If you're a Maine homeowner, business owner, or landowner considering solar energy this year, the landscape looks fundamentally different than it did just 12 months ago. The federal tax credit that once sweetened the deal is gone for residential owners, the state's landmark community solar program has ended, and towns like Harrington are enacting bans on large-scale arrays. Yet solar remains viable—just different.
Here's what you need to know about going solar in Maine in 2026.
The Policy Earthquake: What Changed
Maine entered 2026 with a transformed regulatory environment. The most significant shift came when LD 1777 took full effect, effectively ending the state's net energy billing program for community solar projects—the policy that had fueled a remarkable solar boom .
Between 2019 and 2025, Maine's community solar market surged from just 88 megawatts to 936 megawatts, bringing over $1 billion in private investment and delivering 15% monthly bill savings to subscribers . The program was, by many measures, wildly successful.
Too successful, according to state officials.
"The community solar program needs reform precisely because it has been so successful," Maine Public Advocate Heather Sanborn said when defending the changes. "We set out to build 750 MW of solar, and instead we've built more than 1600 MW" .
Under the new rules, new community solar projects no longer qualify for 1:1 retail-rate net metering. Instead, they receive a tariff-based rate set by the Public Utilities Commission, typically below retail . Existing projects are grandfathered at the previous rate—for now.
A federal judge in February 2026 denied a motion by solar companies to block the new fees imposed on existing projects, dealing a blow to industry efforts to restore the incentives they'd relied upon when developing their projects .
The Federal Tax Credit: What's Left
Perhaps the biggest shock for homeowners considering solar in 2026: the 30% federal residential solar tax credit (Section 25D) expired December 31, 2025.
"Many websites still advertise this credit," warns Marcus R., a NABCEP-certified solar engineer writing in a February 2026 guide. "Homeowners who buy solar with cash or a loan in 2026 receive $0 in federal tax credits" .
The expiration came via the One Big Beautiful Bill Act, signed into law on July 4, 2025. For Maine homeowners planning to purchase a system outright or finance it with a loan, that tax credit—which had been a cornerstone of residential solar economics—is simply gone.
There is, however, a workaround.
The commercial investment tax credit (Section 48) remains available through July 2026. Third-party ownership models—power purchase agreements (PPAs) and leases—allow a financing company to claim that 30% credit and pass the savings to homeowners in the form of lower monthly payments . Under these arrangements, homeowners get zero-down installations with fixed payments typically 25% below their current utility bill, and can take ownership after five to eight years.
The Real Cost of Solar in Maine (2026)
Without the federal tax credit, the math on solar has changed. A typical 9-kilowatt system in Maine now costs approximately $27,450 before any incentives .
For comparison, EnergySage data shows the average homeowner needs an 11.45 kW system to cover their electric bill, costing about $33,667 before incentives, with prices ranging from $28,617 to $38,717.
Payback periods have lengthened considerably:
- Central Maine Power territory: 15–17 years payback period (rates average $0.27/kWh)
- Versant Power territory: 12–14 years payback period (rates average $0.32/kWh)
The difference between utilities matters. Versant's higher rates mean each kilowatt-hour of solar production is worth $0.05 more than in CMP territory, making the investment more attractive for northern and eastern Maine residents .
Despite the longer payback, solar still produces significant long-term savings. A typical system is expected to save over $30,000 across 25 years .
What Incentives Remain
While the federal residential credit is gone, several key incentives remain intact:
Net Energy Billing (NEB) for Rooftop Solar
Crucially, LD 1777 did **not** change net metering for residential rooftop solar. Homeowners still receive 1:1 retail-rate bill credits for all electricity exported to the grid. Credits roll over monthly and are trued up annually . This remains one of the strongest net metering policies in the country .
Property Tax Exemption
Maine law (36 M.R.S. §655) provides a 100% property tax exemption for solar energy equipment statewide . For a typical 9 kW system, this saves approximately $381 annually in property taxes that would otherwise be assessed on the added home value.
Sales Tax Status Uncertain
Maine's 5.5% sales tax exemption for solar equipment remains unverified from official statute. Some installers report the exemption applies; others caution it may not. Homeowners should verify with their installer whether sales tax will be added to their system cost .
No State Solar Rebate
Efficiency Maine Trust, the state's efficiency program, focuses its incentive dollars on heat pumps, insulation, and appliances—not solar panels. There is no state-level rebate for solar installations .
