Maine Solar Incentives: Tax Credits & Rebates Guide 2024
Written by Saltanat Berdikeeva
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Edited by Hannah Hillson
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Last updated 09/22/2023
Estimate your home’s solar cost and savings
20-year savings
$8,563
Incentives
$2,277
Upfront cost
$7,863
Payback period
6 years
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Key Points
Solar power in Maine can be an excellent long-term investment, helping you save thousands over the lifetime of your solar panels.
Maine's average residential solar system costs about $22,800 for a 6-kilowatt system.
Local and federal tax credits in Maine can lower solar installation costs.
Maine has installed enough solar to power 128,816 homes, and its solar industry is positioned to grow significantly in the next five years.
Solar power in Maine
Maine is reducing the state’s dependence on traditional energy sources while improving its sustainability through solar energy. Remote areas may have limited access to the traditional power grid in Maine and solar panels can be a reliable energy solution, empowering electricity generation even in remote locations. However, the initial investment for a solar system can be substantial, often exceeding $30,000. Despite the cost, the long-term benefits, environmental advantages, and government incentives make solar an appealing choice for many.
In 2019, Maine improved its net metering law and removed barriers to community solar to encourage more utility-scale, residential, and commercial solar installations. According to the Solar Energy Industries Association (SEIA), around 8% of the state’s electricity comes from solar, enough to power over 128,816 homes. Increased opportunities for growth make it a great time to invest in solar electric power in Maine.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
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Maine solar panel cost
The cost of solar panels in Maine depends on several factors, including energy use, solar photovoltaic panel type, system size, location, local labor and permitting costs, and more. Solar panel costs are calculated in dollars per watt. According to data from Find Energy, the average residential solar system in Maine costs $3.80 per watt, totaling about $22,800 for a 6-kilowatt (kW) system. You can lower the upfront cost of solar with federal solar tax credits and other incentives.
The following table illustrates the difference between the average cost and size of solar in the U.S. and Maine, based on data from the Lawrence Berkeley National Laboratory and Find Energy. The following table includes the average system sizes, costs, and the number of panels in Maine relative to the U.S., based on 400 and 300 Watts per panel.
Price per Watt
System size (kW)
Cost
Number of
panels
Maine
$3.80
6 kW
$22,800
15–20
U.S.
$3.67
8.6 kW
$31,558
22–29
The cost and capacity of a solar system will vary based on your specific energy requirements. The right solar system for you will depend on your home size, energy use, panel types, shading around your property, rooftop shape and size, and budget. It’s essential to consult with a licensed solar installer who can assess and determine the appropriate size and capacity to meet your energy needs. The installer will review your utility bills, assess your property’s average peak sunlight throughout the year, evaluate your roof’s space and suitability for solar arrays, and discuss your energy goals.
How does Maine solar save you money?
Installing solar in Maine can save you a considerable amount of money through long-term return on investment. If you pay the average total solar system cost in Maine and your electric bill is the monthly state average of $161.36, the payback period for your solar array will likely be about eight years after accounting for the 30% federal tax credit. If electricity rates increase, as they typically do over time, you could save even more than that. Maine residents who purchase solar systems are also eligible for a state property tax exemption.
Each household has a unique energy consumption pattern and roof size, so system sizes vary across the state. The following table demonstrates various solar system sizes and costs at Maine’s average price per watt.
System size
Total cost
Number of
panels*
4 kW
$15,200
10–13
5 kW
$19,000
12–16
6 kW
$22,800
15–20
7 kW
$26,600
17–23
8 kW
$30,400
20–27
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Factors determining Maine solar panel costs
The cost of solar can be influenced by various factors, including:
Your energy goals
If you wish to offset your electricity use, you will need a large solar system, which can be expensive. You can opt for a more affordable, smaller system to reduce some of your electricity expenses.
Panel type
Solar panels with high-efficiency ratings produce more electricity within a limited space than lower-efficiency panels. But they are more expensive. Panels with lower-efficiency ratings can be cheaper but need more space to produce the same amount of energy.
