What is the Solar System Payback in Maine?
Electricity rates have increased significantly in Maine in the last several years. Central Maine Power (CMP) customers now pay an average of $159 monthly, which is about $62.50 more per month than in 2021. Versant Power has also raised rates for residential customers. Rising electricity prices are straining household budgets, but make installing solar panels more cost-effective than ever before.
A rooftop solar system in Maine can virtually eliminate electricity bills for decades. In fact, installing a home solar system is one of the few home improvements that will pay for itself over time due to significant utility bill savings. And when CMP and Versant Power raise their power rates again, the savings from solar panels also increase. Read on to learn about the concept of the solar payback period and how it can help you decide if it’s worthwhile to go solar.
WHAT IS A SOLAR PAYBACK PERIOD?
It is the time it takes for a solar home or business owner to recoup their solar investment. The greater the savings from installing solar panels, the shorter the solar payback period. Most residential SolarLogix solar energy systems in Maine have a payback period of 7 to 9 years.
Central Maine Power and Versant Power offer net metering programs for solar system owners, so they get solar credits on their energy bills. That means you can feed surplus solar energy to the power grid and bank solar credits on your bill. In addition, Mainers typically qualify for the federal solar tax credit.
The payback period only considers ongoing financial factors, mainly the dramatic reduction in power bills. For example, the calculations do not include the increase in home value and environmental benefits.
WHAT FACTORS IMPACT MY SOLAR PAYBACK PERIOD IN MAINE?
Numerous factors influence solar system payback, which varies by your power company, property, home energy use, and other variables.
SOLAR SYSTEM COSTS AFTER INCENTIVES
The cost of a solar panel installation varies among solar contractors. SolarLogix is a leading solar installer in Central and Midcoast Maine, and we offer competitive pricing and high-quality equipment.
The average cost for a 6 kW solar energy system is about $20,000. After applying the 30% federal solar tax credit, the net cost of the solar project is about $14,000.
However, the cost of more complex solar installations is higher. For example, if you have a shaded roof and install your solar modules on a pole mount, it is more costly than installing them on the roof of your house.
QUALITY OF THE SOLAR PANELS
What solar panels, inverters, and photovoltaic equipment you install can impact the solar payback period. The solar output of your solar system will be greater as the system ages if you install premium solar panels.
SolarLogix is an installation company based in Belfast, Maine, that installs premium solar panels that are known for exceptional solar electricity generation over time and are designed to produce renewable energy for 25 to 30 or more years. Our solar panels typically have 25-year warranties that help protect your investment and offer peace of mind.
FUTURE RATE HIKES IN MAINE
Installing a rooftop solar system can eliminate the supply and delivery charges on your electricity bills, which are the majority of most power bills in Maine. So, your electric bills can stay the same when CMP or Versant raises their supply charges. In fact, the higher the electricity rates, the more you’ll save and the faster your system will pay for itself in savings.
Both power companies recently increased their electricity rates significantly after getting approval from the Maine Public Utilities Commission. Unfortunately, energy prices have been especially unstable lately.
“We’re highly dependent on fluctuations over time in natural gas prices,” said PUC Chair Philip Bartlett. “As you can see, with the war in Ukraine and volatile international markets over the last couple of years, we’ve seen pretty significant increases in the electricity supply prices.”
ANNUAL CMP AND VERSANT POWER BILL SAVINGS
Your energy bill savings vary a bit depending on where your home is located. CMP serves 80% of the residential power customers in the state of Maine and currently charges 28 cents per kilowatt-hour of electricity. Its service area includes much of Central and Midcoast Maine, including Fairfield, Augusta, Belfast, Camden, Rockport, and Rockland.
Versant Power – Bangor Hydro District serves numerous communities in central and coastal Maine, including Penobscot, Washington, and Hancock counties. The towns of Bangor, Brewer, Hampden, and Ellsworth are in the Versant service area, and it currently charges 30.2 cents per kilowatt-hour.
THE SOLAR ENERGY POTENTIAL OF YOUR PROPERTY
The ideal property for solar PV panels has no or minimal shading and has a south-facing roof. The SolarLogix team can install solar panels facing east or west when needed.
If your house gets some early morning or late afternoon shading, it won’t greatly impact your solar energy output. However, if your roof is heavily shaded in the middle of the day, this will significantly reduce the amount of solar electricity your panels can produce.
Contact SolarLogix if you want to install a solar array on your home. We can conduct an in-person solar site survey of your property with a shading analysis and estimate your annual energy production from a solar power system. We customize these estimates and use historical weather data from your area to produce highly accurate solar energy generation estimates.
Our climate in Maine also impacts how much solar power your roof can generate. Most communities in Central and Midcoast Maine, including Ellsworth, Belfast, Bangor, and Camden, have about 200 sunny days a year, which is about the national average. Most solar pv systems in Maine generate more power during the summer than in the winter because the days are longer. With net metering programs with CMP and Versant, you can bank your solar credits to use during the winter months.
HOW DO I CALCULATE THE PAYBACK PERIOD OF A SOLAR SYSTEM IN MAINE?
There is a formula that solar industry professionals use for calculating the payback period of a solar panel system.
Payback period in years = (Total solar electrical system cost minus solar incentives) / annual cost savings
For example, if your solar system costs $14,000 after incentives, and you save $1,940 a year on your electric bills, the system pays for itself in the savings in 7.2 years.
$14,000/$1,940 = 7.2 years
If you get a solar system proposal from SolarLogix, we can estimate your utility bill savings and solar payback period. To get a solar bid from us, click the button below to get started.
INSTALLING SOLAR PANELS IN MAINE IS A WISE INVESTMENT FOR MOST HOMEOWNERS
Many Maine households pay about $2,000 or more in electricity bills annually. Unfortunately, recent power rate hikes have made electricity unaffordable for many families. Installing a solar panel system is one of the best ways to virtually eliminate your power bills for decades.
SolarLogix is a clean energy solutions contractor that can help households save thousands on energy bills with solar systems, energy-efficient heat pumps, hybrid water heaters, and electric vehicle chargers. Combining heat pumps and solar panels can virtually eliminate both electricity bills and fuel expenses. Our team can customize solutions that take advantage of federal or state incentives and protect the environment.