Maine might not seem like prime solar territory at first glance. Long winters and frequent gray skies cause many to dismiss the Pine Tree State‘s solar potential offhand. However, solar energy adoption is growing rapidly in Maine thanks to attractive financial incentives and falling equipment prices. Savvy homeowners stand to pocket upwards of $10,000 over the lifetime of their solar panel system. This guide covers everything you need to capitalize on solar savings based right here in Vacationland.
Solar Power Potential and Payback in Maine
Maine ranks below average for solar resource potential compared to sunnier states, with about 4 sun hours per day on average. This means solar panels will produce less clean energy than they would in Arizona or Florida. However, improving technology and Maine’s robust incentive programs are driving payback periods down to approximately 14 years for a typical 6 kilowatt residential system.
Assuming 25 years of useful life, we can break down the overall cost versus savings outlook in Maine:
- Upfront System Cost: $17,220
- Federal Tax Credit: $5,166
- 25-Year Electricity Savings: $12,750
- Total Lifetime Savings: $10,696
These savings calculations will vary based on factors like your location, system size, electricity usage habits, and more. But the numbers prove solar provides genuine financial value for Maine homeowners when accounting for all the incentives.
How Maine‘s Federal Solar Tax Credit Works
The federal solar tax credit, also known as the investment tax credit (ITC), lets you deduct 30% of your solar installation costs directly from your federal income taxes. This applies to both materials and labor.
For a 6 kW solar array costing around $17,220 before incentives in Maine, the 30% ITC amounts to $5,166 back in your pocket.
The credit stays fixed at 30% through the end of 2032. It then steps down incrementally over two years before phasing out:
- 2033 – 26%
- 2034 – 22%
- 2035 – Expires
To qualify for the full ITC, you must own your solar panel system rather than leasing from a solar provider. The array must also directly power your primary residence in Maine.
Below is a table summarizing potential federal solar tax credit values based on common Maine solar array sizes:
| System Size | Avg. Cost | 30% ITC Savings |
|---|---|---|
| 4 kW | $11,480 | $3,444 |
| 6 kW | $17,220 | $5,166 |
| 8 kW | $22,960 | $6,888 |
| 10 kW | $28,700 | $8,610 |
As you can see, owning solar in Maine can lop nearly one third off your initial system cost through Uncle Sam‘s generosity alone.
Maine State Solar Incentives and Rebates
In addition to the federal solar tax credit, Maine homeowners can capitalize on other financial incentives at the state level:
Net Metering – Maine solar panel owners receive bill credits under the state‘s net metering policy for excess power fed back into the grid. As a recent policy change, credits now apply to up to 40% of your annual electricity consumption.
Property Tax Exemption – Solar installations in Maine are exempt from increased property tax assessments. This avoids thousands in extra taxes over the 25+ year system lifetime.
Let‘s analyze these incentives more closely:
Net Metering Bill Credit Estimates
| System Size | Annual Production | Credits at 40% Limit | 25-Year Savings |
|---|---|---|---|
| 4 kW | 5,000 kWh | 2,000 kWh | $5,000 |
| 6 kW | 7,500 kWh | 3,000 kWh | $7,500 |
| 8 kW | 10,000 kWh | 4,000 kWh | $10,000 |
*Assuming $0.25 retail electricity rate
Based on a 6 kW system, the bill credits from net metering in Maine can save you about $7,500 over 25 years. Not too shabby!
Property Tax Exemption Savings
Solar installations in Maine are 100% exempt from increased property tax assessments. Without the exemption, your taxes could spike $400 per year or more following your solar panel system installation. Over 25 years, the exemption saves approximately $10,000 in property taxes on a typical home.
Between the 30% federal tax credit, net metering bill credits, and property tax exemption, a 6 kW solar array owner can save over $22,500 in Maine!
Community Solar – An Alternative to Rooftop Panels
If installing solar panels on your own roof seems daunting, community solar opens up another avenue to savings.
Maine‘s Community Solar Program lets you subscribe to a portion of a larger shared solar array interconnected with the grid, avoiding the need to install your own system. Savings come back to you directly on your electric bill.
Pros
- No upfront installation costs
- Lock in lower electricity rates
- Minimal commitment or credit checks
Cons
- Typically less savings than rooftop solar
- Requires suitable project nearby
Subscription costs and production vary by project. But participants typically enjoy 15-20% off their current electric rates. This nets thousands in lifetime utility bill savings with no installation, maintenance, or equipment headaches to worry about.
Other Solar Considerations in Maine
Beyond costs and savings, a few other key solar notes for Maine homeowners:
- Get battery storage – Pair solar with batteries to maximize self-consumption of your solar energy during grid outages. Tesla Powerwall is popular.
- Expect solar growth – Maine recently lifted restrictions on renewable energy. Solar permitting and grid access are improving.
- Check zoning – Some Maine towns have ordinances restricting home solar installations. Verify codes with your municipal office before moving ahead.
Ready to Go Solar in Maine?
Hopefully this guide has shown that, despite a reputation for dreary weather, Maine incentivizes solar energy enough to deliver very real cost savings. Lower equipment costs and new state policies only further the case for locking down solar sooner than later.
For help finding local solar installers and estimating your home‘s savings potential, check out third-party marketplaces like EnergySage and Pick My Solar. With some research and number crunching, you‘ll likely discover solar panels in Maine can fit your financial picture beautifully.
