Maine has some of the highest electricity rates in the continental United States. That is bad for your monthly bill but good for solar economics, because every kilowatt-hour your panels generate displaces expensive utility power. The trade-off is that Maine’s winters are long, the sun is low from November through February, and the installer market is thinner than in more populous states.
For a typical Maine homeowner, solar panels pay for themselves in 8 to 11 years and generate $15,000 to $25,000 in net savings over 25 years. Here is how the numbers work and what Maine-specific factors affect the outcome.
What Solar Panels Cost in Maine
Solar in Maine costs approximately $3.00 to $3.40 per watt before incentives, which is at or slightly above the national average. A typical 7-kilowatt residential system costs $21,000 to $24,000. The installer market is concentrated along the I-95 corridor from Kittery through Portland to Bangor. Rural areas, particularly in Aroostook County and western Maine, have few installer options and may see higher costs due to travel distances and lack of competition.
| System Size | Installed Cost (Before Incentives) | After Federal Tax Credit |
| 5 kW | $15,000–$17,000 | $10,500–$11,900 |
| 7 kW | $21,000–$23,800 | $14,700–$16,700 |
| 10 kW | $30,000–$34,000 | $21,000–$23,800 |
The federal tax credit covers 30 percent of the total system cost with no cap. On a $22,000 system, the federal credit is $6,600. Maine also exempts solar systems from property tax assessment. The added home value does not increase your property tax bill. In southern Maine communities with higher property values, this exemption is worth approximately $250 to $450 per year.
Maine Solar Incentives Beyond the Federal Credit
Maine does not currently offer a state-level solar tax credit or a statewide cash rebate program. The primary state-level benefit is the property tax exemption. Efficiency Maine, the state’s energy efficiency program, has offered limited solar rebates in the past, but these programs are subject to annual funding and are not consistently available. Do not budget for an Efficiency Maine solar rebate unless one is actively open when you are getting quotes.
Maine has a strong community solar program that allows residents to subscribe to a share of a remote solar farm and receive credits on their electric bill without installing panels on their own roof. Community solar is the right option for Maine homeowners who have shaded roofs, live in rental properties, or cannot afford the upfront cost of a rooftop system. It does not provide the same long-term savings as ownership, but it provides immediate bill savings with no installation cost.
Net Metering in Maine: Restored and Currently Favorable
Maine’s net metering policy has been through significant changes. The previous administration phased out full retail net metering and replaced it with a lower buyback rate. The current administration restored full retail net metering through legislation. The policy is currently favorable to solar owners, with excess generation credited at the full retail rate and rolled over month to month.
Central Maine Power and Versant Power, the two largest utilities in the state, both offer net metering under the current policy. The policy is subject to legislative change. Maine’s net metering history demonstrates that the political environment can shift. A system installed under the current full retail net metering policy is likely grandfathered if the policy changes again, but this is not guaranteed. The interconnection agreement you sign at installation is the legal document that specifies your terms.
How Much Power Maine Solar Panels Generate
Maine receives 4.0 to 4.5 peak sun hours per day averaged across the year. Southern Maine, including Portland, receives approximately 4.3 hours. Northern Maine receives approximately 4.0 hours. A 7-kilowatt system in southern Maine generates approximately 9,000 to 10,000 kilowatt-hours per year.
The seasonal variation is significant. June and July produce 20 to 25 percent of the annual total. December and January produce 25 to 35 percent of summer levels due to short days, low sun angle, and snow cover. The annual production estimate accounts for this. Net metering credits accumulated during the long summer days, when Maine can receive over 15 hours of daylight, offset the winter deficit.
Cold temperatures improve panel efficiency by 5 to 10 percent compared to hot summer operation in southern states. Spring and fall production in Maine benefits from cool air and moderate sun. The cold is not the problem. Daylight hours and snow are the limiting factors.
How Much You Save on Electricity
Maine residential electricity rates average 16 to 18 cents per kilowatt-hour, which is 15 to 25 percent above the national average. Only a handful of states, including California, Connecticut, and Massachusetts, have consistently higher rates. High rates are the primary reason solar works in Maine despite the long winters.
