Maine
Financial Incentives
Tax Benefits: Maine offers a sales and use tax refund for qualified wind energy generation
projects of 10 MW or less.1 Certified producers of ethanol, biodiesel, hydrogen, or methanol
derived from biomass are eligible for an income tax credit of $0.05 per gallon for the commercial
production of biofuels for use in motor vehicles or otherwise used as a substitute for liquid
fuels.2
Loan Programs: Low-interest loans of up to $35,000 are available to small businesses through
Maine’s Small Business Low-Interest Loan Program for certain energy efficiency measures.3
Grants: Maine’s Voluntary Renewable Resources Grants provide up to $50,000 of funding to
Maine-based nonprofits for small-scale demonstration projects that educate the public on the
value of renewable energy. Public utility customers have the option of supporting the fund by
checking off a contribution of $1, $5, $10, or another amount each month on their electric bill.4
The Efficiency Maine Business Program provides cash incentives and free, independent
technical advice to help grid-tied nonresidential electric customers save energy and money. Each
applicant is eligible for incentives up to $300,000 per calendar year. The incentive may be up to
75 percent of the incremental cost of high efficiency equipment over standard equipment.5
Rebates: Maine offers rebates of up to $1,500 to homeowners that receive pre-approval for
energy efficiency upgrades.6 Maine separately offers rebates for certain Energy Star appliances
to Maine residents who are replacing older, less efficient appliances. Rebates of up to $500 are
available for heating equipment and air conditioners.7 Rebates of between $1.00 and $6.00 are
available for energy-efficient lighting products.8 Rebates are also available for PV, solar thermal
and wind systems. PV systems are eligible to receive up to $2,000; solar thermal systems are
eligible to receive the lesser of 25 percent of the project cost or $1,000 (or $1,500 if the system is
installed on a new Energy Star or “Maine Home Performance” home); residential wind systems
are eligible for up to $2,000; and commercial wind systems are eligible for up to $4,000.9
Other Financial Incentives: Maine offers incentives to small, community-based renewable
energy generating facilities, including long-term contracts with the state’s IOUs and REC
multipliers.10
Rules and Regulations
Renewable Portfolio Standard: Maine’s Renewable Resource Portfolio Requirement mandates
that the state’s IOUs and retail suppliers meet 40 percent of the state’s energy needs from
renewable resources and energy efficiency measures by 2017. Thirty percent of that total may
come from Class II resources, which include electricity generated by facilities no greater than
100 MW in capacity that use fuel cells, tidal power, solar arrays and installations, wind power,
geothermal power, hydropower, biomass power or generators fueled by municipal solid waste in
conjunction with recycling or by CHP facilities that qualify as “small power production
facilities.” The remaining 10 percent must be met through Class I resources, which include
renewable generation facilities which commence operation after September 1, 2005. Eligible
Class I resources include all resources in Class II except for CHP systems, certain municipal
solid waste facilities and certain hydro facilities. Wind systems larger than 100 MW are also
eligible Class I resources. Three percent of RPS-obligated entities’ power must come from Class
II resources in 2010, increasing in 1 percent increments up until 2017.11 In addition to the
Renewable Resources Portfolio Requirement, Maine has set three goals for wind-energy
development in Maine: (1) cumulative capacity of 2,000 MW by 2015; (2) 3,000 MW by 2020,
including 300 MW from facilities located in coastal waters;12 and (3) 8,000 MW by 2030,
including 5,000 MW from facilities located in coastal waters.13
Facility Siting and Permitting: Maine allows for the creation of easements to ensure access to
direct sunlight.14 In addition, municipalities and homeowners associations may not unreasonably
restrict residents from installing or using a solar energy device (including clotheslines) on their
property.15 Maine has also developed a model wind ordinance.16 The model ordinance provides
for four types of wind energy facilities and identifies the corresponding authority responsible for
reviewing and approving/denying wind energy facility plans.
