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The federal 25D residential solar tax credit is gone. In 2026, Maine homeowners pay $26,190-$28,710 for a 9 kW system with zero federal credit. But PPAs and leases still benefit from the 30% Section 48 ITC through the third-party owner, making them the strongest $0-down option in 2026.
$0
Federal 25D Credit
30%
Section 48 ITC (PPA/Lease)
$3.05/W
Avg ME Solar Cost
1:1
NEB Rooftop Credit
The Section 25D residential solar investment tax credit expired on December 31, 2025. Maine homeowners who purchase or finance solar in 2026 receive $0 in federal tax credits. This changes the math significantly for every financing option.
Expired December 31, 2025. Homeowners who buy or finance solar panels receive $0 federal tax credit. This applies to cash purchases and solar loans.
Still active for projects beginning construction before July 4, 2026. The third-party system owner (PPA/lease company) claims the 30% ITC, not the homeowner or installer. This benefit is passed through as lower rates.
Before 2026, cash purchase was the clear winner because the 30% ITC reduced your cost by $8,000+. Now that the residential ITC is gone, PPAs and leases have become more competitive because their third-party owners can still claim the 30% Section 48 ITC and pass savings to you through lower rates.
Each option has different trade-offs for upfront cost, long-term savings, and ownership. Here are the real 2026 numbers for a typical 9 kW system in Maine.
Upfront Cost
$26,190-$28,710
Monthly Cost
$0
Federal ITC
$0 (25D expired)
25-Year Savings
$55,000-$80,000+
NEB Credits
You keep 100% of NEB credits
Payback
15-17 years (CMP) / 12-14 years (Versant)
Best for: Homeowners with capital who want maximum long-term savings
Upfront Cost
$0 down
Monthly Cost
$160-240/month
Federal ITC
$0 (25D expired)
25-Year Savings
$35,000-$55,000
NEB Credits
You keep 100% of NEB credits
Payback
17-20 years (after loan payoff)
Best for: Homeowners who want ownership with no upfront cost
Upfront Cost
$0
Monthly Cost
Per kWh (10-20% below retail)
Federal ITC
30% Section 48 ITC (to third-party owner)
25-Year Savings
$15,000-$30,000
NEB Credits
TPO receives NEB credits
Payback
Immediate savings (day 1)
Best for: Best post-25D option: $0 down + ITC benefit passes through as lower rate
Upfront Cost
$0
Monthly Cost
Fixed monthly payment
Federal ITC
30% Section 48 ITC (to third-party owner)
25-Year Savings
$12,000-$25,000
NEB Credits
TPO receives NEB credits
Payback
Immediate savings (day 1)
Best for: Predictable monthly payments with no ownership responsibility
Upfront Cost
$0
Monthly Cost
Subscription fee (offset by bill credits)
Federal ITC
Project owner may claim Section 48
25-Year Savings
$8,000-$15,000
NEB Credits
Credits vary by project (LD 1777 tariff rate for new projects)
Payback
Immediate savings
Best for: Renters, condos, shaded roofs, or anyone who cannot install
With the residential 25D ITC gone, the math has shifted. PPAs now offer the best combination of no upfront cost and ITC-backed savings because the third-party system owner claims the 30% Section 48 ITC and passes the benefit to you as a lower per-kWh rate.
$0 upfront cost
No cash needed. The PPA company finances, installs, and maintains the system.
Section 48 ITC passes through
The third-party owner claims the 30% commercial ITC and uses it to offer you electricity at 10-20% below your current CMP or Versant rate.
No maintenance responsibility
The PPA company owns the system and handles all repairs, monitoring, and insurance for the contract term (typically 20-25 years).
Immediate savings from day 1
Unlike cash or loan, there is no payback period. You save money starting with your first bill.
Rate escalator protection
PPA rate increases are typically capped at 1-3% annually, while Maine utility rates have risen 4-6% per year historically.
| Feature | Cash | Loan | PPA | Lease | Community |
|---|---|---|---|---|---|
| Upfront Cost | $26,190-$28,710 | $0 | $0 | $0 | $0 |
| Monthly Cost | $0 | $160-240 | Per kWh rate | Fixed monthly | Subscription |
| Federal ITC | $0 (25D dead) | $0 (25D dead) | 30% (Sec 48) | 30% (Sec 48) | Varies |
| You Own System | Yes | Yes | No | No | No |
| NEB Credits | You keep 100% | You keep 100% | TPO keeps | TPO keeps | Bill credits |
| Property Tax Exempt | Yes (100%) | Yes (100%) | N/A (TPO) | N/A (TPO) | N/A |
| Sales Tax Exempt (5.5%) | Yes (~$1,500) | Yes (~$1,500) | Built into rate | Built into rate | N/A |
| 25-Year Savings | $55K-$80K+ | $35K-$55K | $15K-$30K | $12K-$25K | $8K-$15K |
| Payback Period | 15-17 yrs (CMP) | 17-20 yrs | Day 1 | Day 1 | Day 1 |
Choose Cash if:
You have $26K-$29K available and want maximum long-term savings. Cash offers the highest 25-year return and full NEB credit ownership, but requires patience for a 15-17 year payback.
Choose Loan if:
You want system ownership with $0 down and can handle $160-240/month payments at 6-8% APR. You keep NEB credits and tax exemptions, but total cost is higher due to interest.
Choose PPA if:
You want $0 down, immediate savings, and no maintenance. The third-party owner claims the 30% Section 48 ITC and passes it through as a 10-20% rate discount. Best post-25D $0-down option.
Choose Lease if:
You prefer fixed monthly payments over a variable per-kWh rate. Similar to PPA but with predictable costs regardless of production levels.
Choose Community Solar if:
You rent, have a shaded roof, own a condo, or simply do not want panels on your roof. $0 cost, no installation, and immediate bill credits.
Compare cash, loan, PPA, and lease options with real pricing for your home. See which financing option maximizes your savings in 2026.