Solar Financing in Maine
Lease vs. Buy vs. PPA — Complete financing guide for ME homeowners
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Going solar in Maine? With electricity rates averaging 27¢/kWh and moderate solar resources, choosing the right financing option can save you $51,450 or more over 25 years. This guide breaks down every option available to Maine homeowners.
Avg Rate
27¢
per kWh
Solar Resource
Moderate
ME
Typical System
7kW
residential
Payback
~5.6 yrs
estimated
Solar Incentives & Tax Credits in Maine
Maine homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that begin construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025.
30% of system cost
Solar Property Tax Exemption
Solar energy systems are exempt from property tax assessment (ME Rev. Stat. Title 36, 654).
100% property tax exempt
Solar Sales Tax Exemption
Solar equipment and installation are exempt from Maine's 5.5% state sales tax.
5.5% sales tax exempt
Efficiency Maine Heat Pump & Solar Incentives
Efficiency Maine offers limited rebates and financing for clean energy home improvements including solar.
Varies
Net Metering in Maine
Maine offers net energy billing at the full retail rate for systems up to 660 kW under PUC rules, though reforms are under consideration.
✓ Maine offers a property tax exemption for solar installations, meaning your property taxes won't increase despite the added home value.
✓ Maine exempts solar equipment from sales tax, saving you money at purchase.
Compare Financing Options in Maine
See how cash purchase, solar loan, lease, and PPA compare based on Maine's average rates:
Solar Financing Comparison for Maine
Based on 27¢/kWh electricity rate and a 7kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $14,700
- Monthly Savings
- $221/mo
- Tax Credit Eligible
- Yes
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $144/mo
- Net Monthly
- $77/mo
- Tax Credit Eligible
- Yes
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $91/mo
- Net Monthly
- $130/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $2,107/yr
- Tax Credit Eligible
- No
Estimates based on average Maine (ME) rates and system costs. For a personalized comparison, use our full financing calculator.
Lease vs. Buy vs. PPA in Maine
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- Eligible for the 30% Federal Tax Credit (~$6,300 on a 7kW system)
- Property tax exempt in Maine
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$51,450
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$38,850)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — Maine
Is solar worth it in Maine?
Yes, solar is an exceptionally strong investment in Maine. With among the highest electricity rates in the nation averaging 27¢/kWh and moderate solar resources, a typical 7kW system can offset most of your household electricity usage. The estimated payback period is 5-7 years, after which you enjoy more than a decade of largely free electricity. maine offers net energy billing at the full retail rate for systems up to 660 kw under puc rules, though reforms are under consideration is the main policy factor to verify with your utility.
What solar incentives are available in Maine?
Maine residents can claim the 30% Federal Solar Investment Tax Credit (worth $6,300 on a typical 7kW system). The state also offers Solar Property Tax Exemption, Solar Sales Tax Exemption, Efficiency Maine Heat Pump & Solar Incentives. Maine offers a property tax exemption, so your property taxes won't rise despite the added home value; Maine exempts solar equipment from sales tax, saving you money at purchase.
Should I lease, buy, or get a PPA in Maine?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 7kW system in Maine, that's about $6,300 back. Buying yields roughly $51,450 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $38,850). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in Maine.
How much does a solar system cost in Maine?
A typical 7kW residential solar system in Maine costs approximately $21,000 before incentives. After the 30% Federal Tax Credit (~$6,300), the net cost drops to about $14,700. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. Maine offers a property tax exemption, so your property taxes won't rise despite the added home value; Maine exempts solar equipment from sales tax, saving you money at purchase.
Does Maine have net metering?
Maine offers net energy billing at the full retail rate for systems up to 660 kW under PUC rules, though reforms are under consideration.
What is the solar payback period in Maine?
The typical solar payback period in Maine is approximately 5-7 years. With a net system cost of about $14,700 after the federal tax credit and annual electricity savings of roughly $2,381-$2,911 (based on 27¢/kWh), most Maine homeowners see full payback within 7 years and enjoy 18+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on Maine average rates, system costs, and the 30% Federal Solar Investment Tax Credit. Actual savings vary by installer, equipment, roof, and utility policy.