savings (solar + HP)
Solar lease powers heat pump, eliminating oil
Step 1: Install solar via lease, PPA, or Propel ($0 down). The system owner captures the 30% ITC under Section 48/48E.
Step 2: Use Efficiency Maine heat pump rebates ($1,000–$3,000/unit) to install heat pumps that replace oil heating.
Step 3: Your solar system generates electricity to power the heat pumps. With 1:1 NEB credits, every kWh counts at full retail value.
Result: You eliminate oil costs, lock in electricity rates, and reduce your carbon footprint — all with $0 upfront through TPO financing.
Status: PARTIALLY ACTIVE. Maine's HEAR program (Home Efficiency and Appliance Rebates) is currently limited to mobile homes and affordable multifamily new construction only. Standard single-family homeowners are NOT eligible at this time.
Maine has approximately $71.7 million in HEAR funding allocated. If the program expands to standard single-family homes, eligible households could receive up to $8,000 for heat pump installations. This is a heat pump rebate, not a solar rebate — but it complements a solar lease by reducing the cost of electrification.
HEAR rebates are direct rebates applied at point of sale — not tax credits. They do not require tax liability. Check Efficiency Maine income eligibility for current qualifying criteria.
The One Big Beautiful Bill Act (OBBBA) requires projects to begin construction before July 4, 2026 to qualify for Section 48/48E. After this date, the 30% ITC for third-party solar owners may be eliminated or significantly reduced.
If bundling solar + EV charger, the $1,000 EV charger credit (Section 30C) expires June 30, 2026.
The 20% bonus depreciation available in 2026 drops to 0% in 2027, reducing the TPO company's tax benefit and potentially increasing your lease/PPA payments.
Maine Timeline: Start by Spring 2026
Permitting and interconnection in Maine typically take 4–8 weeks. To ensure your project begins construction before the July 4, 2026 deadline, start the process no later than April 2026. For Propel, earlier is better — the financial model depends entirely on the ITC.
Find out how much you can save with a solar lease, PPA, or Propel in Maine. $0 down, 30% ITC captured, 1:1 net metering. The July 4, 2026 deadline is approaching — start today.