Maine does not pay you to install solar panels. Its incentive sits on your electric bill. Each unit of solar power you send to the grid cancels one unit you buy later. Maine calls this net energy billing. The rule is statewide, for Central Maine Power and Versant Power customers alike. Two smaller benefits need action from you: a property tax exemption and yearly payments for a home battery.
Recently changed: Maine closed net energy billing to new large projects that connect on the utility’s side of the meter after December 31, 2025. Rooftop and backyard systems at a home are not affected. Since July 29, 2026, small plug-in solar kits are legal without utility approval. The federal tax credit for home solar ended for systems finished after December 31, 2025.
What does Maine give a home with solar panels?
Three things, and none of them is a check for the panels.
| Incentive | What it is worth | What you must do | The catch |
|---|---|---|---|
| Net energy billing credits | One kWh credit for each kWh you send out. Example: 100 kWh of credits cancel about $24.68 of charges on a Central Maine Power bill | Your installer applies to the utility. You sign the utility’s net energy billing agreement | Unused credits expire after 12 months. Fixed monthly charges stay |
| Property tax exemption | Your town does not tax the value the solar equipment adds to your home | File the application with your town assessor by April 1 | Not automatic. The system must be running on April 1 |
| Battery sharing payments | $126 to $180 a year for each kW your battery shares. Example: 3 kW earns $480 a year to $540 a year | Buy a battery from a listed maker and enroll in its app | Paid by the battery maker, not by the state. No upfront rebate |
A typical Maine system costs about $14,430. No state program lowers that price. The federal tax credit for home solar ended for systems finished after December 31, 2025.
How do net energy billing credits work on a Central Maine Power or Versant bill?
Net energy billing is Maine’s name for net metering: your utility counts the solar power you send to the grid and credits you for it. The Maine Public Utilities Commission, the state’s utility regulator, sets one rule for every utility.
Homes get credits in kWh, not in dollars. Your bill has two kinds of per-kWh charges: supply (the power itself) and delivery (the poles and wires). A kWh credit cancels both for one kWh. So a credit is always worth what a kWh costs you in the month you use it.
Example: your panels send out 100 kWh more than you use in July. You get 100 kWh of credits. In January they cancel 100 kWh of use. With Central Maine Power (CMP), that is about $24.68 of charges at the rates in the table.
| Utility | Price per kWh (supply plus delivery) | 100 kWh of credits cancel | Fixed charge you still pay |
|---|---|---|---|
| Central Maine Power | 24.68 cents | about $24.68 | $27.37 a month |
| Versant Power, Bangor Hydro District | 30.35 cents | about $30.35 | $22.41 a month |
| Versant Power, Maine Public District | 29.66 cents | about $29.66 | $22.76 a month |
Rates are from the Maine Public Utilities Commission’s table dated July 1, 2026. They use the standard offer, the default power supply for homes that have not picked another supplier. CMP’s fixed charge already covers your first 50 kWh each month. Versant’s covers the first 100 kWh.
Watch out: Credits only cancel per-kWh charges. They never turn into money. Any credit you have not used after 12 months expires, and the utility pays you nothing for it.
Size the system to what you use
Because credits expire, a bigger system is not always better. A typical Maine system of 4.81 kW makes about 6,600 kWh a year. Compare the yearly kWh in your quote with the kWh on your last 12 bills. If you plan a heat pump or an electric car, tell the installer, because your use will rise.
Owned, leased or under a PPA
Net energy billing covers a system you own and one you lease. It also covers a PPA (power purchase agreement), where a company owns the panels and sells you their power. In a lease or PPA the credits still land on your utility bill, but your contract sets what you pay the company.
The utilities’ standard agreements let you pick a term of up to 20 years. Ask your installer which term your agreement will show.
Source: Maine Public Utilities Commission, Net Energy Billing
Small local utilities
Maine also has consumer-owned utilities, such as electric co-ops and town power districts. They follow the same credit rule, with a system limit of 100 kW unless the utility allows more. Processes differ, so call the utility before you sign.
See what a right-sized system costs at your Maine address
Your ZIP code starts a quote request with installers who work in your utility’s area. Ask them to size the system to your last 12 months of use, because extra credits expire.
- Your utility sets the valueA kWh credit offsets more money on a Versant bill than on a Central Maine Power bill. A quote should name your utility.
- No cost to compareRequesting quotes is free, and you never have to sign.
- Shared with matched installersYour details go to the installers you are matched with.
Do solar panels raise your property tax in Maine?
Not if you claim the exemption. Sales tax is a different story.
Property tax: file by April 1, once
Maine exempts the value that solar equipment adds to your property from local property tax. The law is 36 M.R.S. § 655(1)(V) and § 656(1)(L). It has no end date. The current rules apply to tax years from April 1, 2025.
