An Act To Encourage the Use of Solar Energy
Maine Legislature, Session 122, LD 1586
Committee: Utilities and Energy
Sponsors: BRAUTIGAM, COURTNEY, ADAMS, BABBIDGE, CURTIS, FLETCHER, MARLEY, WOODBURY, PERRY, WESTON
Amends: 35-A MRSA §321, 35-A MRSA §3211-A, 36 MRSA §1760, 36 MRSA §5219-Y

Legislative Document 
No. 1586 
H.P.1122 
House of Representatives, April 26, 2005 
An Act To Encourage the Use of Solar Energy 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
~~/h.1l/oc~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative BRAUTIGAM of Falmouth. (GOVERNOR'S BILL) 
Cosponsored by Senator COURTNEY of York and 
Representatives: ADAMS of Portland, BABBIDGE of Kennebunk, CURTIS of Madison, 
FLETCHER of Winslow, MARLEY of Portland, WOODBURY of Yarmouth, Senators: 
PERRY of Penobscot, WESTON of Waldo. 
Printed on recycled poper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 3S-A MRSA §3211-A, sub-§I, 1(F, as enacted by PL 2001, 
c. 624, §4, is amended to read: 
F. 
"Program fund" means the conservation program and solar 
incentive fund established by the commission pursuant to 
subsection 5. 
Sec. 2. 3S-A MRSA §3211-A, sub-§l,,1 is enacted to read: 
I. 
"Qualified solar energy system" means; 
(1) 
A solar photovoltaic system. 
For purposes of this 
subparagraph, "solar photovoltaic system" means a solar 
energy device with a peak generating capacity of 100 
kilowatts or less used for generating electricity for 
use in a residence or place of business: or 
(2) 
A solar thermal system. 
For purposes of this 
subparagraph, 
"solar 
thermal 
system" 
means 
a 
configuration of solar collectors and 
a 
pump, 
heat 
exchanger and storage tank or fans designed to heat 
water 
or air. 
Solar 
thermal 
system 
types 
include 
forced 
circulation, 
integral 
collector 
storage, 
thermosyphon and self-pumping systems. 
Sec. 3. 35-A MRSA §321l-A. sub-§4, as amended by PL 2003, c. 
217, §l and c. 275, §l, is further amended to read: 
4. 
Fundinq level. 
The commission shall assess transmission 
and distribution utilities to collect funds 
for conservation 
programs, 
the 
solar 
energy 
rebate 
program 
established 
in 
subsection 5-8 and administrative costs in accordance with this 
subsection. 
The 
amount of all assessments by the commission 
under this subsection plus expenditures of a transmission and 
distribution utility associated with prior conservation efforts 
must 
result 
in 
total 
conservation 
expenditures 
by 
each 
transmission and distribution utility that: 
A. 
Are 
based 
on 
the 
relevant 
characteristics 
of 
the 
transmission and distribution utility I s service territory, 
including the needs of customers; 
a. 
Do not exceed .15 cent per kilowatt-hour; 
C. 
Except as provided in subsection 7 -A, are no less than 
0.5~ of the total transmission and distribution revenues of 
the transmission and distribution utility; and 
Page l-LR2277(1) 
D. 
Are proportionally equivalent on 
a 
per-kilowatt-hour 
basis 
to 
the 
total 
conservation 
expenditures 
of 
other 
transmission 
and 
distribution 
utilities, 
unless 
the 
commission finds that a different amount is justified. 
Sec. 4. 35-A MRSA §3211-A, sub-§5, as enacted by PL 2001, c. 
624, §4, is amended to read: 
5. 
Conservation proqram and solar incentive fund. 
The 
commission shall establish a 
eeRseFva~~eR-pFe~Fam fund to be used 
solely 
for 
conservation 
programs 
and 
the 
promotion 
and 
installation of qualified solar energy 
systems 
in homes 
and 
businesses. 
A. 
The commission shall deposit all assessments collected 
pursuant to this section, other than funds deposited in the 
administration fund, into the program fund. 
B. 
Any interest earned on funds in the program fund must be 
credited to the program fund. 
C. 
Funds not spent in any fiscal year remain in the program 
fund to be used for conservation programs and the promotion 
and installation of qualified solar energy systems in homes 
and businesses. 
D. 
The commission may apply for and receive grants from 
state, 
federal 
and 
private 
sources 
for 
deposit 
in the 
program fund and also may deposit in the program fund any 
grants or other funds received by or from any entity with 
which the commission has an agreement or contract pursuant 
to this section if the commission determines that receipt of 
those funds would be consistent with the purposes of this 
section. 
