Maine Solar Incentive Programs
Maine Solar: What's Actually Available in 2026
Maine's combination of high electricity rates and full 1:1 retail net energy billing makes it one of the strongest solar markets in the Northeast, even without the expired federal tax credit.
Full 1:1 Retail NEB
Maine's Net Energy Billing credits every exported kWh at the full retail rate, not avoided cost, not a fraction of retail. CMP customers get ~28¢/kWh; Versant customers get ~32¢/kWh for their exports.
100% Property Tax Exempt
Maine law (36 M.R.S. § 655) mandates a 100% property tax exemption on solar equipment statewide, not optional by municipality. File by April 1 with your local assessor to claim it.
No sales tax exemption
Maine has no sales tax exemption for solar equipment. Budget for the 5.5% sales tax on taxable equipment.
No Federal ITC Expired
Section 25D expired December 31, 2025. The 30% federal tax credit that drove Maine solar adoption in 2023 to 2025 is gone for 2026 residential installations. This meaningfully extends payback periods.
No No State Income Credit
Maine does not offer a state income tax credit for solar. Efficiency Maine (the state energy agency) does not offer residential solar rebates either, its programs focus on heat pumps and weatherization.
Moderate Sun, High Rates
Southern Maine gets ~4.2 peak sun hours/day; northern Maine averages ~3.8. Lower than the Southwest, but Maine's high electricity rates still produce excellent ROI on every kWh generated.
Maine Net Energy Billing (NEB): The Full Picture
Maine calls its solar export program "Net Energy Billing" rather than Net Metering, but the economics are equivalent or better, every kWh you export earns a full retail-rate credit on your bill.
How Maine NEB Works
Maine's NEB program is set by the Maine Public Utilities Commission (MPUC) and applies to all investor-owned and cooperative utilities. Solar systems export surplus generation to the grid and receive kWh credits that offset kWh-based charges on your bill; fixed (non-kWh) charges still apply.
- 1:1 credit for all exported kWh
- Credits applied to full retail rate
- Monthly excess rolls forward up to 12 months
- No enrollment cap for residential
- LD 1777 does NOT affect rooftop solar
- Unused credits at annual true-up expire (no cash payout)
- Credits expire on a rolling 12-month basis
- Size your system to ~90 to 100% of annual usage
- Minimum monthly bill still applies (~$8 to $9)
- LD 1777 (2023) changed community solar compensation
- Rooftop solar (on-site NEB) is UNAFFECTED
- Pre-2024 community solar: grandfathered at original rates
- New community solar after Jan 1, 2024: changed terms
Maine Utilities: CMP vs Versant Compared
Two investor-owned utilities serve most of Maine. CMP covers southern and central Maine; Versant Power (formerly Emera Maine) serves the northern and eastern regions with significantly higher rates.
Central Maine Power (CMP)
CMP serves approximately 630,000 customers in the southern two-thirds of Maine. It is owned by Avangrid (a subsidiary of Iberdrola). CMP's rates are lower than Versant's but still among the highest in New England.
- Level 1 interconnection under MPUC Chapter 324 (simplest path, 2 to 4 week process)
- Your installer files interconnection application; CMP reviews and approves
- CMP installs bidirectional meter (no charge to customer)
- Confirm current interconnection fees directly with CMP: 800-750-4000 or cmpco.com
Versant Power
Versant Power (formerly Emera Maine) serves about 165,000 customers in northern and eastern Maine. It has historically had the highest electricity rates of any large Maine utility, which paradoxically makes solar economics more compelling for its customers.
| Factor | Central Maine Power (CMP) | Versant Power |
|---|---|---|
| Service Territory | Southern/central Maine (Portland, Augusta, Lewiston) | Northern/eastern Maine (Bangor, Aroostook County) |
| Residential Rate (2026) | ~28.3¢/kWh all-in | ~32¢/kWh all-in (estimate, confirm with Versant) |
| NEB Export Credit | Full retail (~28.3¢/kWh) | Full retail (~32¢/kWh) |
| Annual Savings (8 kW, 9,000 kWh) | ~$2,547/yr | ~$2,880/yr |
| Annual True-Up | March | Billing anniversary |
| Interconnection Standard | MPUC Chapter 324 | MPUC Chapter 324 |
Maine Solar Tax Benefits
Maine's statewide property tax exemption is one of the strongest in the country, it's mandatory, not optional by municipality. Maine has no sales tax exemption for solar equipment, so budget for the 5.5% sales tax.