A home system qualifies in one of three ways. All its power is used on site. Or it sits on the same property as the net energy billing customer who takes at least 50% of its output, which is how most rooftop and backyard systems work. The third way is for off-site arrays with a utility connection agreement signed before June 1, 2024.
You must apply. Fill in the Application for Renewable Energy Equipment Exemption, a Maine Revenue Services form, and give it to your town’s assessor, the official who sets property values, by April 1 of the first year you claim it. You do not file again each year. You file again if the home is sold or the equipment changes.
What is it worth? Your assessor decides how much value the equipment adds. Maine Revenue Services accepts three standard values for home systems: $4,000, $9,000 or $15,000, by how much of the home’s power the system covers. Example with a made-up tax rate: at $15 for every $1,000 of value, a $9,000 value would cost $135 a year in tax. The exemption removes that. Your town’s real rate is on your tax bill.
Watch out: The system must be running on April 1 to be exempt for that tax year. Panels that are still being installed on that day wait a year. Batteries that store the panels’ power can be covered. Meters, the wiring after the inverter (the box that turns solar power into household power) and land are not.
Source: Maine Revenue Services, Property Tax Bulletin No. 29
Sales tax: no solar exemption
Maine has no sales tax exemption for solar equipment. The old one was repealed in 1985. Maine’s general sales tax rate is 5.5%. Ask your installer to show how sales tax is handled in the quoted price, so it does not appear later as an extra.
What does Efficiency Maine pay for a home battery?
Efficiency Maine gives no upfront rebate for a home battery. It funds yearly payments instead. You let your battery maker send some of your stored power to the grid when demand is high. The maker pays you once a year for what you shared.
The payment is set per average kW. That is the average power your battery gives across the year’s events. Most of the 15 listed makers pay $180 per average kW a year. Tesla and FranklinWH pay $160. Enphase pays $126 to $180. Example: a battery that averages 3 kW earns $480 a year to $540 a year.
Efficiency Maine’s own example puts a 15 kWh battery at about $5,000 over 10 years, if it joins every event. The list showed 224 Maine customers enrolled on September 17, 2026.
- Who can join: any home on a Maine utility’s residential rate with a grid-connected battery from a listed maker. Solar panels are not required.
- How often: at least 2 events a month and no more than 60 a year. Each lasts 3 hours, usually on a weekday evening.
- Skipping an event: you may opt out, but a skipped event counts as zero in your yearly average. That lowers your payment.
- Your contract: it is with the battery maker. The maker decides when it pays and how long your contract runs. Efficiency Maine signs 10-year contracts with the makers, but it is not a party to yours and does not guarantee the payments.
Watch out: With one-for-one credits, a battery does not raise the value of your solar power much. In Maine a battery earns its keep through backup power, these payments and a time-of-use plan, a rate that charges less at quiet hours. Check the maker is on Efficiency Maine’s list before you buy.
What can Maine renters and homes with shaded roofs use?
- Community solar: you subscribe to a share of a solar farm in your utility’s area. Its kWh credits cancel kWh on your CMP or Versant bill, and you pay the solar company for them. The state’s Public Advocate says these plans are often designed to save 10% to 15% over a year. No new farms of this kind can join since December 31, 2025, but existing ones can still take subscribers. Use a company on the Public Utilities Commission’s registered list, ask for the standard disclosure form, and join only one project. You can cancel within 5 days of your first bill.
- Plug-in solar: since July 29, 2026, you may plug a certified solar kit into an outlet without asking your utility. The limit is 420 watts per address, or 1,200 watts if a licensed electrician installs it on its own circuit. Above 420 watts, you send the Plug-In Solar Form to your utility within 30 days. These kits earn no bill credits.
- Association and town rules: if you own your home, rules adopted after September 30, 2009 cannot ban solar panels on it. They can set reasonable limits. Older rules are not covered, and neither are shared areas of a condominium.
Watch out: Anyone who sells community solar door to door or by phone is a private company, not your utility and not a state program. Check the name on the Public Utilities Commission’s list first.
When Maine’s solar benefits will not reach you
- Your system makes more than you use. Credits left after 12 months expire with no payment. Oversizing is the most common way to lose money here.
- You miss April 1. No application at the assessor’s office by that date means the solar value can be taxed for that year. A system not yet running on April 1 also waits a year.
- You expect credits to cover the whole bill. The fixed monthly charge stays: $27.37 a month with Central Maine Power, $22.41 a month or $22.76 a month with Versant Power.
- You buy power from a supplier that does not do net energy billing. The standard offer must credit you. Other electricity suppliers take part only if they agree to. Ask yours before the system is switched on.
- Your battery is not from a listed maker, or you skip events. Only the 15 makers on Efficiency Maine’s list pay. Every skipped event counts as zero.
- You are waiting for Maine Solar for All. The federal government ended Maine’s $62 million award in August 2025. There is nothing to apply for.
From quote to first credit: the Maine paperwork in order
- Before you sign: match the system to your bills. Add up the kWh on your last 12 electric bills. Compare the total with the yearly kWh in the quote.You, with your installer.