Storage
Solar batteries offer homeowners increased energy independence and backup power capabilities. While a major optional expense, the exact cost of a battery will depend on the capacity and brand you select.
Roof
Your total solar installation cost may increase if roof repairs or adjustments are necessary for optimal performance.
Installer
Solar installers can charge different rates for labor. Getting several competitive quotes can help you make an informed decision on an installer.
Interconnection and permitting fees
Interconnection and permitting fees are additional costs associated with solar installation. While many installers include these fees in their quote, it’s worth asking to make sure.
The following is an approximate distribution of costs for solar systems based on the National Renewable Energy Laboratory data.
Necessary solar equipment and the parts to operate a solar system are the Balance of System portion. Marketing, financing, permitting, inspection, design, engineering, customer support, and solar system maintenance fall under soft costs.
The best Maine solar incentives or rebates
Solar panels are a substantial financial investment. However, homeowners in Maine can take advantage of state and federal incentives to lower the cost of solar and achieve long-term savings to recoup the installation price tag. The following table explains several available incentives for solar owners in Maine.
Maine’s net metering program, known as Net Energy Billing, allows solar producers with systems up to 5 megawatts (MW) to sell their unused energy to the grid in exchange for credits on their electricity bills. The 2019 law allows net metering customers to get credits at their utility’s full retail value.
This 30% federal tax credit can be applied to purchasing solar systems from the beginning of 2022 until 2032. It will drop to 26% in 2033 and 22% in 2034 and expire in 2035 unless renewed.
Maine residential solar system owners are eligible for the state-based property tax exemption. Solar owners do not have to pay increased property taxes for their solar energy equipment. You must complete this application form to get the state’s approval to qualify for the exemption.
Solar incentives in Bangor
Bangor’s leading electric utility, Versant Power, partners with ReVision Energy to provide community solar to the city’s residents.
According to Versant Power, it doesn’t own the community solar sites but helps ReVision Energy connect them to the power grid safely.
Bangor and Portland residents are eligible for a Renewable Energy Investment Exemption, excluding solar panels from property taxes.
Why choose Maine solar power?
Going solar in Maine has several benefits, including savings on energy costs, greater energy independence, and lowering your residential carbon footprint. Here is a closer look at how energy solar can save you money.
Money-saving benefits of going solar in Maine
One of the most important benefits of investing in solar panels is the potential energy savings. Since solar panels can last up to 30 years and most homeowners in Maine will pay off their solar panel systems in a little over eight years, you can save thousands in the long run. Solar panels can also increase your home’s resale value by an average of $15,000, which is additional money in your pocket if you sell.
Improved energy independence
A significant benefit of installing solar panels is that you can achieve greater energy independence, meaning you’re not entirely reliant on the traditional electricity grid for energy supply. Since solar arrays don’t produce energy without sunlight, most solar-powered homes remain connected to the grid for energy use when solar panels aren’t generating at night.
However, solar owners aren’t wholly dependent on the grid, leading to lower power bills. When electricity demand is high, you can worry less about price hikes with solar panels. In addition, solar generation combined with solar batteries or a solar generator can reduce the risk of a power outage caused by storms or downed power lines.
Go green
Switching to solar is an excellent choice for homeowners looking for sustainable alternatives to traditional energy. Traditional electricity generation burns fossil fuels, which emit greenhouse gases and contribute to climate change. Since the energy solar panels produce is renewable and cleanthey positively impact the environment by reducing your home’s carbon footprint.
Solar financing options
You may wonder whether purchasing solar panels, leasing, entering a power purchase agreement (PPA), or subscribing to a community solar project makes more sense.
You will likely experience the greatest long-term savings if you buy solar panels instead of leasing them. Purchasing is the only way to access helpful incentives like the federal solar tax credit. However, if the upfront costs are too high, leasing is a good option to open access to solar for more homes and families. The following table details the pros and cons of these financing options.
