Due to recent legislation, the federal tax credit for rooftop solar is set to expire on December 31, 2025.
SOLAR ENERGY
Solar energy is a form of renewable energy that is harvested from the sun's rays using solar panels. Solar energy systems, also referred to as photovoltaic (PV) systems, exist at varying scales, from large solar farms to residential systems that serve an individual home. Residential or community solar can be a great way to save money, without emitting any carbon. This page explores ways that you can access solar energy as a homeowner and the potential savings available. The video below explains solar energy savings in greater detail.
Producing energy on your rooftop or being a part of community solar helps protect against the volatility in the cost of fossil fuels.Â
Installing solar panels with a battery storage system prepares your home for power outages or storms.Â
Installing solar panels is viewed as a large home upgrade and can lead to increased home value.
Both installing solar panels and participating in a solar subscription have net savings over time.
Need a few more reasons? Check out this article from ReVision Energy!
TYPES OF SOLAR
Residential Solar
​Residential solar refers to a system that is owned or used by one household. Many residential systems use panels that are installed on the home's roof. This is called rooftop solar. This type of system can be purchased outright or leased through a solar provider.
Community Solar
There are two types of community solar; Co-op​ and subscription.
In a Co-op​​ the community purchases and installs solar panels locally, and benefits are distributed to those who opt-in. ​
Solar subscriptions are purchased directly from the solar farm instead of the utility company. The electricity produced by the solar panels is then credited to your electric bill, reducing its cost. This model is useful for starting the process of transitioning to solar without making a larger commitment. This option is also accessible to renters.
POTENTIAL SAVINGS
Homeowners typically recoup the cost of their solar installations in about 5-10 years. The length of time depends on factors such as: location, size of array, and cost of electricity.
Solar panels also make reselling the home a bit easier as they increase the home’s resale value by $15,000, and homes with solar panels sell faster than those without.
Solar panels are a great way to lower your energy costs. Just how much you can save is dependent on your available space, where you live, and the cost of electricity. Revision Energy's solar savings calculator for Maine, New Hampshire, and Massachusetts can provide a good picture of what your savings could be.
FINANCIAL INCENTIVES
Rebates
​​Currently, there are no state-level rebates for rooftop solar installation. ​​
Tax Incentives
​​Through the Residential Clean Energy Credit, homeowners who install solar panels can receive a nonrefundable tax credit of 30% of the project cost. There is no dollar or lifetime limit on this tax credit. Therefore, if the solar installation costs $15,000, the credit would equal $5,000 and can be claimed the following year if additional panels are installed. It is important to note that the credit will be reduced to 26% in 2033 and 22% in 2034.
Net Metering
Net metering or net billing is an offset that a customer may get on their electricity bill for selling excess electricity from a solar system onto the grid. This applies to both rooftop/single-home and community-based solar systems. Net metering is also available for other types of small-scale renewable energy generation. This can be a good way to decrease energy bills and contribute to the greening of the grid! For more info on net metering, visit the Maine Public Utilities Commission's page on Net billing.