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Maine's full retail rate net energy billing and competitive installation costs deliver over $125,000 in 25-year savings on an 11 kW system — making solar a strong long-term investment even without the federal tax credit or state rebates.
Avg Utility Rate
$0.27/kWh
State Incentives
$0
Payback Period
9.5 years
25-Year Savings
$125,900
By NuWatt Energy Team • Updated February 2026 • 8 min read
Yes, solar is worth it in Maine in 2026 even without the federal tax credit. With average utility rates of $0.27/kWh and $0 in state incentives, a typical 11kW system pays for itself in approximately 9.5 years and delivers $125,900 in total savings over 25 years. Solar locks in your electricity cost at a fraction of what you pay the utility, and the gap widens every year as rates climb 3-5% annually.
A typical residential solar installation in Maine uses 25 panels to build a 11kW system. Here is the full cost breakdown before and after state incentives, with no federal tax credit applied (Section 25D expired December 31, 2025).
Cost Per Watt
$3.00/W
Gross System Cost
$32,984
Net Cost After Incentives
$32,984
2025 vs 2026 Cost Comparison
2025 (with 30% ITC): A homeowner in Maine would have received a $9,895 federal tax credit, bringing the net cost down to $23,089.
2026 (no ITC): The same system now costs $32,984 after state incentives only — $9,895 more than it would have cost last year.
The payback period tells you how many years of electricity savings it takes to fully offset the cost of your solar installation. In Maine, the math works out as follows:
Payback = Net Cost ÷ Annual Savings = $32,984 ÷ $3,454 = 9.5 years
| Year | Annual Savings | Cumulative (Net) | Status |
|---|---|---|---|
| Year 1 | $3,454 | -$29,530 | Recovering |
| Year 5 | $4,041 | -$14,276 | Recovering |
| Year 10 | $4,916 | +$8,485 | Profit |
| Year 15 | $5,981 | +$36,177 | Profit |
| Year 25 | $8,854 | +$110,861 | Profit |
Payback comparison: In 2025, this same system would have paid back in 6.7 years. In 2026, it takes 9.5 years — 2.8 years longer. The difference is entirely due to losing the $9,895 federal tax credit.
While Maine homeowners can no longer claim the federal residential solar tax credit (Section 25D), the state offers several incentive programs that help offset the cost of going solar.
Full retail rate
Maine's net energy billing program provides full retail rate credits for exported solar energy on systems up to 25kW, functioning similarly to traditional net metering.
Local option
Many Maine municipalities offer property tax exemptions for solar installations. Availability varies by town — check with your local assessor.
Net metering is the policy that determines how your utility credits you for excess solar electricity you send to the grid. In Maine, the specifics vary by utility company. Here is a summary of the top utilities and their current net metering policies.
| Utility | Credit Type | System Size Cap | Excess Policy |
|---|---|---|---|
| CMP (Central Maine Power) | Net energy billing | 25 kW | Monthly credits at retail rate; annual true-up at avoided cost |
| Versant Power | Net energy billing | 25 kW | Monthly credits at retail rate; annual true-up at avoided cost |
| Eastern Maine Electric Coop | Varies | Varies | Contact cooperative for current policy details |
Net metering is critical to your solar payback. When your panels produce more than you use during the day, the excess flows to the grid and your meter effectively runs backward. You receive credits that offset your nighttime and cloudy-day electricity usage. The stronger the net metering policy, the more value you extract from every kilowatt-hour your panels produce.
Losing the 30% federal tax credit makes solar more expensive upfront, but it does not erase the long-term financial case. Here is why Maine homeowners should still seriously consider going solar in 2026:
Net energy billing at full retail rate for systems up to 25kW
Maine has set aggressive clean energy targets (80% by 2030)
Competitive installation costs ($3.00/W) and $0.27/kWh rates drive value
Property tax exemption available in many municipalities
Rising utility rates protect your investment. Electricity prices in Maine have historically risen 3-5% per year. Your solar panels produce power at a fixed cost, meaning your savings grow every single year as the gap between solar and utility pricing widens.
Solar increases your home value by approximately 4%. National studies consistently find that owned solar systems add roughly 4% to a home's sale price. On a median-priced home in Maine, that translates to thousands of dollars in added equity — often recovering a significant portion of your net system cost before you factor in electricity savings.
These are real solar installations completed by NuWatt Energy in Maine. Every system was designed, permitted, and installed by our team.
6.9 kW · 16 REC panels · Enphase IQ8+
Est. 7,441 kWh/year
Completed January 2025
View Full Project →
8 kW · 20 Canadian panels · Enphase IQ8+
Est. 7,899 kWh/year
Completed November 2023
View Full Project →
The 30% federal Investment Tax Credit (ITC) is gone for homeowner purchases (Section 25D), but it is still available to solar companies through Section 48/48E. When you sign a solar lease or Power Purchase Agreement (PPA), the installer owns the system, claims the 30% credit, and passes some of those savings to you through lower monthly payments.
For a full comparison of owning vs. leasing solar in 2026, including monthly cost examples and long-term savings projections, see our Solar Lease vs. Buy 2026 guide.
Maximize your savings: Combine solar with a heat pump for maximum savings — electrifying both your electricity and heating in Maine can cut your total energy costs by 50–70%.
Maine uses "net energy billing" rather than traditional net metering, but the practical effect is similar for residential solar owners. Under net energy billing, CMP and Versant Power provide full retail rate credits for energy your system exports to the grid, with a 25kW system size cap. Credits roll over monthly, with an annual true-up at avoided cost. For most homeowners, this functions identically to 1:1 net metering.
Maine has focused its clean energy policy on favorable net energy billing rules and clean energy mandates (80% renewable by 2030) rather than direct rebate programs. While this means no upfront incentive to reduce your installation cost, the strong net energy billing at full retail rate ($0.27/kWh) and competitive installation costs ($3.00/W) still make solar financially attractive with 25-year savings exceeding $125,000 on an 11 kW system.
While Maine's 9.5-year payback is longer than states with robust incentive programs, the math still strongly favors solar. Your system will produce power for 25-30+ years, meaning you get 15-20 years of pure savings after payback. With Maine electricity rates rising an average of 3% per year, your annual savings grow from $3,454 in year one to over $6,500 by year 25. Total projected 25-year savings exceed $125,000 on a $32,984 investment.
Every roof is different. Get a personalized savings estimate based on your actual electricity usage, roof orientation, and local utility rates in Maine.
Or call us directly: (877) 772-6357