Is Solar Still Worth It in Maine Without the Federal Tax Credit?

Updated March 2026

Disclaimer: Pricing and savings figures are estimates based on current average installation costs and CMP retail electricity rates of 26.37¢ per kWh. Actual system pricing, production, and savings vary based on site conditions, system size, usage patterns, and future utility rates. A site-specific assessment is required for an accurate quote.

Yes — Solar in Maine Still Makes Financial Sense

Even without the federal tax credit, solar remains a strong long-term investment in Maine due to high retail electricity rates and long-term utility inflation. At current Central Maine Power (CMP) rates of 26.37¢ per kWh, a properly sized system can generate substantial annual savings.

What Does a Solar Shed System Produce?

Typical solar shed models produce approximately 12,800 kilowatt-hours (kWh) per year. That’s enough to offset a large portion — if not all — of the annual electricity usage for many Maine homes and small businesses.

What Is That Electricity Worth?

At CMP’s current total retail rate of 26.37¢ per kWh:

12,800×0.2637=3,37512,800 times 0.2637 = 3,37512,800×0.2637=3,375

That equals approximately $3,300–$3,400 in electricity value per year

What Is the Payback Period?

Typical solar shed models start at approximately $35,000 installed.

Using current rates:

35,000÷3,375=10.4 years

What Is Solar Payback?
Solar payback is the number of years it takes for energy savings to equal the initial system cost.

Simple Payback: Just Over 10 Years

After about 10 to 12 years, the system has effectively paid for itself through avoided electricity costs. The remaining 15–20+ years of production represent long-term savings.

What Happens If Electricity Rates Rise?

Electricity rates historically increase over time.

If rates increase at a modest 4% annually:

• Year 1 savings: ~$3,375
• Year 5 savings: ~$3,944
• Year 10 savings: ~$4,795

Factoring in realistic utility inflation: Effective payback drops closer to 8–9 years

25-Year Production Value

Even if rates never increase (unlikely), over 25 years, the system would generate:

3,375×25=84,3843,375

That’s:

• $35,000 investment
• ~$84,000+ electricity value
• More than 2× return

With modest rate increases, lifetime production value can exceed $100,000+ over the life of the system

Why Solar in Maine Still Works

Solar in Maine today is driven by:

• High retail electricity costs
• Net energy billing
• Long-term rate protection
• Cold-weather panel efficiency
• Durable, purpose-built infrastructure

When paired with a purpose-built solar shed, the system also provides:

• Additional storage or functional space
• Ideal tilt for snow management
• Roof independence
• Long-term property value enhancement

Bottom Line

At CMP’s current total rate of 26.37¢ per kWh, a solar shed producing 12,800 kWh annually delivers:

~$3,375 in yearly electricity value
~10 to 12-year simple payback
25+ years of production
5-10% increase in home value 

Even without the federal tax credit, solar remains a financially sound long-term investment for many Maine property owners.

FAQ: Solar in Maine Without the Federal Tax Credit

Is solar still worth it in Maine?

Yes. At CMP’s current rate of 26.37¢ per kWh, a system producing 12,800 kWh annually generates about $3,375 in electricity value per year, resulting in roughly a 10-year simple payback.

How long does a Maine Solar Shed take to pay off?

Approximately 10–11 years at current rates. With typical utility rate increases, effective payback may be closer to 8–9 years.

Does snow significantly reduce solar production?

No. Snow may temporarily reduce output, but annual production remains strong, and cold temperatures improve panel efficiency.

What happens if electricity rates increase?

Higher rates increase annual savings and typically shorten the payback period.

Why choose a solar shed instead of rooftop solar?

A solar shed allows optimal orientation, avoids roof penetrations, simplifies maintenance, and adds usable space.

Written by Maine Solar Sheds. Maine Solar Sheds was founded by Matt and his team, who bring over 30 years of experience in Maine’s solar industry. Over the decades, they’ve built roof-mounted systems, concrete ground-mounted arrays, and steel ground-mounted installations across the state.

Since developing the Maine Solar Shed, Matt and his team have come to see how often a purpose-built solar structure is the best long-term solution — offering optimized solar production, snow management, durability, and additional functional space for Maine property owners.