Maine State Solar Power Rebates, Tax Credits, and Incentives

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Known for a bit of everything from beaches to quaint seaside towns and windswept rocky coastlines to fantastic mountain hiking trails and thousands of lakes, Maine is an outdoor wonder. All that wonder is full of energy too. The wind, the tides, and most importantly, the sun are all at work keeping Maine fueled. The real question is how has the legislature done in promoting all the energy that’s just lying around for the taking? Keep on reading to find out.

STATE LEGISLATION
Maine has started to consider some important bills on solar energy in the last couple of years. Most significantly, the legislature voted to renew the Solar Rebate Program, at least through 2010. Solar power has been considered in a number of other bills which unfortunately never got out of the legislature, but on the plus side, at least lawmakers are starting to think in the right direction.

The steps taken by Maine’s legislative body are being pushed along by Governor John Baldacci too. Just yesterday (11/15/07) he gave a speech at the opening of the E2-Tech Conference in Falmouth where he said, “We need to get off the petroleum habit, and Maine is keyed up better than most states when it comes to finding alternative sources of energy.” Ever since being elected, Baldacci has been a big supporter of solar and other types of clean power.

NET-METERING

Maine set up net-metering rules in 1987 and amended them in 2000 to keep up with the times. Under these rules, all utilities in Maine must offer net-metering to customers who generate 100kW or less. Customers get a credit on their next monthly bill for any net excess power generated during a 12 month billing year. At the end of the year, any excess power generated is granted to the utility without compensation. Wouldn’t it be great if the utilities would actually purchase that net excess generation?

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Passed by the Maine legislature in 2005, the State Rebate Program set up a fund to reimburse residents and businesses up to $7,000 for installing a solar electricity system and up to $1,250 for a solar thermal system. In either case, the state rebate will cover 25% of the cost of the equipment and installation up to the cap. The biggest drawback to this program is its success though. The program budget was only $500,000 and the part of that that was set aside for solar electricity systems has already been exhausted (there’s still money for solar heating systems though!). In 2007 some more money was allocated, though and grants will resume between 2008 and 2010. You can qualify for this rebate if the system you install has a capacity of up to 100kW.

Check out the rebates and incentives for renewable energy in Maine:

State Grant Program

* Voluntary Renewable Resources Grant

State Rebate Program

* Solar Rebate Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

Installing a 3kW solar electricity system in Portland, Maine would cost around $63,000. On the surface that sounds a bit steep, but keep in mind that with a state rebate and a federal tax credit, that cost will drop to about $54,000. Still not convinced? Since Maine has a solar rating of Good, your solar system would probably pay for itself in 2-13 years, assuming an average monthly usage of 1,300kWh at rate of $0.143/kWh through the Central Maine Power Co. The savings will only mount too as utility rates are estimated to rise to $0.21/kWh in 25 years. On top of those savings, you’d be keeping 151 tons of CO2 out of the atmosphere. But wait, there’s more; check out these other details on your system:

  • 700 square feet of roof area required
  • Estimated property value increase of $19,620 to $44,291!
  • $41,164 to $92,926 estimated utility savings over 25 years!
  • Greenhouse gas savings equal to taking 26 cars off the road or planting 442 trees.

CONSENSUS

While Maine has been taking the relaxed approach to legislation on solar power, it has made some important first steps that place it ahead of many other states. Governor Baldacci is really pushing hard for clean power, but lawmakers can’t let him do all the work. Legislators should not let the solar rebate run out, and they need to step of the action to further promote the renewable energy market in the state. A good start, but don’t stop now, you’re just at the beginning.

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5 comments.

henry fossett
Comment on November 27th, 2007.

Ive just started researching this alternate power source, but either i’m reading things wrong, or maybe theres just confusing terms here: First, my house used about 700kwh last month, so what good is it for me to max out the credit allowance and get a system that peaks 100kw? also, I was just researching a system that will give me about 1000kw a month, but needs 312sqft of roof, why does this 100kw system need 700sqft? thats a pretty big roof (and likely one side, too)

While this tax credit is a nice gesture, its just that, a gesture. How is it that the power company gets to keep my overage free of charge? I’m sure they will be charging the next person down the line recieving it the going rate. With only 100kw max (for the credit), I wont likely be seeing any overage anyway, like I stated earlier, my house runs about 700kwh… Whats a 100kw equal? a fridge and a nightlight? I truly hope it is a misunderstanding of terminology here, as it seems like this credit is not designed to get Mainers off the grid, but mainly to satisfy a special interest group that dabbles in solar power. (I realize the author(s) of this page merely report what is, I am simply trying to express what a lot of other people I have spoken to about this have opined)

I also would like to point to the wide range in estimating the payoff timeframe. 2-13 years? why such a large gap? I’m sure there are a lot of reasons for this; A list of pros and cons to solar power in Maine would be nice, with a more detailed reason for the huge estimate swings; some insights on living with solar power in a State with such seasonal and daylight availability as we have here. How about some input from some of our neighbors who have taken the plunge, so to speak.

I am still investigating this as an feasible alternate energy source, but until the average person gets some serious cost relief from the massive initial installation layout and some long term incentive (like getting a check from CMP for all overages), It is simply out of reach for most of us in the short term, and the long term payoff for running and maintaining a system is too little, too late.

Thank you for your time, Henry Fossett

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Comment on March 25th, 2009.

The Maine Renewable Energy Sources Act, a feed-in tariff bill has been submitted this session 3/24/09.

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