Opening your power bill and catching that sting in your gut isn’t a great feeling — but those same high bills are exactly why solar makes sense.
And thanks to solar incentives in Maine, the cost of going solar can drop by thousands, turning what once seemed out of budget into something many homeowners can now afford.
This article will walk you through the key solar incentives available to Maine homeowners and how they can make switching to solar a lot more realistic.
What Solar Incentives Are Available in Maine?
In Maine, the average home solar system costs somewhere between $15,000 and $25,000 before any incentives are applied. That’s without doubt a huge expense, but once you factor in the available tax benefits and programs, the total out-of-pocket cost becomes much easier to handle.
Federal Solar Tax Credit
The Residential Clean Energy Credit, previously known as the Investment Tax Credit (ITC), lets you claim 30% of your total solar installation cost as a tax credit on your federal income tax.
It covers not just your solar panels, but also inverters, wiring, mounting hardware, and labor, as well as battery storage (if installed at the same time).
As an example, if your entire solar system costs you $15,000. You could get $4,500 back through your taxes.
Now, many homeowners assume this credit means a rebate or expect to receive a check in the mail — that’s not how it works. Again, it’s a direct reduction in the amount of federal income taxes you owe.
To qualify for the tax credit, there are a few basic requirements to meet:
- The system must be installed on your primary or secondary residence in the U.S.
- You must own the system (whether bought outright or financed — not leased).
- You must have tax liability. (If your tax liability happens to be lower than the credit, you can roll over the remainder to future years)
To claim this benefit, you’ll need to fill out IRS Form 5695 when you do your taxes. If you want the full eligibility requirements and the specific steps to claim, refer to the IRS’s Instructions for Form 5695.
Now, we did mention the 30% tax reduction, but this number is set to stay in place through 2032 only. After that, the percentage drops each year until it eventually phases out, unless extended by the federal government.
That means the sooner you take advantage of it, the more you’re likely to save.
Property Tax Exemption for Solar Energy Systems
Maine offers a 100% property tax exemption for solar systems. That means, even if your home’s value increases after installing solar (which it likely will), you won’t pay extra taxes because of it.
This tax exemption applies to both rooftop and ground-mounted systems.
To file for this, file the application form for Renewable Energy Equipment Exemption through your local assessor’s office. Your installer might even help with the paperwork.
This won’t lower the price you pay upfront, but it does keep you from paying higher tax bills down the line.
Sales Tax Exemption for Solar Equipment
If you’re wondering, “Do I have to pay sales tax on my solar system?”, not in Maine!
Solar equipment purchases are 100% exempt from the state’s 5.5% sales tax. That might sound small, but on a $20,000 system, you’re looking at about $1,100 in instant savings.
This exemption applies to the core system parts: panels, inverters, racking, and even batteries if purchased with solar. It also includes accessories and wiring.
It’s typically applied automatically when you buy your system. Although, it doesn’t hurt to double-check that it appears on your quote, just to be safe.
Does Maine Offer Net Metering for Homeowners?
Yes, Maine offers net metering for homeowners — officially known as the Net Energy Billing (NEB) kWh Credit Program — wherein any extra energy your panels send back to the grid earns you credits in return.
What makes Maine’s NEB program especially appealing is that both major utility providers, Central Maine Power (CMP) and Versant Power, use the traditional one-to-one credit system.
That means the value of every extra kilowatt-hour your system sends to the grid matches the full rate you’d normally pay to buy it.
This agreement is considered one of the best in the country, especially since many states only offer credits that are worth about half the retail rate (or even less).
If your solar setup is well-matched to your household needs, your monthly bill could end up showing just the basic charges like service, metering, and connection fees, with little or nothing charged for actual grid electricity.
Are There Battery Storage Incentives in Maine?
Maine doesn’t currently offer any state incentives or rebates solely for battery storage. However, if you install a battery together with your solar system, it qualifies for the 30% federal tax credit.
What is Maine’s “Small Battery Management” Program?
The Small Battery Management program is a pilot program by Efficiency Maine that allows homeowners to receive annual incentives for sharing their battery power with the grid during peak demand periods.
Participants receive $100 for each kilowatt (kW) of average power their battery contributes during these peak events. So, if your battery consistently discharges an average of 5 kW during designated events throughout the season, you would earn $500.
Here’s how it works:
- You install a battery system from a participating manufacturer and enroll in the program.
- During periods of high grid demand (typically summer), Efficiency Maine will automatically discharge your battery to support the grid.
- You receive compensation in return.
Is it worth joining? It depends. If your goal is backup power during outages, you might not want to give up battery capacity to the grid. But if your battery often sits unused, this is a way to put it to work while earning extra.
Are There Free Solar Panels in Maine?
Let’s get this out of the way: No, there are truly no “free” solar panels in Maine — and the government isn’t handing them out either.
When solar is marketed as “free,” it usually refers to solar panel contracts like solar leases or Power Purchase Agreements (PPAs).
These are setups where a solar company installs panels on your roof with no upfront cost (hence “free”), and you agree to either pay a fixed monthly rate or buy the power your system generates at a lower rate.
The catch? You don’t actually own the system — and that can make a big difference, as we emphasized in our solar leasing pros and cons article. In most cases, you’re better off buying your panels outright or financing them through a loan.
Final Thoughts
Maine’s solar incentives might not come with flashy rebates or big bonus checks like some neighboring states, but what it does offer — federal tax credits, tax exemptions, and full-value net metering — can still dramatically bring your solar costs down.
And that matters more than ever when you consider that utility rates rise almost every year. The sooner you install solar, the sooner you can lock in those savings and avoid paying more for power that could’ve been free from your roof.
If you’re ready to see what solar could look like for your home, request a quote today. Quote for Solar will connect you with three competitive bids from trusted, vetted local installers — so you can make the best decision with confidence.
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