Maine electricity prices average $0.16/kWh, halfway between the New England average of $0.18/kWh and the national average of $0.14/kWh.
In 2019, almost ⅓ of Maine’s net generation came from hydroelectric dams, roughly ¼ from wind turbines, ¼ from biomass generators, and ⅙ from natural gas. Less than 2% of Maine’s power was produced using petroleum, coal, and solar combined. To meet consumption demands, Maine has to import more than ¼ of its power from Canada. Despite its emphasis on renewables, Maine relies heavily on petroleum for heating and transportation, making it one of the most petroleum-dependent states in the country.
Maine is in the 25th percentile of US states for per capita residential electricity sales volume. Over a tenth of all Maine households use wood for heating, and only 1 in 14 households use electricity for primary heating. Low general power use, low consumption of fossil fuels (even if the per-capita consumption is high), and high rates of forest cover give Maine some of the lowest carbon emissions of any state.
Cost of a Solar Install
A graph of falling prices for a typical 5kW PV install in Maine from 2012-2013. Figures include design costs. Data from Berkeley Lab, courtesy of Efficiency Maine.
The average cost of a 5kW solar system starts around $19,000. (This is equivalent to saving almost 100 trees a year!) Before any incentives, in the first year you’d save about $950, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.
Just How Much Can I Save With Solar in Maine?
This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:
Out-of-Pocket
From our example above, the homeowner purchased a 5kW system to offset their energy bill. Overhead cost was $18,750, with a significant proportion returned in the first year through incentives, rebates, and savings, yielding a Net Present Value of $1,500 over 25 years.
Most solar power systems have a warranty lifetime of 25 years. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely. Even with occasional maintenance or part replacement, that is a massive savings.
Solar Loan
Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.
Starting with that same 5kW system costing $18,750 but with no up-front cost, accounting for incentives, credits, rebates, and annual energy savings of just under $1,000, you could see a revenue surplus of about $5,000 at the end of the first year. Save that money though. Your loan payments will likely exceed your power savings by about $60/month for the 15-year term.
Once the loan is paid off, you can expect to save about $1,200 a year. Over 25 years you could expect to make about $9,000.
