Portland, ME Solar: 2026 Costs, Incentives & Savings
Solar Power in Portland
If you live in Portland, Maine, you have probably noticed your electricity bill climbing. Maine residential rates now average 23.89 cents per kWh, well above the national average of 16.6 cents per kWh. That has many local homeowners looking for a way to take more control over their energy costs.
Solar installation in Portland offers a proven path forward. In this guide, we will walk you through how home solar panels work, what to expect from the process, and how to decide if solar is the right fit for your home.
MAINE by the Numbers
38th Most residential solar in the United States
11 Households have installed solar panels
4.5 Avg peak sun hours per day
~$98k Portland average savings over 25 years
How Much Do Solar Panels Cost in Portland, ME?
Curious what solar really costs in Portland? This calculator uses our firsthand installation data from across Greater Portland—including Westbrook, South Portland, Falmouth, Cape Elizabeth, and Scarborough—to give you a clear, local estimate. No guesswork, just real numbers from homes like yours, right here in Maine.
Lease Cash Purchase
Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Maine.
Recommended
System
8.50 kW
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
System Cost
$27,148
Price per Watt
$3.19
Final
Cost
$27,148
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$223
Payback Period
Break-even point
8.9 years
25-Year
Savings
$97,676
Based on Palmetto Solar installations in Maine. Current electricity rate: 23.9¢/kWh. Assumes 100% credit of retail rate.
Palmetto Reviews
We have had such a great experience with Palmetto. Our solar panels went up without complication and we have now had 2 full months and our APCO bill has been nothing more than our extended warranty for outside wiring. Our monthly payment to Palmetto even went down $20 before we made the first payment! It cost us absolutely NOTHING to get started either. I didn’t believe it possible but it’s true and I would do it for every home I live in from now on! They look good too! They don’t stick out like I’ve seen others do.
Crystal Royall
North Carolina, North Carolina
On the day of install I met the team at the door, they introduced themselves. They were all professional and greeted my family with a smile. They let us know exactly what to expect and answered any questions we had. They remained professional throughout the install. After they had completed the job they explained all the added equipment and briefly explained their functions. I had to bless them with some cold water before they left – which they all thanked and appreciated. Would definitely recommend these guys 10x over!!!!
Phillip Ramos
Fall River, Massachusetts
Palmetto Solar is a fantastic solar company to work with. They provide great communication every step of the way. Customer service is excellent! Keeping their customers fully informed of just how simple the solar install and payment setup is, plus keeping my expectations of the process very simple. They are available to speak to, making it easy to understand how things work once all is completed. I highly recommend Palmetto Solar.
Maria Margaritis
Massachusetts, Massachusetts
Key Takeaways
- Portland’s high electricity rates make solar worthwhile—Maine homes pay about 23.9¢ per kWh, well above the national average of 16.5¢, giving solar strong long-term savings potential.
- Maine incentives lower your solar costs through full retail-rate Net Energy Billing credits, a 100% property tax exemption, and a sales tax exemption on equipment.
- You can go solar with no upfront cost through LightReach leasing, where Palmetto owns and maintains the system while you enjoy predictable monthly energy payments.
Portland Electricity Prices
If you live in Portland, Maine, you have probably watched your electricity bill climb. Here is what is driving those costs.
Maine electricity rates have risen sharply in recent years. Residential prices jumped from 17.0 cents per kWh in 2021 to 27.4 cents in 2023, before settling at 23.9 cents in 2024, well above the national average of 16.5 cents.
Solar offers one way to take more control. By generating your own power, home solar panels can reduce how much electricity you buy from the grid, which helps limit your exposure to rising utility rates.
Over time, that steadier cost can add up. While utility rates may keep shifting, a solar system produces power for decades, giving many Portland homeowners a more predictable picture of their long-term energy costs.
Price of Energy: Maine vs National Average
0¢
10¢
20¢
30¢
40¢
13.7¢
17.0¢
15.0¢
22.4¢
16.0¢
27.4¢
16.5¢
23.9¢
2021
2022
2023
2024
US Average
Maine
Portland Area Utility Providers
If you live in Portland, Maine, your electricity comes from Central Maine Power (CMP). As of 2023, CMP charged about 27.5¢ per kWh. That is well above the 2023 national average of 16.0¢ per kWh.
Why so high? Maine’s 2023 state average of 27.40¢ per kWh reflects the region’s cold winters, heavy heating demand, and the cost of delivering power across a large, rural service area with older grid infrastructure.
Because Portland’s rates run higher than most of the country, going solar can help you offset those costs. By generating your own power, you rely less on CMP and gain more predictability over what you pay each month.
