Maine Solar Incentives, Tax Credits And Rebates Of 2024 – Forbes

One of the best ways for Mainers to save on a solar panel installation is to research all the Maine solar incentives they may qualify for.

Efficiency Maine PACE Home Energy Loan

The Maine Efficiency Trust offers relatively inexpensive Property Assessed Clean Energy (PACE) loans to help homeowners finance a new solar energy system. Systems must be installed by vendors registered through Efficiency Maine, but benefits include:

• System ownership from day one
• No fees
• Interest rates as low as 5.99%

PACE loans are ideal for homeowners who don’t want to make a large, upfront investment or lease a system. PACE financing adds to your monthly property tax bill, but the amount that solar panels save homeowners on utilities should offset this increase. Maine residents can apply for a PACE loan on Efficiency Maine’s website. The agency will walk you through each step of the process if you qualify.

Maine Property Tax Exemption

Upgrading your home with solar panels may increase its value. Increased property value typically comes with higher property taxes, but Maine will waive any such increases that result from installing solar energy equipment. Residents must apply in advance for the state’s approval to qualify for the exemption.

Maine doesn’t offer its own state-level tax credit for solar buyers, but all U.S. solar owners can apply for the federal Solar Investment Tax Credit (ITC).

The ITC is a nationwide program that offers homeowners who install panels before the end of 2032 eligibility for a 30% tax credit for the year of installation. This credit decreases the amount you owe on your annual property tax bill that year and can save you thousands of dollars. For example, 30% of a $15,000 system would equate to a $4,500 decrease in your tax bill.

Those who finance their systems do not qualify for the ITC. The credit is set to decrease to 26% in 2033 and again to 22% in 2034. It is currently not set to renew after 2034.

Note: The ITC is a non-refundable tax credit. Depending on your overall tax liability, you may only receive a portion of this credit. Work with a tax accountant to understand how a solar panel tax credit will impact your finances.

Most Maine solar buyers will stay connected to the power grid as a backup energy source. This connection allows solar owners to sell the extra electricity that their systems produce back to their utility companies as a part of Maine’s Net Energy Billing program.

In exchange, utility companies give solar customers energy credits at their utility’s full retail value. These credits can be used to pay for future electric bills for times when you need to rely on the grid, such as at night or on cloudy winter days.

In addition to the statewide and federal incentives above, you may be eligible for more local solar rebates in Maine that vary by utility company. Research all Maine solar rebates you may be eligible for via the Database of State Incentives for Renewables & Efficiencies.

The average cost of solar panels in Maine is $3.33 per watt or $19,980 for a six-kW system. After applying the federal tax credit of 30%, this total drops to just $13,990 . Factors such as the size and location of your home, your household energy consumption habits, the orientation of your roof, labor, permits and the panel brand you choose can all impact your overall costs.

If you want to keep installation costs down, shop around with some of the best solar companies in Maine to compare quotes. Look for the right balance of cost, reliability and performance to get the most bang for your buck.

There are several benefits of going solar in Maine, ranging from financial to environmental.

Savings

Most solar panels can last up to 30 years, and most solar owners in Maine pay off the cost to install their systems in a little more than eight years. After that, the panels generate electricity at no cost, putting thousands of dollars back in your pocket over time.

Predictability

Traditional electricity rates fluctuate with demand. If you’re relying on solar power, you won’t have to worry about price hikes. Not only that, but a system with solar batteries or a solar generator can keep your home electricity running even during a power outage.

Sustainability

In many cases, electricity is produced by burning fossil fuels. With a solar panel system, you can harness renewable energy to reduce your home’s carbon footprint and improve your impact on the environment.

For many Maine homeowners, it’s worthwhile to go solar. As in many U.S. monthly utility costs in Maine are significant at $99.44 per month for energy. However, the upfront investment for solar equipment can also be steep, so you should weigh the cost of installation against the savings you’ll experience on utility bills.

Mainers can take advantage of several federal, state and local incentives and may even make money by participating in net metering. If you plan to sell your home at any point, solar panels can also increase your property value.

On top of the financial benefits, you’ll be doing the environment a favor by producing and using clean, renewable energy. Carefully research the best solar panels and get quotes from several solar providers local to your Maine home.

Bottom Line

Solar power can be a great option for Maine homeowners. Mainers can access a range of solar incentives and relatively low installation costs. Consider your monthly energy bills and the potential to increase your home’s value and eliminate your reliance on fossil fuels. If you decide solar is the right move for you, research the best solar companies and solar programs near you to find the best rates, services and incentives to help you save.