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Is Solar Worth It in Maine in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Maine homeowners — without the federal ITC.

Cost Per Watt

$3.30

installed

Electricity Rate

$0.180

per kWh

Payback (No ITC)

15.9 yr

current reality

Payback (With 30% ITC)

11.1 yr

hypothetical

25-Year ROI

57%

return on investment

Incentive Breakdown — Maine

Available incentives for a typical 7kW residential solar system in Maine

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Maine does not offer a state tax credit for solar installations.

SREC Market

Not Available

Maine does not have a traditional SREC market.

Property Tax Exemption

Solar system value excluded from property tax assessment

Sales Tax Exemption

Solar equipment exempt from state sales tax

Low-Income Program

Available

Maine offers programs to help low-income households access solar energy.

Key Incentives: Property tax exemption for solar; Sales tax exemption on solar equipment; Low-income solar program available.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Maine

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$3.30/W
Gross Cost
$23,100
Federal ITC
$0
Net Cost
$23,100
Annual Savings
$1,452/yr
Payback Period
15.9 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$3.30/W
Gross Cost
$23,100
Federal ITC (30%)
-$6,930
Net Cost
$16,170
Annual Savings
$1,452/yr
Payback Period
11.1 years

Impact: Without the federal ITC, Maine homeowners face a 4.8-year longer payback period — paying $6,930 more out of pocket.

Net Metering Policy — Maine

How Maine compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Maine offers net energy billing at full retail rate for systems up to 660 kW under PUC rules.

Cost Per Watt Benchmark — Maine

Maine Average

$3.30/W

National Average

$3.05/W

Typical 7kW System

$23,100

$2.00/W $3.50/W $5.00/W

Maine's average installed cost is above the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Maine breaks even in 15.9 years. With the former 30% ITC, payback would drop to 11.1 years.

Without Federal ITC

15.9

years to break even

With Former 30% ITC

11.1

years to break even

Production Details

Peak Sun Hours4.1 hrs/day
Production1152 kWh/kW/yr
Annual Production$8,066 kWh
Annual Savings$1,452

Ready to Go Solar in Maine?

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