- Your installer applies to connect. This is the interconnection application, the request for the utility’s permission to connect your system to its lines. It goes to Central Maine Power, Versant Power or your local utility.Your installer.
- You sign the net energy billing agreement. Credits start only after the utility approves the system and it is switched on.You and your utility.
- File the property tax application. Give the Application for Renewable Energy Equipment Exemption to your town assessor by the first April 1 after the system is running. Keep a copy.You.
- If you add a battery: enroll in the maker’s app. The maker then runs the sharing events and pays you once a year.You. The battery maker pays.
- Read your bills for the first year. Check that kWh credits appear and carry over. If a pile of credits is near 12 months old, use more power or accept the loss.You.
Compare Maine quotes sized to the power you use
Enter your ZIP code to request quotes from installers in your area. Ask each one how many kWh the system makes in a year, and compare that with your own bills.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free to requestYou request quotes from local installers. You decide if you go ahead.
- Home questions firstA few questions about your home come first. Name, email and phone come last.
- Bring the April 1 questionAsk each installer when the system will be switched on, so you know which April 1 tax deadline applies.
More Maine solar guides
Maine solar incentive questions
Does Maine Have a Solar Tax Credit?
No. Maine’s 2025 Form 1040ME, Schedule A lists every state income tax credit, and none is for home solar. The federal credit ended for systems finished after December 31, 2025. Maine’s help is one-for-one bill credits, a property tax exemption and battery sharing payments.
Does Maine Have a Solar Rebate?
No. Efficiency Maine, which runs the state’s energy rebates, lists none for solar panels. It funds yearly battery payments of $126 to $180 per average kW, paid through battery makers.
Did Maine End Net Metering?
No. Homes with rooftop or backyard systems still get one kWh credit for each kWh they send out. The change after December 31, 2025 closed the program to new large projects on the utility’s side of the meter. Unused credits expire after 12 months.
Is Solar Exempt From Property Tax in Maine?
Yes, if you apply. File the Application for Renewable Energy Equipment Exemption with your town assessor by April 1 of the first year. The system must be running on that date. Your assessor sets the value that is exempt.
Is There Sales Tax on Solar Panels in Maine?
Maine has no sales tax exemption for solar equipment. The former exemption was repealed in 1985. The general sales tax rate is 5.5%.
How Much Does Efficiency Maine Pay for a Home Battery?
Nothing upfront. Battery makers on Efficiency Maine’s list pay $126 to $180 a year per average kW your battery shares during events. A battery that averages 3 kW earns $480 a year to $540 a year.
Is Maine Solar for All Open?
No. The federal government ended Maine’s $62 million Solar for All award in August 2025. There is no application.
Sources (18)
- Maine Public Utilities Commission, Net Energy Billing (checked September 30, 2026): maine.gov
- Maine Public Utilities Commission Rules, Chapter 313, Net Energy Billing, as amended effective February 23, 2026 (checked September 29, 2026): maine.gov
- Maine Public Utilities Commission, Residential Electricity Rates in Maine, as of July 1, 2026 (checked September 30, 2026): maine.gov
- Versant Power, Net Energy Billing (checked September 30, 2026): versantpower.com
- Maine Legislature, 35-A M.R.S. § 3209-A, Net energy billing: legislature.maine.gov
- Maine Revenue Services, Property Tax Bulletin No. 29, Solar Energy Equipment Exemption, December 30, 2024 (checked September 30, 2026): maine.gov
- Maine Revenue Services, Property Tax Exemptions, with the Application for Renewable Energy Equipment Exemption (checked September 30, 2026): maine.gov
- Maine Legislature, 36 M.R.S. § 1760, sales tax exemptions (checked September 30, 2026): legislature.maine.gov
- Maine Legislature, 36 M.R.S. § 1811, sales tax rate (checked September 30, 2026): legislature.maine.gov
- Efficiency Maine, Small Battery Incentives (checked September 30, 2026): efficiencymaine.com
- Efficiency Maine, Participating Battery Manufacturers, last updated September 17, 2026 (checked September 30, 2026): efficiencymaine.com
- Maine Office of the Public Advocate, Community Solar (checked September 30, 2026): maine.gov
- Maine Public Utilities Commission, Plug-In Solar (checked September 30, 2026): maine.gov
- Maine Legislature, P.L. 2025, c. 644, plug-in solar law, 35-A M.R.S. § 3475 (checked September 29, 2026): legislature.maine.gov
- Maine Legislature, 33 M.R.S. § 1423, solar rights (checked September 29, 2026): legislature.maine.gov
- Maine Department of Energy Resources, Solar for All statement of August 8, 2025 (checked September 30, 2026): maine.gov
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
- Maine Revenue Services, 2025 Form 1040ME Schedule A, Other Tax Credits Worksheet (checked October 1, 2026): maine.gov
