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The 30% federal solar tax credit is gone for homeowners. Maine has no state solar rebate. Here is the honest math on what solar costs now, what still makes it worthwhile, and the one financing option that changes everything.
Section 25D residential solar ITC: EXPIRED. $0 for homeowner purchases in 2026.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, eliminated the residential solar tax credit effective December 31, 2025. Any website claiming you can still get a 30% credit for a cash or loan purchase is wrong.
The timeline of events that eliminated the 30% residential solar credit.
Aug 2022
Inflation Reduction Act extends 25D at 30% through 2032
Jul 4, 2025
OBBBA signed — repeals 25D effective Dec 31, 2025
Dec 31, 2025
Section 25D expires. $0 for homeowner cash/loan solar purchases
Jan 1, 2026
Homeowners receive no federal solar tax credit. Third-party ITC (Section 48) still active.
Jul 4, 2026
Section 48/48E deadline — projects must begin construction before this date
The ITC is gone, but these incentives still provide real value for Maine solar owners.
Retail-rate bill credits for all exported solar electricity.
100% statewide property tax exemption. Solar adds home value but $0 to taxes.
5.5% sales tax exempt on equipment, labor, and batteries.
While homeowners can no longer claim a federal credit, the commercial ITC is still active. When a third-party company (PPA or lease provider) owns the solar system on your roof, they claim the 30% Section 48 credit. This lowers their cost, which is passed to you as a below-retail electricity rate. This is the strongest option in Maine post-ITC for homeowners who want $0 down and immediate savings. Deadline: projects must begin construction before July 4, 2026.
Without the 25D ITC, the math has changed. PPA and lease are now more attractive relative to cash purchase because they still access the 30% Section 48 credit.
Highest 25-year ROI but longest payback without ITC.
$0 down but interest at 6-8% APR adds to total cost.
STRONGEST post-ITC option. Third-party owner claims 30% Section 48. Savings passed as below-retail rate.
Fixed monthly payment. Third-party claims Section 48 ITC. Maintenance included.
The numbers are honest — payback is longer. But solar is still a strong investment when you look at the full picture.
Maine rooftop solar gets full retail-rate bill credits. Every kWh produced saves you $0.27 (CMP) or $0.32 (Versant). LD 1777 did NOT change this.
Maine electricity rates have increased ~4% annually over the past decade. Solar locks in your rate at $0 for 25+ years, protecting against decades of increases.
100% property tax exempt (statewide mandate, not local option) + 5.5% sales tax exempt. Combined savings exceed $11,000 over 25 years.
Third-party system owners claim Section 48 ITC. This is passed to you as a below-retail electricity rate. $0 down, immediate savings.
Modern panels produce 80-85% of rated output at year 25. A 9 kW system produces ~270,000 kWh over its lifetime, worth $73,000-$86,000 at current rates.
Solar increases Maine home value by approximately $15,000-$20,000 (without increasing property taxes). This alone covers a significant portion of the system cost.
Based on a 9 kW system at $3.05/W. No inflated savings from expired tax credits.
$0.27/kWh, ~70% of Maine customers
$0.32/kWh, ~30% of Maine customers
Yes, but expectations must be realistic. In CMP territory, cash purchase payback is 15-17 years. In Versant territory, it is 12-14 years. Over 25 years, savings exceed $30,000. The strongest option post-ITC is a PPA or lease, where the third-party owner still captures the 30% Section 48 ITC and passes savings to you as a below-retail electricity rate. You get $0 down, immediate savings, and no maintenance responsibility.
The residential solar tax credit (Section 25D) expired on December 31, 2025, under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. Homeowners who purchase solar with cash or a loan in 2026 receive $0 in federal tax credits. The commercial/third-party ITC (Section 48/48E) remains active for projects beginning construction before July 4, 2026.
Section 48/48E is the commercial Investment Tax Credit. When a third-party company (PPA or lease provider) owns the solar system on your roof, they claim the 30% credit. This lowers their cost, which is passed to you as a below-retail electricity rate. You do not claim any federal credit yourself, but you benefit from it through lower payments. This credit requires projects to begin construction before July 4, 2026.
Without the 25D ITC, the calculus has shifted significantly toward PPA/lease for many homeowners. Cash purchase still offers the highest 25-year total savings but requires a large upfront payment and 15-17 year payback. PPA/lease offers $0 down, immediate savings (typically 10-20% below retail rate), and no maintenance — with the third-party owner still capturing the 30% Section 48 ITC.
Net Energy Billing (1:1 retail rate for rooftop solar), 100% statewide property tax exemption (~$381/year savings), 5.5% sales tax exemption (~$1,510 savings on a 9 kW system), and Section 48 ITC for third-party owned systems (PPA/lease). There is no state solar rebate and no federal 25D ITC for homeowners.
Maine has a longer cash purchase payback (15-17 years) compared to Massachusetts (~10-12 years with SMART program) but is comparable to New Hampshire (~9.5 years at higher rates). Maine's advantage is 1:1 NEB (vs NH's ~85% retail NEM) and statewide property tax exemption (vs NH's local option). For PPA/lease, Maine is competitive since the Section 48 ITC applies everywhere.
There is no current legislative effort to restore the residential solar ITC. The OBBBA repealed it as part of a larger tax package. Any restoration would require new legislation. Do not plan your solar purchase around a potential future credit — evaluate the economics based on what exists today.
Section 30C provides up to $1,000 for residential EV charger installation. Unlike the solar ITC, this credit has NOT expired — it remains active until June 30, 2026. If you are adding an EV charger alongside solar, this credit is still available.
Get a free, honest estimate based on your actual utility territory and roof. No inflated savings claims from expired credits. Real numbers only.