Maine’s Community Solar Growth Halts After New Law Blocks Net Billing

Maine surged to the top of the U.S. community solar rankings after expanding its program in 2019. By the end of 2025 the state delivered 694 watts of shared solar capacity per resident, far outpacing Minnesota’s 164 watts per person, according to a report from the Institute for Local Self‑Reliance.

The momentum stopped when the Democratic legislature passed, and the governor signed, a law that eliminates net energy billing—a mechanism that credits solar producers for electricity fed back into the grid—for any new community‑scale projects. Residential rooftop solar remains unaffected.

The legislation also levies substantial new fees on already‑operating community solar installations. New Leaf Energy’s policy director Jessica Robertson called the move “incredibly damaging,” saying it undermines confidence in projects built under previous rules.

Eliza Donoghue, executive director of the Maine Renewable Energy Association, confirmed that the rapid growth has ended, noting there is currently no opportunity for further expansion. Developers report that pending projects were canceled once the law took effect, and many doubt the upcoming successor program will restore market confidence.

Net energy billing had added roughly $7 to the average Maine utility bill in 2024, a cost cited by lawmakers as justification for the change. Critics argue the fee shift penalizes a model that let consumers without rooftop space purchase clean power and saved participants money.

Maine still hosts more than 1.9 gigawatts of solar capacity, up from under 100 megawatts in 2019, and the new law encourages storage projects. The Department of Energy Resources plans to solicit stakeholder feedback on a replacement program in the coming months, but industry insiders remain skeptical.

What it means: The abrupt policy shift stalls community solar development, threatens existing investments, and may push developers toward battery storage or out‑of‑state markets. Watch for the Department of Energy Resources’ stakeholder process and any legislative revisions that could revive the sector.