Property Tax Exemption, Statewide, Mandatory
Statute: 36 M.R.S. § 655; clarified by Maine Revenue Bulletin No. 29 (eff. April 1, 2025)
- 100% property tax exemption on solar equipment, statewide and mandatory in all municipalities
- Covers solar panels, inverters, batteries, charge controllers, wiring, and mounting hardware
- Does NOT include meters, transmission lines connecting to grid, or land
- Applies to residential arrays; commercial arrays qualify only under conditions in Bulletin 29
- Action required: File a report with your local assessor by April 1st of the first tax year you claim the exemption. Use the form from the Maine State Tax Assessor
- Solar adds $15,000 to $30,000 to home value in Maine; exemption protects ALL of that from additional property tax
No Sales Tax Exemption
Maine sales tax rate: 5.5% (36 M.R.S. § 1811)
- Maine law has no sales tax exemption for solar panels, inverters, racking, wiring or batteries (the former solar equipment exemption in 36 M.R.S. § 1760 was repealed)
- Cost example: a $22,000 system adds about $1,210 in sales tax
Tip: ask installers to show sales tax as a separate line so you can compare quotes.
No State Income Tax Credit
- Maine does not offer a state income tax credit for solar installations
- Efficiency Maine's programs focus on heat pumps, weatherization, and EV charging, not solar rebates
- No state cash rebate program for residential solar in Maine
- No solar renewable energy certificate (SREC) program generating ongoing income
Federal ITC (Section 25D) Expired
- The 30% federal residential solar tax credit expired December 31, 2025
- 2026 installations receive $0 federal credit on homeowner-owned systems
- Exception: Leased systems and PPAs, the third-party owner may still claim the commercial ITC (Section 48E) and pass savings to you through lower monthly payments. Ask your installer about lease/PPA options.
- Section 48E for commercial/third-party systems runs through at least December 31, 2027
Maine Solar Payback: What to Expect in 2026
Maine's 1:1 full-retail NEB means every kWh your solar produces is worth exactly what you'd pay to buy it. High electricity rates make the economics unusually strong for a northern state.
CMP Customer, Southern Maine (Portland area)
Versant Customer, Northern Maine (Bangor area)
Sizing Strategy: Size to Annual Usage, Not Monthly
Because unused credits expire at the annual true-up (March for CMP), don't significantly oversize your system. A system producing 95 to 100% of your annual usage is optimal, you'll self-consume or earn credits for nearly all production, with minimal losses at true-up. Oversizing by 20%+ wastes investment since unused kWh credits expire after 12 months with no payment.
Maine Solar Incentive Scorecard
| Incentive | Status | Value | Source |
|---|---|---|---|
| Net Energy Billing (1:1 retail) | Active | Full retail rate: ~28¢ (CMP) / ~32¢ (Versant) per kWh | MPUC NEB program |
| Property Tax Exemption | Active, Mandatory Statewide | 100% exemption on solar equipment value | 36 M.R.S. § 655; ME Revenue Bulletin 29 |
| Sales Tax Exemption | None | No solar sales tax exemption | 36 M.R.S. § 1760 |
| State Income Tax Credit | None | $0 | No ME program |
| State Cash Rebate (Efficiency Maine) | None for Solar | $0 | Efficiency Maine focus: heat pumps, weatherization |
| Community Solar (new subscriptions) | Changed Terms Post-LD 1777 | Rooftop solar unaffected; new community solar: reduced rates | Maine LD 1777 (2023) |
| Federal ITC (Section 25D) | Expired 12/31/2025 | $0 (owned systems); leased systems may benefit from Section 48E | IRC Section 25D sunset |
Get Maine Solar Quotes
Maine's 1:1 NEB and mandatory property tax exemption make it one of the better solar markets in the Northeast. Compare quotes from multiple installers to find the right system size for your usage.
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