Maine has no state solar tax credit. The real value in 2026 comes from three things:
- Net Energy Billing (NEB): rooftop solar earns 1:1 retail-rate bill credits, unchanged for 2026.
- Property-tax exemption: the value solar adds to your home is exempt (36 M.R.S. Section 655).
- High power prices: Maine homes pay about 28.63 cents per kWh, so each kWh you make saves more.
Maine is one of the sunnier-paying solar markets in New England, even though the state gives you no tax credit for going solar. Homeowners here often expect a Maine version of the incentives they read about in other states, and that expectation is worth resetting up front: there is no Maine state solar income-tax credit, and the 30% federal homeowner credit ended after 2025. What Maine does have is a strong bill-credit program called Net Energy Billing, a property-tax exemption that protects your home value, and some of the highest electricity prices in the country, which is what makes solar pay here. This page covers what Maine solar incentives really look like in 2026, how Net Energy Billing credits your exports, what the 2026 law LD 1777 did and did not change, and how to pay for a system honestly.
Does Maine have a state solar tax credit?
No. Maine does not offer a state income-tax credit for residential solar in 2026. There is no state rebate check and no state solar tax credit waiting for you at tax time, and it is important not to confuse Maine’s benefits with a credit that does not exist (DSIRE Maine). Maine supports rooftop solar through a bill-credit mechanism and a property-tax exemption instead, which are covered below.
The federal picture changed too, and it applies in Maine like everywhere else. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act (IRS, as of January 2026), so a Maine homeowner who buys solar with cash or a loan in 2026 cannot claim it. Confirm every figure here against the linked source, and ask a tax professional about your own situation. MySolarFY does not provide tax advice.
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What solar costs in Maine, and what your roof makes
Solar pays in Maine mostly because of the expensive power it replaces. The average Maine residential electricity price is about 28.63 cents per kWh (EIA retail sales, residential Maine, as of May 2026), well above the national average. Every kilowatt-hour your roof makes offsets one you would otherwise buy at that high rate, which is the core reason a northern state with real winters still pens out for solar.
Maine gets more sun than people expect. According to MySolarFY’s own analysis (as of August 2026), a 6 kW rooftop system in Portland is modeled to produce about 7,911 kWh a year (NREL PVWatts v8 run, NSRDB typical-year data). At the state average price, that output offsets roughly $2,265 of grid power a year, before any financing. Snow and short winter days cut production in December and January, and your real number depends on your roof’s pitch, orientation, and shading, so estimate your own roof with NREL’s free PVWatts calculator before you size a system. For a full local breakdown, see our Maine solar cost guide.
Maine solar incentives at a glance
Maine’s value comes from a bill-credit program, a property-tax exemption, and the high rate it offsets, not from a tax credit. Here is what each piece does in 2026 and the fine print worth knowing.
| Incentive | What it does | 2026 status | Source |
|---|---|---|---|
| Net Energy Billing (NEB) | Credits the solar energy you export to the grid against your bill | Active; rooftop residential solar earns 1:1 retail-rate credits, with monthly rollover and an annual true-up | Maine PUC |
| Property-tax exemption | Excludes the value solar adds to your home from your property-tax assessment | Active for qualifying solar equipment; you file a report with your local assessor (36 M.R.S. Section 655, subsection V, effective April 1, 2025) | Maine Legislature |
| State solar income-tax credit | A state income-tax credit | None; Maine has no state solar tax credit | DSIRE Maine |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | IRS |
Heads up on the federal change: the 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act (IRS, as of January 2026), so a Maine homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not you.
How Maine Net Energy Billing works in 2026
Net Energy Billing, or NEB, is Maine’s version of net metering, and it is the single biggest reason solar pays here. When your panels make more power than your home is using, the extra energy flows to the grid and your utility credits it to your account. For rooftop residential solar in 2026, those credits are earned at the full retail rate, so a kilowatt-hour you export is worth the same as one you buy back (Maine Public Utilities Commission; U.S. Department of Energy on net metering).
The credits roll over and settle once a year. Unused credits carry from month to month, which lets a summer surplus cover a darker winter month, and at an annual true-up any leftover balance is settled at a lower avoided-cost rate rather than full retail. NEB applies to customers in both major utility territories, Central Maine Power in the south and center of the state and Versant Power in the east and north, though the retail rate you offset differs between them. Because rates and true-up terms can change, confirm the current NEB terms with your utility before you size a system. For the mechanics in depth, see our Maine Net Energy Billing guide, and for southern Maine specifically our Central Maine Power solar breakdown.
| Utility | Rough service area | Net Energy Billing approach (2026) | Source |
|---|---|---|---|
| Central Maine Power (CMP) | Southern and central Maine | Rooftop solar credited at the retail rate, with monthly rollover and an annual true-up; verify current terms | Maine PUC |
| Versant Power | Eastern and northern Maine | Rooftop solar credited at the retail rate, with monthly rollover and an annual true-up; the retail rate differs from CMP, so verify current terms | Maine PUC |
What LD 1777 changed in 2026 (and what it did not)
Maine reformed Net Energy Billing in 2025, and the change worried a lot of solar shoppers, but it targeted community solar, not your rooftop. LD 1777, “An Act to Reduce Costs and Increase Customer Protections for the State’s Net Energy Billing Programs,” was signed into law on June 27, 2025 (Maine Legislature; pv magazine USA). The law restructures how large community solar projects are compensated starting in 2026 to control rising program costs, and it directs the state to design a successor program.
