Maine recently passed LD 1777, a sweeping law that will undermine the state’s Net Energy Billing (NEB) program and permanently damage Maine’s reputation as a climate leader. While described as a compromise to protect ratepayers, the legislation, particularly in its treatment of existing projects, represents a troubling shift for the policy principles that have guided Maine’s clean energy leadership.

community solar farm in Maine

At Nexamp, we are proud to have invested in Maine’s clean energy economy. With an office in Portland, many Nexampers call Maine home. Our Maine portfolio has created roughly 3,500 local jobs. Additionally, our 40 projects across the state serve nearly 20,000 customers, a majority of them residential households who save an average of $232 annually through community solar. LD 1777 jeopardizes those savings by unraveling the financial agreements that made these projects possible. Rather than protecting consumers, the bill effectively penalizes them for participating in a clean energy solution the state itself helped promote.

As a clean energy company invested deeply in Maine's communities, Nexamp views LD 1777 not just as a policy misstep, but as a disruption to the trust, transparency, and affordability that Mainers deserve.

LD 1777 at a glance

The bill makes several significant changes:

New Tariff Structure: The credits produced by projects serving Maine businesses, schools, and municipalities would be immediately cut by more than a third and put into a new structure that could limit them further in the future.

New Tax on Community Solar: For community solar projects serving residential customers, LD 1777 would impose a new monthly tax of up to $30,000 per project, or up to $360,000 per year.

Retroactive Impact: LD 1777 will apply these new rules to existing projects, which have been built, paid for, and are currently serving customers under the 20-year contracts originally provided by the State of Maine. This is not regulatory reform; it’s a breach of economic trust.

A clear voice of opposition

These are not theoretical concerns; they are changes that directly threaten the energy savings Maine residents have already come to rely on. Community solar was designed to broaden access to clean energy and lower electricity bills for families, small businesses, schools, and towns. Thousands of Mainers made the choice to participate in good faith, based on clear promises from the state. LD 1777 now risks breaking that trust by retroactively changing the rules and potentially slashing those savings.

Notably, LD 1777 would only make changes to community solar projects and their customers, not to the projects owned by individual homeowners, which receive the same exact compensation today. Supporters of the bill, like Rep. Sophia Warren, argue the intent is to “right-size” the NEB program. But writing two sets of rules—one more generous for those who can afford to pay for solar up front and one more punitive for those who cannot—is the exact inequity the NEB program was trying to solve.

Thoughtful evolution in solar compensation

Change is expected and necessary as the industry grows, but how we implement change matters. Take Massachusetts’ SMART program for example. The SMART program, though it has changed and evolved over the years, demonstrates the power of predictable, equity-centered solar policy to foster steady growth, resilient markets, and lasting community value.

By contrast, LD 1777 is undermining Maine’s clean energy progress. The retroactive changes don’t just disrupt developers, they undercut savings for residents, threaten local job creation, and weaken public trust in state-led climate solutions. Developers need to know that when they commit capital, policy won’t pull the rug out from under them, and residents need to know that when their representatives design forward-looking programs that will save them money, create valuable employment opportunities, and make their state more sustainable, that policy won't change after they start enjoying the benefits. 

The cost of uncertainty

Clean energy thrives on clarity, continuity, and commitment. LD 1777 disrupts this. It wrongly targets your community solar projects with punitive fees and does nothing to address the real drivers of rising electricity rates for Mainers, sending the signal that Maine can’t be trusted to stand behind its own policies. This bill will stall local investment, delay Maine’s climate goals, and alienate the very partners the state needs to reach them. At the same time, it makes it harder for Maine residents, particularly low-and-moderate income residents, to enjoy reductions on their electric bills, making them more vulnerable to the fluctuations in energy costs.

While we are disappointed in the passage of this regressive legislation, our work in Maine is far from over. We will continue to act on our mission in the Pine Tree State—to democratize clean energy and support local energy independence.