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Energy industries

Maine Energy Law Updates: A New Era for Clean Energy and Market Participation

Strategic Insights

— 2 min read

The Maine legislative session has recently concluded with a slate of new major energy-related legal updates that will significantly impact energy planning, clean energy development, and market participation in the state. These updates, set to take effect in September, include the sunset and recalibration of net energy billing, overhaul of renewable portfolio standards, and creation of a cabinet-level energy department. The changes aim to promote clean energy development and mitigate environmental concerns, while also addressing the concerns of existing commercial and industrial energy participants.

Key Takeaways:

  • The Maine legislative session has produced significant updates to energy-related laws, including the sunset of net energy billing, overhaul of renewable portfolio standards, and creation of a cabinet-level energy department.
  • The net energy billing program has been significantly overhauled, with a cut-off date of December 31, 2025, for new entrants, reduced compensation for existing commercial and industrial NEB program participants, and a monthly fee (referred to as a "monthly net energy billing project charge") beginning in 2026 for certain kWh NEB program participants.
  • The updates to the renewable and clean resource procurement laws increase Maine's RPS and create a new clean energy standard, requiring 90 percent of retail electricity to come from renewable sources and 10 percent from "clean resources" by 2040.
  • The Maine Department of Energy Resources has been elevated to a cabinet-level agency, granting it new powers and responsibilities, including statewide energy planning, advancing and administering various clean energy procurements and climate efforts.
  • The MPUC has been directed to conduct a procurement for energy or RECs from Class 1A resources, with a preference for generation projects located on PFAS-contaminated lands or that minimize the use of uncontaminated farmland or forested lands.
  • Several other energy law-related updates are worth noting, including the direction for the implementation of a legislatively-directed rate design for the recovery of stranded costs, the authorization for the OPA to access and review information from public utilities, and the study on the future of electric transmission infrastructure in the state.

Statistics:

  • The reduction in compensation for participating solar developments amounts to approximately 20 percent. (Source: Office of the Public Advocate)
  • By 2040, 90 percent of retail electricity must come from renewable sources, and 10 percent from "clean resources." (Source: Maine Legislative Session)
  • The Maine Department of Energy Resources will formally launch later this year, led by a commissioner to be appointed by the Governor and confirmed by the legislature. (Source: Maine Department of Energy Resources)

Sources:

  • P.L. 2025, ch. 430
  • P.L. 2025, ch. 386
  • P.L. 2025, c. 476
  • P.L. 2025, ch. 392
  • MPUC Docket No. 2024-00235, Order (April 4, 2025)
  • MPUC Docket No. 2025-00203, Order (July 11, 2025)
  • Resolves 2025, ch. 51
  • Resolves 2025, ch. 57
  • Resolves 2025, ch. 67
  • Foley Hoag LLP (authors: Hamid Hoshmand, Logan Malik, and Brett Reilly)

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