Individual rooftop solar was left alone. The reform changes compensation for community solar arrays, not behind-the-meter residential systems, so a homeowner installing panels on their own roof in 2026 keeps the same 1:1 retail-rate Net Energy Billing they would have had before (Maine Legislature). If you were told the 2025 net-metering reform ends rooftop solar in Maine, that is not accurate. It is still worth confirming your own utility’s current terms, since the Maine PUC continues to implement the details.
The Maine property-tax exemption for solar
Adding solar can raise what your home is worth, and Maine makes sure that does not raise your property-tax bill. Under 36 M.R.S. Section 655, qualifying solar energy equipment that generates heat or electricity used on site, or exported through a utility under Net Energy Billing, is exempt from local property tax on the value it adds (Maine Legislature, 36 M.R.S. Section 655). The current subsection V took effect April 1, 2025 and applies to systems collocated with a Net Energy Billing customer.
You have to claim it. The exemption is not automatic: you file a report with your municipal assessor before April 1 of the first tax year you want it applied, so ask your installer or town office about the form. It applies statewide, and it does not depend on the federal credit that ended after 2025. For how Maine’s benefits fit the national picture, see our solar incentives overview, and for the full state picture start at our Maine solar hub.
How to pay for solar in Maine
Since there is no state credit and the federal one is gone, how you finance the system decides which benefits you keep. A common misconception is that Efficiency Maine funds solar loans. Efficiency Maine does run low-interest Home Energy Loans, but those cover heat pumps, insulation, and weatherization, and solar panels are not a listed eligible measure, so do not count on an Efficiency Maine loan for the array itself (Efficiency Maine; verify current program terms). For the panels, Maine homeowners typically use a solar loan from a lender or installer, pay cash, or choose a lease or power-purchase agreement.
Ownership is the deciding factor. The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025, so it is not part of any 2026 purchase on any path. If you buy the system with cash or a loan, you own it and keep the Net Energy Billing credits and the property-tax exemption directly. If you lease or sign a power-purchase agreement, a third party owns the panels, you typically pay little or nothing up front, and the company that owns the system claims any commercial credit (Section 48E), not you. Solar is not free on any path, and lease or PPA payments still apply, but a no-up-front option can lower the barrier to entry. See our guide to no-up-front-cost solar in Maine for how those arrangements work, and what the federal solar tax credit change means in 2026.
Is solar worth it in Maine?
For many Maine homeowners, yes, because the fundamentals line up despite the missing tax credit. The state’s very high electricity rate, full retail-rate Net Energy Billing, and a property-tax exemption combine into a solid case, and Maine’s summer sun offsets a real chunk of a high winter bill. The honest catches are that the federal homeowner credit is gone as of 2026, there is no state credit to lean on, winter production is low, and NEB true-up terms can change. Whether it pays for your specific home comes down to your roof, your utility, and your usage. For a deeper look at the numbers, see whether solar panels are worth it and how export credits work in our net metering guide. MySolarFY matches you with licensed Maine installers so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
What solar incentives does Maine offer in 2026? Maine offers Net Energy Billing, which credits the solar you export at the full retail rate for rooftop residential systems, and a property-tax exemption that keeps the value solar adds to your home out of your property-tax assessment (36 M.R.S. Section 655). There is no state solar income-tax credit, and the 30% federal homeowner credit ended for expenditures made after December 31, 2025. Maine’s high electricity rate, about 28.63 cents per kWh, is what makes those bill credits valuable. Confirm current terms with each source before you sign.
Does Maine have a state solar tax credit? No. Maine has no state income-tax credit for residential solar in 2026. Its value comes instead from Net Energy Billing bill credits and a property-tax exemption on the added home value, not from a credit at tax time. These do not depend on the federal credit that ended after 2025, and you should not assume a state credit exists.
How does Net Energy Billing work in Maine? When your panels export more power than your home uses, your utility credits it to your bill. For rooftop residential solar in 2026, those credits are earned at the full retail rate, roll over month to month, and settle once a year at a lower avoided-cost rate for any leftover balance. It applies in both Central Maine Power and Versant Power territories, though the retail rate you offset differs. Confirm the current terms with your utility before you size a system.
Did LD 1777 end net metering for rooftop solar in Maine? No. LD 1777, signed in June 2025, reformed how large community solar projects are compensated starting in 2026, but it did not change Net Energy Billing for individual rooftop systems. A homeowner installing panels on their own roof in 2026 keeps the same 1:1 retail-rate credits. The Maine PUC continues to implement the details, so verify your utility’s current terms.
Does Efficiency Maine offer a solar loan? Not for the panels. Efficiency Maine runs low-interest Home Energy Loans, but they cover heat pumps, insulation, and weatherization, and solar is not a listed eligible measure, so do not count on one to finance an array. For the solar system itself, Maine homeowners typically use a solar loan from a lender or installer, pay cash, or choose a lease or power-purchase agreement. Confirm current Efficiency Maine program terms before you plan around them.
What happened to the federal solar tax credit in Maine? The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Maine homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Maine’s own Net Energy Billing and property-tax exemption were not affected.
Is solar worth it in Maine without a tax credit? Often yes, because Maine’s electricity rate is among the highest in the country and Net Energy Billing credits your exports at that high retail rate, while the property-tax exemption protects your home value. The catches are the federal homeowner credit that ended after December 31, 2025, no state credit, and low winter production. Whether it pays for your home depends on your roof, utility, and usage, so compare local quotes before you decide.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL, IRS, DSIRE, Maine Public Utilities Commission, and Maine Legislature sources as of August 2026; Maine Net Energy Billing and program terms change, so confirm current NEB and financing terms with your utility before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work, and browse more states from our solar by state hub.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025; on a leased system the company that owns it claims any commercial credit. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