Payment method
Benefits
Drawbacks
Cash purchase
Full ownership of solar panels, more long-term savings, eligible for incentives, electricity bill savings
High upfront cost, expensive to relocate solar panels to a new home, uncertain return on investment if you sell your home a few years after installation
No upfront costs, power home with clean energy, electricity bill savings
No solar ownership
What to look for in a solar contractor
When considering a solar contractor, look for a licensed installer with exceptional reviews and third-party accreditation. You should also prioritize a solar installer from trusted manufacturers with high-quality products, like solar panels and inverters. Look for solid warranties on services and products and determine what panel maintenance will look like. Compare quotes from multiple installers before signing a contract to ensure you get the best deal.
Maine solar panel companies
Maine currently has 56 solar companies in the state, providing a variety of installers to choose from. Before selecting a solar installer, you should research your options for home solar panels and obtain multiple quotes.
SaveOnEnergy is an energy marketplace that partners with top-tier solar companies to bring curated solar options to customers. Fill out our solar estimator or call us at the phone number on your screen to learn more about your options.
Here are some of the top installers available to Maine solar customers:
25-year product, performance, and quality of work warranties
Beware of free solar panel scams in Maine
There is no such thing as free solar panels. When companies claim to provide free solar panels, it can be misleading and even fraudulent. The U.S. Department of Energyclarifies that the federal government does not offer free solar panels nor encourage private companies to do so.
Solar panels require advanced manufacturing, using expensive raw materials like lithium and silicon, which translate into high upfront costs. As mentioned previously, Maine’s average residential solar system costs around $22,800 for a 6-kilowatt system. Solar companies use three main ways to charge customers for installation — cash payment, lease agreements, or financing through a loan.
When a solar company offers free solar panels, it could mean they will install them on your property without an upfront payment. You must sign a lease or power purchase agreement (PPA) with the solar company for a long-term period.
Important solar installation factors to consider
Solar power can be an excellent investment, but it may not suit everyone. Before installing solar panels in your home, there are a few things to consider, including the quality of your roof, hours of sunlight, and homeowners association (HOA) restrictions.
Your roof: According to the Department of Energy, solar panels are most effective on south-facing roofs in the U.S., with slopes between 15 and 40 degrees. They are also more cost-effective on roofs in good condition that don’t need a replacement or repair soon.
Amount of direct sunlight: The sunlight your home receives dramatically impacts how much you can save. Heavy shading around your property can impede solar generation.
Your HOA: Maine’s solar easement laws ban any prohibition on installing or using solar panels and creating access to direct sunlight. However, these provisions do not cover the use of solar panels on residential properties shared with third parties or common areas of condominiums. Therefore, check your HOA limitations and requirements before going solar. Your installer may be able to help you navigate potential roadblocks.
Long-term savings and payback period: Calculate your potential savings and how long it will take for those savings to offset your initial investment. Consider factors such as electricity rate trends, the system’s lifespan, and maintenance costs to assess the financial benefits.
According to Find Energy, the average homeowner in Maine would pay around $22,800 for a 6-kW solar system before using government incentives. With the 30% solar tax credit, the price of solar panels drops to about $15,960 on average. Your home’s size, energy consumption habits, roof orientation, labor, permitting fees, and other factors will determine the exact cost of solar panels in Maine.
Solar panels can help you save money on energy, but they may not always be the right fit for everyone. To determine if solar panels are worthwhile, consider your home’s solar exposure and energy usage habits. While the upfront investment in solar can be pricey, the panels can help you save money on energy bills over time and lead to thousands of dollars in return on investment over the lifetime of solar panels. Solar panels can also improve your home value. Solar is a great investment if the conditions are right.
How much money you save with solar will depend on your current energy consumption and the amount of energy your solar panels generate. You could save thousands during your solar panels’ lifespan, typically 25–30 years. Remember that electricity rates increase over time, so your savings could be even higher than projected after 20 years.
SaveOnEnergy can help you find the right solar installer. We can estimate savings and help you find a reputable solar installation company near you. To start the process, you can complete this form or call the number on your screen, and we’ll connect you with a local solar installer.
Maine provides a property tax exemption for solar energy equipment and components, meaning the assessed value of the solar system is exempt from your property taxes. The exemption applies specifically to the portion of property value attributed to installing the solar system on a residential or commercial property, not the entire property tax assessment.