A 7-kilowatt system generating 9,500 kilowatt-hours per year at 17 cents saves approximately $1,615 per year in electricity. Against a net system cost of $15,500 after the federal credit, the simple payback period is 9.6 years. After payback, the system generates pure savings for the remaining 15 to 16 years of its warrantied life.
For homes that heat with electricity, oil, or propane, solar savings are higher because the displaced electricity or the avoided fuel cost is greater. Maine has one of the highest rates of home heating oil reliance in the country. Homeowners who install heat pumps and solar together can offset both their electric bill and a portion of their heating costs, significantly improving the combined return.
25-Year Financial Picture
Over 25 years, a Maine homeowner with a 7-kilowatt system can expect net savings of $18,000 to $28,000 after recovering the initial investment. This assumes electricity rates increase at 2 to 3 percent per year. The inverter replacement at year 12 to 15, costing $1,500 to $2,500, is factored into these numbers.
For homeowners who pair solar with a heat pump to displace heating oil or propane, the combined savings are significantly higher. A heat pump that offsets 500 gallons of heating oil per year at $3.50 per gallon saves $1,750 in fuel costs on top of the electricity savings from solar. The combined solar-plus-heat-pump investment is one of the strongest financial cases for residential energy improvement in the Northeast.
Cash vs. Loan vs. Lease
Cash purchase produces the highest return. A solar loan allows zero-down installation with monthly payments over 10 to 25 years. Maine-based credit unions, including Maine State Credit Union and Town and Country Federal Credit Union, have offered solar-specific loans at rates of 4 to 7 percent. The monthly loan payment is typically competitive with the pre-solar electric bill.
A lease places a third-party-owned system on your roof. The third party keeps the federal tax credit. In a state with high electricity rates, owning the system and capturing the full value of the electricity savings produces significantly higher lifetime returns than leasing.
When Solar Is Not Worth It in Maine
Heavy tree cover. Maine is the most forested state in the country. Many homes are surrounded by pine, spruce, and hardwood trees that shade the roof. A shaded roof produces too little to justify the investment. Tree removal may not be desirable for homeowners who value the shade and privacy.
North-facing roof. At Maine’s latitude, a north-facing roof receives significantly less annual sunlight than a south-facing roof. Production may be 40 to 50 percent lower.
Moving within seven years. The payback period of 8 to 10 years requires staying in the home long enough to recover the investment.
Old roof. Maine’s snow loads, ice dams, and freeze-thaw cycles stress roofing materials. Replace a roof with less than 10 years remaining before installing solar.
Remote location with no installer coverage. Some parts of northern and western Maine are not regularly served by solar installers. If the nearest installer is 100 miles away, the travel costs add significantly to the installation price and may make the project uneconomical.
Frequently Asked Questions
What happens if Maine changes its net metering law again?
Maine’s net metering policy has been politically contested. The current full retail net metering was restored after being phased out, and it could change again. Historically, systems installed under one policy are grandfathered for a period when the policy changes. Your interconnection agreement specifies the rate structure and any grandfathering terms. If you are concerned about policy risk, installing sooner locks in the current favorable terms. There is no guarantee that a future legislature will continue full retail net metering for new installations.
Should I install a heat pump before or after solar?
Ideally, install the heat pump first, run it for a full year, and then size your solar system based on your new higher electricity usage. If you install solar first based on your pre-heat-pump usage and then add a heat pump, your electricity consumption increases and your solar system no longer covers your full annual usage. You can add panels later, but the additional cost of a second installation is higher than sizing the system correctly the first time. If you are planning both, do the heat pump first.
Is community solar a better option than rooftop solar in Maine?
Community solar requires no installation and no upfront cost. You subscribe to a share of a remote solar farm and receive a credit on your electric bill, typically 10 to 15 percent lower than the standard rate. The savings are immediate but limited. Rooftop solar requires an upfront investment but generates far higher lifetime savings because you capture the full retail value of every kilowatt-hour rather than a discounted credit. Community solar is the better choice for renters, homeowners with shaded roofs, and those who cannot afford the upfront cost of rooftop solar. For homeowners with a suitable roof and the ability to finance the upfront cost, rooftop solar produces higher total savings.
