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Maine is making strides in renewable energy, and solar power is becoming an increasingly attractive option for residents and businesses across the state. As Maine works towards its ambitious climate goals, understanding the key solar incentives available can help you make informed decisions about investing in solar technology. In this guide, we’ll explore the primary solar incentives and resources that can support your journey toward harnessing the power of the sun in Maine.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
How to Make the Most of the Solar Tax Credit in 2024
Maine Solar Property Tax Exemption
Maine provides a property tax exemption for solar and wind energy systems that generate heat or electricity. This exemption applies as long as the energy produced is used on-site where the equipment is installed, or if it’s transmitted through the facilities of a transmission and distribution utility, and results in a bill credit for the energy generated. This means that homeowners and businesses can benefit from reduced property taxes while enjoying the advantages of renewable energy.
Net Energy Billing
Maine offers two compensation options for customer generators and subscribers to community solar projects. Any customer may participate in the Net Energy Billing kWh Credit Program, but only non-residential customers can participate in the Net Energy Billing Tariff Rate Program. The generation facility can be located on the customer’s property or another property within the same utility service territory.
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Solar for All
- Maine’s program, MESA, will utilize this funding to implement four financial assistance program channels, aiming to comprehensively tackle barriers encountered by low-income and disadvantaged households. These channels include single-family and multifamily on-site solar programs, along with targeted assistance for cooperatively-owned community solar. Energy storage is integrated across all four channels to enhance resilience and optimize value. MESA also suggests a comprehensive array of technical assistance, including expanded opportunities for workforce development, support for siting and permitting, and additional assistance to address barriers like interconnection challenges.
- The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers.
Solar for All
Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
