Maine offers some great solar incentives to help lower the cost of installing solar panels on your home and keep your monthly energy costs low. Combine those incentives with below-average solar installation prices, and investing in one of the best solar companies in Maine becomes even more appealing.
While its renewable energy incentives aren’t as plentiful as those in other states, Maine has its share of cost-saving programs. Below, we outline the federal and state-level incentives available for solar installation in Maine.
Get Estimates from Solar Experts in Your Area
Totally free, no phone call required
Clicking “Get Your Estimate” submits your data to Home Service Quotes, which will process your data in accordance with the Home Service Quotes Privacy Policy.
What Are the Available Solar Incentives in Maine?
Maine doesn’t have as many solar tax credits and rebate opportunities as some sunnier states, but residents can take advantage of a few ways to save money when investing in solar panels.
Efficiency Maine Home Energy Loan Program
The Efficiency Maine Trust is a part-independent, part-state agency that supports energy efficiency programs in Maine. Efficiency Maine offers home energy loans, called Property Assessed Clean Energy loans (PACE), to help low-income homeowners pay for energy upgrades such as installing solar panels. The loans are without fees and with interest rates as low as 5.99%.
Eligible participants must:
- Legally live in Maine
- Be applying for solar upgrades on a residential, not commercial, property
- Have a minimum credit score of 580
- Have a maximum debt-to-income ratio of 70%
- Have no recent bankruptcies, foreclosures, or repossessions
An Efficiency Main Residential Registered Vendor must install the upgrades. You can apply on Efficiency Maine’s website. A program administrator will walk you through the next steps if you’re approved. This includes verifying your income, employment, and residence and choosing an approved installer.
We like this program for its ability to help low-income homeowners make an investment that can increase their home value and one day eliminate or reduce their electricity bills without making a large up-front investment. However, PACE financing adds your monthly loan payment to your property tax bill. That means your annual property tax bill will be a larger lump sum, but it’s still far cheaper than paying for a solar system in full up-front. The savings you see on your utility bills should offset the larger tax bill. We recommend this option over a solar lease since you’ll own your system from day one.
More resources:
Maine Property Tax Exemption
Installing solar panels increases your home value, according to a Zillow report. That usually means higher property taxes. However, Maine is a state that waives property tax hikes due to solar-based home value increases. Some states want to encourage adopting solar energy solutions because they reduce the load on the local electric power grid and residents’ carbon footprints through renewable resources.
If installing solar panels or other solar equipment on your home leads to a home value increase, the state won’t tax you on the increased amount. You’ll continue paying the same taxes as if you hadn’t installed solar equipment.
This won’t save you money on your system, but it will save you from an ongoing expense that could make your decision to invest in solar energy more appealing.
More resources:
How Does the Federal Solar Tax Credit Work?
The federal solar investment tax credit (ITC) is one of the most valuable incentives available to solar buyers. This program allows homeowners to deduct a percentage of their solar system’s total cost from their federal tax liability in the year they install it. Since its introduction in 2005, the credit percentage has varied, but it remains at 30% through 2033, providing a significant opportunity for savings.
Note that the ITC is not a rebate but a reduction in the amount you owe in federal taxes. If your tax liability is less than 30% of your system’s cost in the first year, the unused portion can be rolled over to the following tax year. For example, if your solar system costs $25,000, you could receive a $7,500 credit. If your tax liability is lower than that amount, the remaining balance carries forward to the next year.
Only homeowners who purchase their solar system qualify for the ITC. Those who lease their solar system or enter a power purchase agreement (PPA) are not eligible. To claim the credit, you must file IRS Form 5695 with your federal tax return. If you use a tax professional, inform them in advance to ensure proper filing.
Does Maine Offer Net Metering?
Net metering is another way Maine homeowners can save. It doesn’t shave money off upfront but reduces ongoing utility expenses. Most solar buyers have on-grid solar systems, and they send excess power to the grid when their system is producing more than their home is using. Net metering means they get a one-to-one credit for this excess power to offset their electricity consumption at night and on cloudy days. This prevents you from paying out of pocket for times when you rely on the utility grid.
