Maine’s Solar Incentive / ‘Feed-in Tariff’
Making money from the extra solar energy you produce
Maine homeowners with solar panels (and other small producers of renewable energy) can be paid for the extra energy they produce. The state created a new program in 2009 called the Community-Based Renewable Energy Production Incentive. Although this isn’t technically called a feed-in-tariff, it’s similar to the programs that countries like Germany and Spain, and states like Vermont, have used to encourage rapid growth of solar power. Under Maine’s program, small solar energy producers can choose either to enter long-term contracts selling extra energy to utilities, or to earn renewable energy credits.
Long-term contracts
Under the first option, homeowners can enter a contract with their utility company for up to 20 years. The utility will pay 10 cents per kilowatt-hour of electricity generated. This is significantly less than other feed-in-tariff programs have paid; for example, Vermont pays 30 cents per kilowatt-hour.
Renewable energy credit multiplier
Small producers of solar power can also choose to use an incentive called the renewable energy credit multiplier. This is something that commercial solar producers might be more likely to do than homeowners, but it’s open to anyone. A renewable energy credit (REC) is a certificate that can be sold as proof that you produced electricity in an environmentally-friendly way. After you register with the regional tracking system, you usually can earn a REC every time you produce one megawatt-hour of solar power. With the ‘multiplier’ incentive, though, you’ll get credit for one and half times the electricity you actually produced.
Other incentives
Either of the options in the Community-Based Renewable Energy Production Incentive can be used along with the federal solar tax credit. You would also still be eligible for other Maine incentives like the Solar and Wind Energy Rebate Program.