Financing Options: The New Landscape
With the residential tax credit expired, the financing landscape has shifted significantly:
Hybrid financing models like Propel Solar offer another path: $0 down, fixed payments about 25% below current utility bills, and full ownership transferred to the homeowner by years five to eight .
Agricultural Land: New Permitting Rules
For landowners considering larger-scale solar development, Maine has implemented strict new rules for projects on high-value agricultural land (HVAL). These regulations, effective April 20, 2025, apply to any ground-mounted solar development that occupies five or more acres and includes at least one contiguous acre of HVAL.
Key requirements:
- Permit by Rule applies to projects 5–20 acres, with a $200 application fee
- Individual Permits are required for projects 20+ acres, with a $300 application fee and potential compensation fees or conservation easement requirements
- Projects on HVAL may be subject to compensation fees that fund farmland conservation elsewhere
- A field-based soil survey by a licensed soil scientist is required to confirm HVAL status—online mapping tools are not sufficient
The DACF provides a 30-day automatic approval window for Permit by Rule applications if the agency doesn't communicate with the applicant within that timeframe .
Local Resistance: The Harrington Ordinance
On March 10, 2026, voters in Harrington, Maine, enacted a solar energy ordinance that signals growing local pushback against large-scale development.
The ordinance allows personal and commercial solar installations for on-site use but prohibits utility-scale solar farms and any for-profit power generation. Key provisions include:
- Net metering permitted for energy offset only—no profit may be derived from the system
- Ground-mounted systems limited to 2,500 square feet
- Height restrictions of 25 feet with minimum setbacks of 25 feet from property lines (increasing to 45–70 feet from roads)
- Screening requirements from public roads and neighboring properties
- Mandatory removal of nonoperational systems within one year
The vote drew overwhelming support, with no objections from the 35-person audience. The ordinance's stated intent: to preserve Harrington's rural character and "prevent industrial encroachment incompatible with community values" .
This local action reflects a broader tension in Maine between renewable energy development and preservation of rural character—one that solar developers will increasingly need to navigate.
Practical Guidance for 2026
For Homeowners
1. Understand your utility territory. CMP and Versant customers face different economics. Versant's higher rates mean faster payback—but both utilities offer strong net metering.
2. Run the numbers without the ITC. A 15–17 year payback in CMP territory may still make sense if you plan to stay in your home long-term. If not, consider a PPA or lease structure.
3. Explore third-party ownership. PPAs and leases offer zero-down entry with immediate bill savings, though you won't own the system for 5–8 years.
4. Verify sales tax status. Ask your installer upfront whether the 5.5% sales tax applies to your system.
For Landowners
1. Check HVAL status early. If you're considering a ground-mounted system of five acres or more, get a field-based soil survey before investing time in project development .
2. Engage with local planning boards. Harrington's ordinance demonstrates that local approval is not guaranteed. Early engagement with town officials and neighbors can head off opposition.
3. Consider dual-use options. DACF guidance encourages dual-use solar projects that combine energy generation with agricultural activity, which may face fewer hurdles .
For Community Solar Subscribers
1. New community solar projects will offer tariff-based rates rather than 1:1 retail credits. Compare offers carefully.
2. Existing subscriptions remain grandfathered under the previous rules—for now. Monitor policy developments that could affect these protections.
Looking Ahead
The Maine Public Utilities Commission and Governor's Energy Office are tasked with developing a new renewable energy incentive plan by September 2026 to replace the program that ended in January . What that plan looks like will shape the state's solar landscape for years to come.
Meanwhile, the legal fight over retroactive fees continues. The Coalition for Community Solar Access, disappointed by the February 2026 court ruling, maintains that "this retroactive policy change chills economic investment, undermines market certainty, and punishes American companies that followed the law" .
For now, Maine's solar market is in transition—less hospitable to developers and community solar projects than during the boom years, but still viable for homeowners, especially those in Versant territory willing to consider third-party ownership models.
The path forward will require careful navigation of new rules, realistic expectations about payback periods, and early engagement with local permitting processes. But for those willing to do the homework, solar still pencils out in the Pine Tree State.
This article reflects information available as of March 30, 2026. Solar incentives and regulations are subject to change; readers should verify current information with installers and the Maine Public Utilities Commission before making investment decisions.*
