## Solar in Maine

Maine electricity prices have jumped 42% since 2020, and at around 23.9 cents per kWh — well above the national average — many homeowners are looking for a smarter way to manage their energy bills. Solar installation is one of the most effective ways to take control.

Whether you’re just starting to explore or ready to move forward, this guide covers what Maine homeowners need to know about [home solar panels](/content/solar/solar-panels-for-home/index.html) — and what you can realistically expect in the Pine Tree State.

### MAINE by the Numbers

[38th](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States  
[11k](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels  
[4.5](/content/local/peak-sun-hours/index.html) Average daily peak sun hours  
[~$98k](/content/local/maine/#solar-cost-calculator/index.html) Maine average savings over 25 years

## Maine Solar Panel Cost

Curious what solar actually costs in Maine? We’ve built this calculator using real installation data from homes across the state — from Portland to Bangor to Lewiston. It shows both leasing options (like our LightReach program, with no upfront cost) and cash purchase, so you can compare what makes sense for your home.

### Lease vs Cash Purchase

#### System Size  
This system size is designed to offset approximately **100%** of the average electricity usage for a home in Maine.  
**Recommended System:**  
8.50 kW  
Typical for your home size in ME

### Your Monthly Payment  
Estimated monthly cost with LightReach  
$128/mo  
As low as  
$128/mo

**Why Lease Solar?**
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.

- No upfront investment  
- Palmetto handles all maintenance  
- 90% Production Guarantee  
- Comprehensive protection program included

### Cost Breakdown
Your estimated investment

| Item               | Cost           |
|--------------------|----------------|
| System Cost        | $27,148        |
| Cost Per Watt      | $3.19/W       |
| Final Cost         | $27,148        |

### Savings
Your total financial benefit

- Monthly Savings: Average utility bill reduction  
$223
- Payback Period: Break-even point  
9.0 years
- 25-Year Savings  
$97,675

[Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic)

## Key Takeaways
- Maine electricity rates are 45% above the national average, making solar one of the smartest ways to control your energy costs.
- Palmetto’s LightReach lease lets you go solar with no upfront cost — just a low fixed monthly payment, with maintenance handled for you.
- Maine offers strong solar incentives including a property tax exemption, sales tax exemption, and a full retail-rate net metering program.

## Maine Electricity Prices

Maine homeowners pay some of the highest electricity rates in the country — and the last few years have been a wild ride.

Maine’s average rate surged from 17.0 cents per kWh in 2021 to 27.4 cents in 2023 — a 61% jump in just two years. Even after pulling back to 23.9 cents in 2024, Maine still sits well above the national average of 16.5 cents.

Solar panels generate electricity from sunlight, reducing how much you draw from the grid. For Maine homeowners, that means more predictable energy costs — even when utility rates swing unpredictably.

### Price of Energy: Maine vs National Average

| Year | Maine  | US Average |
|------|--------|------------|
| 2021 | 17.0¢ | 16.0¢       |
| 2022 | 27.4¢ | 16.5¢       |
| 2023 | 23.9¢ | 16.5¢       |

### Maine Area Utility Providers

Maine homeowners are served by two main utilities — Central Maine Power and Versant Power. In 2023, both charged significantly more than the national average of 16.0¢ per kWh.

- Central Maine Power: **27.50¢**
- Versant Power: **29.10¢**

### Maine Solar Incentives

Maine homeowners have access to several [solar incentives in Maine](/content/local/maine/#incentives-table/index.html) — from property tax exemptions to net energy billing — that can meaningfully reduce the cost of going solar.

| Incentive | Type | Description | Source |
|-----------|------|-------------|--------|
| Net Energy Billing (NEB) | Net Metering | Full retail-rate bill credits for excess electricity sent to the grid. | [Learn More](https://www.maine.gov/energy/initiatives/renewable-energy/solar-distributed-generation) |
| Renewable Energy Investment Exemption (Property Tax Exemption) | Property Tax Exemption | 100% of the assessed value of qualifying solar and battery storage equipment from local property taxes statewide. | [Learn More](https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs/property-tax-exemptions) |
| Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Sales tax exemption on solar energy equipment purchases. | [Learn More](https://www.maine.gov/revenue/) |
| Efficiency Maine Small Battery Incentive Program | Rebate | Compensation for residential and small commercial battery storage owners. | [Learn More](https://www.efficiencymaine.com/) |
| USDA Rural Energy for America Program (REAP) | Tax Credit | Grants covering up to 50% of project costs for agricultural producers and rural small businesses. | [Learn More](https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency) |

## Maine Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Maine’s long summer days boost solar production, while snowy winters can reduce it. But don’t let the cold fool you — Maine homes can generate impressive solar energy year-round with the right system.

### About the Data
This map shows average daily solar energy across Maine based on historical data.

### What Can the Average Maine Solar System Power?

#### Summer Production (July)

- **3.6 average Maine homes**  
- or Run central AC for **18 hours** AND power all other appliances  
- or Fully charge **5.4 Tesla Model 3** electric vehicles

#### Winter Production (December)

- **2 average Maine homes**  
- or Keep your home heating system running for **15 hours**  
- or Fully charge **3 Tesla Model 3** electric vehicles

#### Annual Production
Over a year, your 10 kW system could:
- **Offset 10 tons** of carbon dioxide emissions  
- or Equal the environmental benefit of **planting 175 trees**  
- or Save approximately **$4,234** in electricity costs

### Solar Installations in Maine

Curious how many of your Maine neighbors have already made the switch to solar? We’ve mapped solar installations across the country down to the address level. Explore the heatmap below to see which communities and neighborhoods in Maine are leading the clean energy charge — your street might surprise you!