Portland Utilities Electricity Rates
CMP
27.50¢
+72%
ME Average
27.40¢
+71%
US Average
16.0¢
—
Maine Solar Incentives
Several solar incentives in Maine can help Portland homeowners lower the cost of going solar and reduce their monthly energy bills.
Maine’s Net Energy Billing program gives you full retail credits for extra power your panels send to the grid. Statewide property and sales tax exemptions also trim both your upfront and ongoing costs.
While the federal tax credit has ended, these state and local programs remain. Leasing through LightReach simplifies things, since Palmetto handles the commercial credit and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Net Energy Billing (NEB) | Net Metering | Maine’s Net Energy Billing program provides residential solar owners with full retail-rate bill credits for excess electricity sent to the grid, with no cap on residential participation. | Learn More |
| Renewable Energy Investment Exemption (Property Tax Exemption) | Property Tax Exemption | Maine exempts 100% of the assessed value of qualifying solar and battery storage equipment from local property taxes statewide, saving homeowners an estimated $381 or more per year on a typical 9 kW system. | Learn More |
| Solar Equipment Sales Tax Exemption | Sales Tax Exemption | Maine provides a sales tax exemption on solar energy equipment purchases, saving homeowners approximately $1,100 in upfront costs on a typical $20,000 residential solar installation. | Learn More |
| Efficiency Maine Small Battery Incentive Program | Rebate | Efficiency Maine compensates residential and small commercial battery storage owners for participating in demand response events, paying approximately $180–$200 per kilowatt (kW) of average discharge annually. | Learn More |
| Efficiency Maine Energy Storage System (ESS) Program | Rebate | Efficiency Maine offers performance-based incentives of $4,000–$600,000 per year for up to 5 years to non-residential customers (commercial, nonprofit, institutional, and government) that install and operate qualifying battery storage systems in Maine. | Learn More |
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Maine incentives.
Portland Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Portland’s northern latitude means shorter winter days and longer summer sunlight, while its cool, clear climate actually helps panels work efficiently. With the right system, Portland homes can produce plenty of solar power year-round.
Solar Production in Portland by Month
System Size: 5 kW 7 kW 10 kW
Daylight Hours
Energy Production (kWh/day)
What Can Your Solar System Power?
Summer Production (July)
45.8 kWh/day
In July, your 10 kW system could power:
- 3.1 average homes (15 kWh/day per home)
- or Run central AC for 15 hours AND power all other appliances
- or Fully charge 4.6 Tesla Model 3 electric vehicles
Winter Production (December)
19.8 kWh/day
In December, your 10 kW system could power:
- 1.3 average homes (15 kWh/day per home)
- or Keep your home heating system running for 9 hours
- or Fully charge 2.0 Tesla Model 3 electric vehicles
Annual Production
13,193 kWh/year
Over a year, your 10 kW system could:
- Offset 9 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 158 trees
Solar Panel Systems in Portland
We mapped solar installations across the country, right down to the neighborhood level. Explore the map to see how many Portland, Maine homes have switched to solar. Click any hexagon to discover installations in that area, and see how your community is embracing clean energy.
Leasing Solar Panels
In Portland, both Central Maine Power and Versant Power customers can go solar through a Power Purchase Agreement (PPA) with Palmetto’s LightReach program. Instead of a fixed monthly lease, you simply pay a set price per kilowatt-hour for the clean energy your panels produce.
Because your panels generate more in summer, your PPA bills rise then and dip in winter. Over a full year, the savings work out much like a flat lease payment. Either way, you avoid a large upfront investment.
Unlike paying cash, a PPA means Palmetto owns the system and handles all maintenance and repairs. You get predictable energy costs without the hassle. To compare your buy or lease options, explore what fits your home.
Frequently Asked Questions
Does Portland, ME have net metering?
Yes. Portland, ME homeowners have access to net metering through Maine’s Net Energy Billing (NEB) program. If you’re a Central Maine Power (CMP) customer, you earn full retail-rate credits for the excess electricity your panels send to the grid.
Do solar panels increase your home value in Portland, ME?
Yes, solar panels can increase your home’s value in Portland, but this applies to purchased or owned systems, not leased or PPA systems. A Zillow study found that homes with owned solar panels sold for approximately 4.1% more than comparable homes without them.
How much does it cost to go solar in Portland, ME?
With Palmetto’s LightReach lease, Portland homeowners can go solar for a low fixed monthly payment starting around $128/month—with no upfront cost. Palmetto owns and maintains the system, so you get predictable energy costs without a large investment.
Is solar worth it financially?
For many Portland homeowners, solar makes financial sense because Maine’s electricity rates average about 23.9¢ per kWh, well above the national average. Generating your own power helps offset those rising utility costs over the system’s 25-plus year lifespan.