Learn more about the state’s net metering programs through the Maine Public Utilities Commission.
How Much Do Solar Panels Cost in Maine?
Maine receives less sunlight than many other states, but its solar panel installation costs are below the national average. The average solar panel system in the U.S. costs $16,129. In Maine, a 5-kilowatt system typically costs about $14,969, according to EnergySage. For a more accurate estimate, homeowners can request a personalized quote from a local solar provider.
Homeowners who want to install solar panels but need assistance with the upfront cost have several solar financing options to consider:
- Cash purchase: Paying for the system outright provides the most savings over time by eliminating interest and financing fees.
- Solar loans: Many lenders offer solar-specific loans, allowing homeowners to spread payments over time while still owning their system.
- Solar leases: With a lease, a solar provider owns the system, and the homeowner pays a fixed monthly fee to use the generated power. However, leases do not qualify for tax incentives.
- Power purchase agreements (PPAs): Similar to a lease, a PPA lets homeowners pay a set rate per kilowatt-hour for the solar energy produced, but the provider retains system ownership.
Is Going Solar in Maine Worth It?
Going solar is worth it in Maine. The Pine Tree State has one of the highest electricity rates in the country, so residents stand to see big savings by reducing their dependency on the power grid and relying primarily on solar energy.
The Process of Going Solar in Maine
Before you dive into Maine’s solar incentives, understand how the installation process works. Here’s a step-by-step guide to making the switch to solar energy.
1. Consultation
Begin by contacting several solar providers to evaluate your home’s solar potential. Installers use satellite imaging and software to estimate your roof’s sunlight exposure. After an initial assessment, they’ll schedule an in-person site visit to inspect your roof condition, potential shading, and how many solar panels you need. This step usually takes a few days.
2. System Design
Your installer will design a solar system based on your energy needs, roof space, and budget. You’ll receive recommendations on solar panels, solar inverters, and optional battery storage to maximize efficiency. This design phase typically takes one to two weeks and may involve discussions with the installer to finalize the best setup for your home.
3. Permitting and Approvals
After approving the design, your installer will handle the necessary permits and applications. Maine’s solar permitting process involves compliance with local zoning laws, HOA regulations, and utility company requirements. The approval process usually takes one to two months, depending on your location and utility provider.
4. Installation
Once all approvals are in place, your solar company will schedule the installation. The actual panel installation is often completed within a day or two, but the entire process, from your initial consultation to activation, typically takes one to three months.
5. Final Inspection and Activation
After installation, your solar provider will conduct a final inspection of your panels to ensure they’re functioning correctly. Some installers offer mobile apps for monitoring energy production, while others will train you to read your inverter data and showcase routine solar maintenance. If you’ve enrolled in Maine’s net metering program, you should see electricity bill reductions as excess energy credits apply.
Our Conclusion
Maine is a great state to switch to solar power because of its generous solar incentives and lower installation costs. Start by looking at your typical energy usage and getting a quote from a reputable solar company in your area.
Our research shows that the best solar companies in Maine are Summit Energy and Maine Solar Solutions. We recommend carefully reviewing each company’s policies, warranty coverage, and customer reviews before reaching out. We also suggest getting a quote from at least three companies before deciding.
FAQs About Solar Tax Incentives in Maine
Does Maine offer a state solar tax credit?
Maine doesn’t offer a state-level tax credit for solar buyers. However, the federal tax credit allows home solar system owners to make back up to 30% of their solar investment through their federal tax bill.
Can I get free solar panels in Maine?
Yes. You may be eligible for a free solar panel installation in Maine, but you’ll still have to pay for the energy the panels generate. Some Maine solar companies offer solar leasing or PPA programs in which they’ll install the panels for you at no cost, but you’ll still need to pay them leasing fees or for the energy the panels produce.
What is the President Biden solar incentive?
President Biden’s Solar for All Justice Initiative aims to ensure that disadvantaged communities that are underserved and overburdened by pollution receive 40% of the overall benefits of certain federal investments. The program supports the move toward solar energy use to reduce carbon emissions in these areas between now and 2035.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
