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KL&P has provided reliable, affordable electricity to the Kennebunks since 1917. This guide covers solar costs, incentives, net metering policies, and savings projections specifically for KL&P ratepayers in Kennebunk, Kennebunkport, Arundel.

$0.23/kWh
Estimated residential rate. About 15% below the state IOU average of $0.27/kWh.
Available
Net metering at retail rate with monthly credit rollover.
Kennebunk, Kennebunkport, Arundel
Kennebunk Light & Power District provides electricity to 3 communities in Maine.
$0.50/watt
Max: $5,000 (10 kW max). One-time rebate for residential solar installations.
(207) 985-3311
Official WebsiteFree Audit Available
Schedule a free home energy audit to identify savings opportunities before going solar.
Municipal utilities typically offer lower electricity rates because they operate as non-profit, community-owned entities. There are no shareholders to pay, and local governance keeps costs in check. Here is how KL&P’s estimated rates compare to Maine’s investor-owned utility (IOU) average.
| Metric | KL&P | ME IOU Average |
|---|---|---|
| Residential Rate (est.) | $0.23/kWh | $0.27/kWh |
| Annual Cost (900 kWh/mo) | $2,484 | $2,916 |
| Ownership | Community-owned, non-profit | Shareholder-owned, for-profit |
| Rate Setting | Local board/town meeting | State PUC regulated |
| Savings vs. IOU | ~15% lower rate = ~$432/yr savings | |
Rates shown are estimates based on publicly available data. Municipal utility rates can change based on local board decisions. Even with lower rates, solar panels still provide significant savings by reducing or eliminating your electric bill. Contact KL&P for your exact current rate.
Understanding available incentives is key to maximizing your solar investment. Here is what KL&P customers can access in 2026.
The federal residential solar ITC expired on December 31, 2025. Homeowners who purchase solar panels with cash or a loan no longer receive a federal tax credit. However, third-party owned systems (solar leases and PPAs) may still qualify under Section 48/48E, with the financing company claiming the credit. This makes local utility rebates more valuable than ever.
KL&P
$0.50/watt
Max: $5,000 (10 kW max)
One-time rebate for residential solar installations.
Must be a KL&P customer in good standing.
heat pump
$800 per head
Rebate for ductless mini-split heat pumps.
Must be replacing oil or propane heating.
water heater
$500
Rebate for ENERGY STAR heat pump water heaters.
Must replace electric resistance or fossil fuel water heater.
ev charger
$400
Rebate for Level 2 home EV charger installation.
Must be a KL&P customer.
battery
$200/kWh
Rebate for residential battery storage systems.
Must be paired with solar installation.
weatherization
Up to $500
Rebate for insulation and air sealing.
Must complete energy audit first.
Here is what a typical 8 kW residential solar installation looks like for KL&P customers, including available incentives and projected savings over 25 years.
Projection assumes $0.23/kWh rate with no annual increase (conservative estimate). Actual savings may be higher as rates typically increase 2-4% per year.
With a solar lease or power purchase agreement (PPA), a third-party company owns the system on your roof. The system owner can still claim the 30% federal ITC under Section 48/48E, which often results in lower monthly payments for you. You pay a fixed monthly rate or per-kWh price that is typically lower than your utility rate, with no upfront cost.
Customize your system size to see estimated costs and savings based on KL&P’s rates and available incentives.
Estimate your solar costs and savings with KL&P
19 panels at 430W each
Annual Production
10,000 kWh
Year 1 Savings
$2,300/yr
Payback Period
~10 years
25-Year Net Profit
$33,284
Estimates based on 1250 kWh/kW annual production, 0.23/kWh utility rate, and 0.5% annual panel degradation. Federal residential solar tax credit (Section 25D) expired Dec 31, 2025. Actual results vary by roof orientation, shading, and usage patterns.
Net metering at retail rate with monthly credit rollover.
Net metering is the billing mechanism that makes rooftop solar financially attractive. When your solar panels produce more electricity than your home uses, the excess flows back to the grid and your meter effectively “runs backwards.” Here is the typical process with KL&P:
Bill credits for reducing usage during peak demand events.
Incentive: $25/event
As a municipal utility, Kennebunk Light & Power District may participate in different state and federal programs compared to investor-owned utilities. Here is a summary of what KL&P customers can typically access.
The utility offers its own rebate and incentive programs for customers (see the incentives section above for details).
Home Electrification and Appliance Rebates are available regardless of utility type. Up to $8,000 for income-qualified households.
Municipal utilities set rates locally without shareholder profit margins, which often results in lower electricity costs.
KL&P offers net metering, allowing solar customers to earn credits for excess generation.
Kennebunk Light & Power District is a municipal utility, also known as a publicly owned utility or municipal light plant (MLP). Unlike investor-owned utilities (IOUs) such as large regional utilities, municipal utilities are owned and operated by the local community.
Kennebunk Light & Power District customers pay approximately $0.23/kWh, which is roughly 15% less than the state average for investor-owned utilities ($0.27/kWh). As a municipal utility, KL&P sets rates locally, and revenue stays in the community rather than going to shareholders.
Yes. Kennebunk Light & Power District offers a solar rebate of $0.50/watt (max $5,000 (10 kW max)). One-time rebate for residential solar installations. Note: The federal residential solar tax credit (Section 25D) expired on December 31, 2025, so this local rebate is now one of the most important incentives available to homeowners.
Yes. Kennebunk Light & Power District offers net metering for solar customers. Net metering at retail rate with monthly credit rollover.
As a municipal utility, Kennebunk Light & Power District may participate in different programs than investor-owned utilities. Contact the utility directly or visit their website to learn about available efficiency programs and rebates.
To install solar panels as a Kennebunk Light & Power District customer: (1) Get a free solar estimate to determine your optimal system size. (2) Contact KL&P about interconnection requirements and any pre-approval needed. (3) Choose a NABCEP-certified installer. (4) After installation, apply for any available utility rebates. (5) Your system connects to the grid and you begin saving. The process typically takes 2-4 months from signing to activation.
Get a free, personalized solar estimate tailored to KL&P’s rates and incentives. Our NABCEP-certified team handles everything from design to permitting to interconnection.
Serving Kennebunk, Kennebunkport, Arundel and all of Maine. Free consultation, no obligation.