With energy costs on the rise, many homeowners in Maine are choosing to install solar panels. This shift is reducing monthly utility bills and supporting a cleaner energy grid.
While there is no direct Maine solar tax credit, homeowners can still benefit from generous federal tax credits and strong state-level incentives. These programs make switching to solar in Maine a smart financial and environmental decision.
In this guide, we explore how solar incentives in Maine work and how to take advantage of them in 2025 and beyond.
Understanding the Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a nationwide incentive. It allows homeowners to deduct 30% of the cost of installing solar from their federal tax bill. This federal tax credit is available through 2032, offering plenty of time to plan your solar project. Make sure to act soon, as this credit is going away—the last day to claim it is January 1, 2026.
Example: A $20,000 solar installation qualifies for a $6,000 tax credit—a direct reduction of your IRS tax bill dollar-for-dollar.
To claim this energy tax credit, you must:
- Install solar panels on a home you own.
- Use new solar equipment, not reused or leased systems.
- File IRS Form 5695 with your federal tax return.
Is There a Maine Solar Tax Credit?
There is currently no direct tax credit for solar from the state of Maine. However, the state does offer strong support through other renewable energy incentives.
These include:
- Net Energy Billing (also called net metering)
- Property tax exemptions
- Sales tax exemptions
Combined, these programs significantly lower the cost to install solar. While other states offer tax credits, Maine’s solar advantages keep it competitive in New England’s clean energy transition.
Maine Solar Incentives You Should Know
Here are the key solar incentives available to Maine homeowners in 2025.
Net Energy Billing (Net Metering)
When solar panels generate more electricity than a home needs, the excess power goes to the grid, and homeowners get credits in return—a system called net metering.
Maine offers two main types of net metering:
kWh Credit Program – You earn kilowatt-hour credits for the energy you send back.
Tariff Rate Program – You receive dollar-value credits based on a set rate.
This system helps reduce your monthly energy costs and speeds up your payback period.
Property Tax Exemption
Installing solar can increase the value of your residential property. However, thanks to Maine’s solar property tax exemption, that added value is not taxed.
This means you enjoy the benefits of a higher home value without paying higher property taxes.
The exemption applies to solar arrays, solar and energy storage systems, and other renewable energy equipment installed on your property.
Sales Tax Exemption
Maine eliminates sales tax on solar panel equipment, giving you an automatic 5.5% savings. This means for a $20,000 solar system, you save $1,100 right away.
This tax exemption makes it easier for more families to adopt solar power in Maine.
Local and Utility-Specific Incentives
Some Maine solar companies and utilities offer their own rebate programs and energy incentives.
These can include:
- Solar loans and financing support
- No-cost solar consultations
- Efficiency Maine programs offering home energy loans
- Incentives for energy upgrades and energy efficiency programs
It’s a good idea to check with your solar providers, municipality, or utility company for current offers. The Maine Department of Environmental Protection and the Maine Public Utilities Commission also provide updates on available energy solutions.
How to Qualify for Solar Incentives in Maine
Don’t miss out on solar savings! Take these steps to secure all available incentives:
Install Solar Panels on Your Home: You must own your home and install a system on your primary or secondary residence.
Work with Certified Solar Installers: Ensure your installer is certified and knowledgeable about Maine’s solar policies. Look for the best solar companies in Maine for reliable service.
Buy, Don’t Lease: Only owner-owned systems qualify for the federal tax credit and many state incentives.
File IRS Form 5695: To claim the investment tax credit, include IRS Form 5695 with your federal tax return. A tax professional can help if needed.
Use Tools and Resources: Platforms like Maine Energy Experts can help you compare system options, estimate savings, and verify eligibility.
Ready to Unlock Your Solar Savings?
Connect with a certified solar installer at Maine Energy Experts to explore your options, compare quotes, and confirm your eligibility. Don’t wait. Go solar in 2025 and take the first step toward energy freedom.
Get Free Solar Quotes!The Financial Impact of Going Solar in Maine
Solar power incentives in Maine offer real financial benefits, including:
Lower Monthly Energy Bills – Save on your utility costs with net energy billing.
High Return on Investment – Most homeowners break even in 7–10 years.
Increased Home Value – Solar panels boost your property’s market value.
Tax Incentives and Rebates – Offset the cost with federal solar tax credits, sales tax exemptions, and more.
Flexible Solar Financing – Use solar loans or rebate programs to reduce upfront costs.
With these benefits, residential solar becomes a smart long-term choice for many Maine residents.
Which Regions in Maine Are Most Suitable for Solar Energy Installations?
Solar panels work across the state, but some areas are especially good for solar energy technologies:
Portland, ME – A strong solar community and solid local support.
Bangor, Maine – Plenty of rooftops and grid access.
Auburn, ME – Ideal for larger solar arrays and solar farms.
Waterville, Maine – Offers energy efficiency and renewable energy initiatives.
Orono, Maine – Active involvement in clean and green projects.
Brunswick, ME – A growing hub for renewable energy solutions.
Lewiston, ME – Increasing solar adoption with strong local support and incentives.
No matter where you live, we offer great opportunities for solar panel installation in Maine.
Conclusion
In conclusion, while there is no direct Maine solar tax credit, there are still many ways to save. The federal solar investment tax credit covers 30% of your costs. Maine adds more value through net energy billing, tax exemptions, and solar incentives.
Ready for a seamless transition to renewable energy in 2025? Maine Energy Experts can guide you every step of the way. Lower bills, reduce emissions, and take advantage of Maine’s solar incentives—all at the same time! Take control of your home energy. Invest in solar today.
