Maine Legislature backs plan to reform state’s clean energy credit program

The Maine Legislature on Wednesday approved a proposal meant to address the problems that both sides of the aisle agree exist for the state’s clean energy credit program.

While some wanted the proposal to go further in lowering costs for ratepayers, the House and Senate both voted in favor of LD 1777. Among other changes, it asks the Governor’s Energy Office to develop a successor program for front-of-the-meter net energy billing projects. The Public Utilities Commission would need to approve the plan, but only if the benefits to ratepayers outweigh the costs.

During the final enactment vote, lawmakers opted to adopt a floor amendment that clarifies certain provisions of the bill, including establishing December 2025 as the deadline for the new program. 

In the House, Rep. Sophie Warren (D-Scarborough) encouraged her colleagues to support the measure. “If we want to sustain public support for the clean energy transition, we have got to ensure that these costs are not unfairly growing, or that they’re not unfairly passed on to those who can least afford to pay them,” she said. “We need to ensure that this program, and these rates are sustainable and that is what LD 1777 does.”

Net energy billing is a policy program designed to encourage customers to install or participate in small-scale renewable energy projects like solar panels by offering credits to offset their electricity bills. It was expanded in 2019 so customers can use renewable energy generators located outside of their property but within the same utility service territory, such as a community solar project. 

Front-of-the-meter projects include community solar projects and those in the state’s current tariff rate program, which is used by nonresidential customers. If LD 1777 is signed into law, front-of-the-meter projects would no longer be eligible to participate in net energy billing once the successor program is in place. 

During a work session for LD 1777, Public Advocate Heather Sanborn said if passed the annual savings for ratepayers statewide over the next 16 years are estimated to be an average of $47 million from proposed changes to the tariff rate program and $20 million from changes to the kilowatt hour program.

Currently, the kilowatt hour program is open to all customers and provides kilowatt hour credits on participating customers’ bills if they install renewable energy generators such as solar panels or join a community solar project, where customers receive a portion of a solar farm’s credits. The credits expire after 12 months. This program, in particular, has come under fire for providing generous incentives to solar farm developers that utility customers are helping pay for. 

LD 1777 creates a monthly charge for kilowatt hour projects starting January 2026 to offset the associated costs currently passed on to ratepayers. 

While the Energy, Utilities and Technology Committee rejected other proposals, including those to repeal net energy billing entirely, it carried over some legislation such as LD 1936 that could serve as vehicles for further tweaks to the program in the next legislative session.