If the commission receives any funds pursuant to 
this paragraph, it shall establish a separate account within 
the program fund to receive the funds and shall keep those 
funds and any interest earned on those funds segregated from 
other funds in the program fund. 
Sec. 5. 35-A MRSA §3211-A, sub-§5-B is enacted to read: 
5-B. 
Solar en.fu·~.eb_ate program. 
An owner or tenant of 
residential or 
commercial property located in the State who 
installs a qualified solar energy system that will be connected 
to the electrical grid is entitled to a rebate, to the extent 
~hat funds are available. 
Funding for the solar energy rebate is 
from the program fund in an amount up to $500,000 per year. 
A. 
A solar photQYQJ...tJI.j.c system, as defined in subsectiQn 1, 
paragraph I, subparagraph (1), that is installed by a master 
electrician who has been certified by the North American 
Board of Certified Energy Practitioners qualifies for 
a 
rebate of $3 per watt on the first 2,000 watts of installed 
capacity and $1 per watt for the next 1,000 watts. 
B. 
A solar 
tl!e~m~sys-.te.~d~_s_i9-lliLd to 
hejLL-W_Q..te_:r~~ 
defined in subsection ~ paragraph I, subp~raph (2), that 
is installed by a 
licen~ed plumber who has been certifie~ 
the commission qualifies for a rebate of 25% of the cost of 
the system, including installation, or $500, whichever is 
lllL.. 
C. 
A solar thermal system designed to heat air, as defined 
in subsection L 
paragraph 1. subparagraph (2), qualifies 
for a rebate of 25% of the cost of the system, including 
installation, or $500, whichever is less. 
In the case of a newly constructed residence, the rebate must be 
available to the original owner or occupant. 
Sec. 6. 35-A MRSA §3211-A, sub-§ll, 1JA, as enacted by PL 2001, 
c. 624, §4, is amended to read: 
A. 
A 
description 
of 
actions 
taken 
by 
the 
commission 
pursuant to this section, 
including descriptions of all 
conservation and solar energy rebate programs implemented 
during the prior 12 months and all conservation and solar 
energy 
rebate 
programs 
that 
the 
commission 
plans 
to 
implement during the next 12 months, 
a description of how 
the commission determines the cost effectiveness of each 
conservation 
and 
solar 
energy 
rebate 
program 
and 
its 
assessment of the cost effectiveness of programs implemented 
during the prior 12 months; 
Sec. 7. 36 MRSA §1760, sub-§88 is enacted to read: 
88. Solar energy equiRQent. 
Beginning October 1, 
2005, 
sales 
of 
solar 
energy 
equipment 
directly 
related 
to 
the 
installation of a qualified solaL.......e...lliU..Qy system, as define~ 
Title 35 A, section 3211 A, 
subsection L 
paragraph I, that is 
being used as a primary or auxiliary power system for the purpose 
of 
heating 
or 
otherwise 
supplying 
the 
energy 
needs 
of 
an 
individual's principal residence or commercial building located 
in the State. 
Sec. 8. 36 MRSA §5219-Y is enacted to read: 
§52l9-Y. 
Inc9me taz credit for installation of solar thermal 
system 
An 
owner or tenant of residential or commercial property 
located in the State who installs a new solar thermal system as 
defined in Title 35-11., section 3211-11., subsection 1, paragraph I, 
§MParagraph 
(2) 
i~t_itled to 
a 
credit against the 
taxes 
imposed by this 
P~rt equal to 25°-0 of the __ r0st of the system, 
including installation, or $500, whichever :"'.Lless. 
In the case of a newly constructed residence, the credit 
must be available to the original owner or occupant. 
A taxpayer 
entitled to a credit that exceeds the taxpayer I s total tax due 
!~e tax year in which .the credit is earned may carr~~~the 
excess amount and apply it to the taxpayer I s tax liability for 
anY-.Qf the n~K.~k~ing_.-3~.axable y~.ail. 
The credit allo\'!e~lL 
including carry-overs, may not reduce the tax otherwise due under 
this Part to less than zero. 
SUMMARY 
This bill provides for rebates, sales tax exemptions and 
income tax credits for the purchase and installation of solar 
water heating and solar air heating systems and for rebates and 
sales tax exemptions for the purchase and installation of solar 
electric, 
or 
"photovoltaic," 
systems 
for 
residential 
or 
commercial property owners.