Net Energy Billing

Summary

Note: 2025 tariff rates approved in late December 2024. Additionally, L.D. 1777, enacted in June 2025, made major changes to Maine’s net energy billing (NEB) program. For kWh credit agreements, any amendment after June 1, 2025, cannot extend the original termination date. Front-of-the-meter systems are no longer eligible for NEB unless operational by June 1, 2026, and once a successor DER program is in place, utilities may not enter NEB agreements with grid-side DG systems. Under the tariff rate program, current rates apply through 2025, with new differentiated rates and a 2.25% annual escalation beginning in 2026. A new NEB project charge—$6.00/kW for 3–5 MW systems, $2.80/kW for 1–3 MW, and $0 for <1 MW—will take effect in 2026 for shared financial interest DG systems to recover distribution costs, with exemptions for customer- or cooperative-owned projects. The bill also establishes an NEB procurement program for projects online before November 1, 2025, and phases out existing NEB structures once that program and, later, a successor DER framework are implemented.

Maine offers two compensation options for customer generators and subscribers to community solar projects. Any customer may participate in the Net Energy Billing kWh Credit Program, but only non-residential customers can participate in the Net Energy Billing Tariff Rate Program. 

Net Energy Billing kWh Credit Program

While being called “net energy billing,” the Net Energy Billing kWh Credit Program functions like traditional net metering. Production and consumption are netted on a monthly basis. Excess kWh’s remaining at the end of a billing period are applied to the customer’s next bill as a kWh credit. At the end of a 12-month rolling period, any accumulated unused kilowatt-hour credits may not be applied against any future kilowatt-hour usage. Beginning every April 1, utilities must determine the value of unused/expired kWh credits and send the value to the administrator's of the state's low-income assistance plan and the individual low-income assistance program, including the state's arrearage management program. 

Systems less than 5 MW in capacity are eligible for the program. By 2025, systems with a capacity between at least 1 MW and max 2 MW can be used under the kWh Credit Program if the system is commercially operational by the date specified in a net energy billing agreement or an amended agreement.

Net Energy Billing Tariff Rate Program

The Net Energy Billing Tariff Rate Program is only available to non-residential customers. Instead of receiving kWh credits on their electric bills, participants receive dollar credits on their bills. This allows participants to potentially offset the demand charge components of their bill, which would not otherwise be offset by kWh credits. The dollar credits are based on the production of the system multiplied by a utility-specific rate that is approved annually by the Maine Public Utilities Commission. Systems less than 5 MW in capacity are eligible for the program, however, systems over 1 MW that are installed after September 1, 2022, will receive a bill credit based on a lower rate. 

After 2023, a system may be used for the Tariff Rate Program if it is collocated with all the associated customers, and that those customers are subscribed to 100% of the output. This rule does not apply to systems with a net energy billing agreement that was executed before 2024.