So you live in Maine and are interested in going solar? Smart thinking! Many homeowners overlook solar energy due to Maine‘s chilly climate and cloudy days. But the reality is Maine has growing incentives that make panels financially smart if you crunch the numbers…
That‘s what this guide is all about – maximizing savings with solar for Maine homes. I‘ll overview the available incentives, analyze example system paybacks, and equip you to make the best decision for your property. Get ready to capitalize!
Solar Savings in Maine at a Glance
Before we dive into the details, here‘s a high-level snapshot of Maine‘s solar scene:
- With the right setup, solar systems in Maine can save homeowners $9,000 to $15,500 over 20 years through utility bill reductions and incentive payments
- The table below summarizes the current savings opportunities for residential solar owners in the Pine Tree State:
| Solar Incentive | Credit/Value |
|---|---|
| Federal Tax Credit | 30% of system cost |
| Net Metering | Bill credits for excess power at retail electricity rate (with 40% cap starting 2023) |
| Renewable Portfolio Standard | Supports growth of community solar; 80% Class I renewables by 2030 |
| Property Tax Exemption | No increased property tax post-install |
- While upfront costs for solar equipment run high in Maine (around $3.15/Watt), the long-term savings outweigh the initial purchase when financing options are utilized
- Cloudy winter weather can impact solar output by 40% or more compared to summer months…but Maine still averages 4 peak sun hours per day thanks to long summer days
- Community solar programs provide solar access without on-site panels – perfect for shaded/small properties or renters!
Let‘s explore the savings opportunities further so you can strategize solar for your home. I‘ll break things down across federal, state, and utility company incentives…
Federal Solar Support – Leveraging Tax Credits
The federal solar Investment Tax Credit (ITC) remains the most impactful incentive to leverage. Offering a 30% tax credit on installed residential systems, it puts cash back in your pocket.
For a typical 6,000 Watt system costing around $18,900 before incentives, the ITC would cut $5,670 off your final tax bill. Not too shabby!
Now until 2035 when the credit steps down, the ITC applies to any new solar equipment added to your primary residence. Just note that:
- Leased solar systems are unfortunately ineligible
- Credits are based on what you pay after other incentives like state rebates
- There are no caps, but credits cannot exceed your annual tax burden
Be sure complete Form 5695 with your tax return to receive the solar credits. The DSIRE federal database details all program requirements.
The ITC accelerates payback, as this table illustrates:
| System Specs | 6 kW Array |
|---|---|
| Pre-Incentive Cost | $18,900 |
| Federal Tax Credit (30%) | $5,670 |
| Net Cost | $13,230 |
At $13,230 after incentives, our example 6 kW system would take around 12 years to pay itself off through electricity savings in Maine. That‘s respectable ROI given solar panel warranties running 20-25 years!
Maine State Support – Net Metering & Community Solar
In addition to Uncle Sam‘s tax help, Maine state policies can further solar savings:
Revived Net Metering
In 2019, Maine reinstated full net metering credits at the retail electric rate after past rollbacks. This lets solar owners earn bill credits for surplus power exported to the grid.
However, in early 2023 a 40% cap will take effect on the system size eligible for net metering. So larger installations may not fully benefit.
Using our example 6 kW array with typical solar production ratios in Maine, we would expect 7,600 kWh of first-year energy output.
Compare that to the average Maine home‘s usage of 6,500 kWh per year, and our system should deliver sizable surplus generation. Under restored net metering, the excess kWh credits would nicely offset our future bills.
Scaling up your array or pairing it with battery storage limits export and utilization potential. But with small-to-medium systems, net metering in Maine totals up to 4-figures of lifetime utility savings.
Community Solar Growth
Homes without solar-friendly roofs (or rentals/apartments) can tap into Maine‘s community solar gardens. These are centralized arrays with output credited to participating homes as bill savings.
With Maine requiring 80% renewables by 2030, utility companies are expanding community project capacity accordingly:
- Central Maine Power commits to building 375 MW of shared solar in the state over 3 years
- Development group Nexamp has a 150 MW Maine pipeline under construction
Subscribing residents can save up to 20% off their monthly electricity costs, all while supporting local clean energy without installing panels. It‘s a win-win for access and affordability!
Check available community solar programs through your utility or the Maine Solar Energy Association to enroll.
Crunching the Numbers on Solar
Now for the money question: How quickly would solar panels pay for themselves on my Maine home?
It depends on your property specifics, but here‘s a detailed cost-benefit estimate:
Let‘s say you install a robust 8,000 Watt solar system to maximize coverage of your high $1,800 annual utility bill.
- At around $3.15 per Watt, the pre-incentive hardware and installation cost totals $25,200
- Knocking off the 30% federal tax credit of $7,560 brings the final out-of-pocket down to $17,640
Now for solar system production math:
- Efficient panels in Maine average about 12.9 kWh per year per Watt
- So your 8 kW array would produce ~10,320 kWh annually
- Compare that to your current usage of 18,000 kWh
- 10,320 kWh x $0.235 Maine electric rate = $2,425 yearly solar electricity value
Tally up the annual solar savings over 20 years:
- Electricity Production: 10,320 kWh x $0.235 rate x 20 years = $48,496 utility savings
- Plus Federal Tax Credit received: $7,560
- Total 20 Year Solar Savings = $56,056
Finally, weigh the $56,056 lifetime earnings against the $17,640 net system cost after incentives:
$56,056 ÷ $17,640 = 3.2 year payback period
Bottom line – with sufficient roof space and energy usage, solar systems in Maine can break even quickly thanks to compelling incentives.
And as electricity rates rise 6% annually, your annual savings will grow for 20+ years once your upfront investment is recovered!
Solar Makes Sense for Many Maine Homes
I hope this overview gives you confidence that solar works both functionally and financially even in Maine‘s northern climate.
With the state further expanding renewables and access, plus the enduring federal tax credit through this decade, now is the time to seize control of your utility bills.
Request quotes from local Maine solar installers to map out a custom analysis. And crunch the net metering payback period for your property.
I think you‘ll be surprised at how decisively the incentives tip affordability in solar‘s favor over the long run. Any other questions on maximizing Maine solar savings? Let me know in the comments!