Building Codes, Appliance, and Equipment Standards: The Maine Uniform Building and
Energy Code, setting the 2009 versions of the IECC, IBC, IRC, International Existing Building
Code (IEBC) and ASHRAE 90.1 as the mandatory building code standards for residential and
commercial buildings, goes into effect in certain cities and towns in 2010 and statewide in
2012.17 LEED standards are required in new and existing state buildings, if cost effective.18
Electricity Transmission, Interconnection and Storage: The Interstate Renewable Energy
Council 2006 Model Interconnection Procedures provide the basis for the state’s interconnection
procedures and regulations.19 IOUs are required to offer net metering to eligible renewable
energy facilities with capacity limits up to 660 kW.20 Consumer-owned utilities (which include
municipal utilities and electric cooperatives) are required to offer net metering to customergenerators up to 100 kW; however, they are authorized to offer net metering to eligible facilities
with capacity limits up to 660 kW at their discretion. The Maine Public Utilities Commission is
in the process of developing a program to offer green power as an option to residential and small
commercial customers.21
Government Procurement: State agencies are required to purchase 100 percent of their
electricity from renewable energy sources.22
Policies and Plans: Maine has established a goal of reducing GHG emissions to 1990 levels by
2010, 10 percent below 1990 levels by 2020, and 75 percent to 85 percent below 2003 levels in
the long term.23 In 2004, the Department of Environmental Protection submitted a Climate
Action Plan for Maine to achieve these goals.24
Government Entities: Energy Resources Council,25 Finance Authority of Maine,26 Maine
Department of Environmental Protection,27 Maine Public Utilities Commission.28
Regional Memberships: Maine is a member of RGGI and ICAP.
1
36 Me. Rev. Stat. § 2017; 35-A Me. Rev. Stat. § 3401 et seq.; Application Form.
2
36 Me. Rev. Stat. § 5219-X.
http://www.efficiencymaine.com/at-work/for-small-business/loan-programs.
4
35-A Me. Rev. Stat. §10121; Me. Pub. Util. Comm’n Rule 65-407-312;
http://www.efficiencymaine.com/renewable-energy/grants-for-renewables.
5
http://www.efficiencymaine.com/at-work/business-programs/cash-incentives.
6
http://www.efficiencymaine.com/at-home/hesp_program.
7
http://www.efficiencymaine.com/at-home/appliance_replacement_program.
8
http://www.efficiencymaine.com/at-home/residential-lighting-program.
9
http://www.efficiencymaine.com/renewable-energy.
10
35-A Me. Rev. Stat. §3601 et seq.; Me. Pub. Util. Comm’n Rule 65-407-325;
http://www.state.me.us/mpuc/electricity/community_pilot.shtml.
11
35-A Me. Rev. Stat. § 3210; 35-A Me. Rev. Stat. § 3210-C; Me. Pub. Util. Comm’n Rule 65-407-311.
12
LD 2283 (2008).
13
LD 1810 (2010).
14
33 Me. Rev. Stat. §1401 et seq.
15
33 Me. Rev. Stat. §1421et seq.
16
http://www.maine.gov/spo/landuse/docs/ModelWindEnergyFacilityOrdinance.pdf;
http://www.maine.gov/spo/landuse/techassist/windenergy.htm.
17
LD 2257 (2008).
18
Order Regarding the use of “LEED” Building Standards For State Buildings (2003).
19
Me. Pub. Util. Comm’n Rule 65-407-324.
20
Me. Pub. Util. Comm’n Rule 65-407-313; LD 336 (2009).
21
35-A Me. Rev. Stat. §3212-A; Me. Pub. Util. Comm’n Rule 65-407-326.
22
LD 1075 (2009).
23
38 Me. Rev. Stat. § 574 et seq.
24
http://www.maine.gov/dep/air/greenhouse/MaineClimateActionPlan2004Volume%201.pdf.
25
http://www.maine.gov/spo/boards/EnergyResourcesCouncil/index.htm.
26
http://www.famemaine.com/.
27
http://www.maine.gov/dep/.
28
http://www.maine.gov/mpuc/.
3