With nearly 5 peak sunlight hours per day, a PV system in Maine can substantially cut your electricity bills. You can make your solar switch easier with the help of solar incentives in Maine. In this article, we’ll walk you through the main ones.
Key takeaways
- With nearly 5 peak sunlight hours per day, Maine state is perfect to cut your electricity bills and save on electricity. Multiple solar incentives widely available to the public can make this deal even more profitable. Read for more information.
- Maine residents can claim a 30% federal tax credit on the total cost of their clean energy solar system installation, including the cost of the system and the work of the installer.
- Investor-owned utilities and electric cooperatives offer net metering for systems up to 5MW. Unused electricity is stored as credits that roll over monthly for a year. Unused credits at the end of the annual cycle are granted to the utility with no compensation. Credit value is determined by the utility. Address your utility office for more details. Instead of net metering, some companies offer net energy billing.
- The added value of a solar PV system is exempt from property taxes. Property value increases by approximately 4%.
- Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be a written and legal contract.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Sell excess electricity with net metering program
Solar laws in Maine allow customers of investor-owned utilities and electric cooperatives to join net metering programs for solar systems up to 5MW. This gives residential solar owners an opportunity to put the excess electricity into the utility grid instead of storing it in batteries.
Unused electricity will be stored as credits with your utility. They will roll over monthly for a year and zero out future bills. At the end of the annual cycle any unused credits will be granted to your utility with no compensation. The value of a credit is determined by your location and power utility.
Raise your property value but not your taxes
Maine residents invested in a solar energy system will not have to pay any additional property taxes on the added value they bring to their homes due to the property tax exemption for renewable energy systems. Maine Revised Statutes ensure any new PV system installed will not be part of your property tax. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report.
4%
this is how much solar panels increase the value of your house
Protect your solar panels from shade with Solar Easements
A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner. Any such agreement must be created in written form and must meet the general requirements for legal contracts.
What are solar incentives, and why do they exist?
Imagine your town or city wants everyone to use sunlight to make electricity. It's like switching from old light bulbs to new, energy-saving ones. The problem is, putting solar panels on your roof isn't cheap. So, the government came up with a plan to help. This plan is called "solar incentives." Think of it as a special set of deals designed to make solar energy affordable for everyone.
One of the main deals is called a "tax credit." When you buy and install solar panels, you can tell the government when you do your taxes. They'll let you take a certain amount of the money you spent on the panels and subtract it from the money you owe them in taxes. It's like getting a discount on your tax bill. Sometimes, if the discount is bigger than what you owe, they might even send you a check for the extra money.
Another way they help is with a "rebate." This is like getting a cash refund. After you've paid for your solar panels and had them installed, you can apply for a rebate. The government or a special program will then send you money back. It's like getting a cash-back reward for making a good choice. Sometimes, they'll even take the rebate off the price of the solar system when you buy it, making it cheaper right away.
Then there's something called a "feed-in tariff." This is a bit different. When your solar panels make more electricity than your house or business needs, you can send that extra electricity back to the power company. They'll actually pay you for it. It's like selling your extra power back to them, and they'll give you money in return. This helps you earn money while also using clean energy, making it easier to pay for your solar system over time.
Why do governments do all this? Well, they know that using solar energy is good for everyone. It helps make the air cleaner because solar power doesn't produce pollution like burning coal or gas does. Cleaner air is better for our health and the environment. It also helps create jobs for people who work in the solar industry, from making the panels to installing them. More jobs mean a stronger economy. And, by using more solar energy, we don't have to rely as much on buying oil or gas from other countries. This makes our energy supply more secure and stable.
For you, the person putting solar panels on your home or business, these incentives mean you can save a lot of money. You get help paying for the system itself, which makes it more affordable. You also save money on your electricity bills every month because you're using less energy from the power company. And, with feed-in tariffs, you might even make some extra money by selling your extra power. Basically, solar incentives make it easier and cheaper to switch to solar. They help you save money while also doing something good for the planet. It's a win-win situation for everyone.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in Maine
SHOP SOLAR PANELSYears of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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