Out-of-State Solar Developers Sue Maine Over New Billing Law

Companies Challenge Cost Shifts

BANGOR, Maine — Two community solar companies based outside Maine have filed a federal lawsuit aiming to block a new state law that changes how solar billing costs are shared.

Berwick Solar and Rumford Solar filed the complaint Tuesday in U.S. District Court in Bangor. The suit names the Maine Public Utilities Commission and commissioners Phil Bartlett, Patrick Scully and Carolyn Gilbert as defendants.

The companies argue that the law, which took effect Jan. 1, unfairly shifts significant new charges onto out-of-state developers. They say the changes violate the U.S. Constitution by discriminating against companies not based in Maine.

Dispute Over Net Energy Billing

The law revises Maine’s net energy billing program, which supports community solar projects. That program is designed to help investors recover costs and encourage investment in renewable energy.

According to the lawsuit, state lawmakers sought to cut the cost of the billing system, but did so by placing heavier financial burdens on developers from outside Maine. The complaint argues that lawmakers were looking for a “political scapegoat” and targeted companies tied to “Wall Street, Goldman Sachs and other non-Maine hedge funds.”

Berwick Solar and Rumford Solar say the new charges are substantial. The filing states that Berwick faces an additional $84,000 each year, while Rumford faces $252,000 annually. The suit says the law will reallocate “hundreds of millions of dollars” to the out-of-state “targeted parties.”

The companies argue that the cost shift is not only harmful to their operations but also unconstitutional. They are asking the court to strike down the law and stop the reallocation of costs.

Part of Broader Legal Pushback

This is the second lawsuit challenging Maine’s recent changes to solar policy. A separate complaint filed in November by dozens of companies also disputes revisions to the net energy billing system.

Maine lawmakers passed the January 1 law as part of a broader effort to rein in the cost of community solar subsidies. The program has expanded quickly in recent years, drawing both in-state and out-of-state developers.

The lawsuit filed by Berwick and Rumford says the Legislature’s decision unfairly singles out outside investors. It claims the law was crafted to appeal to political concerns rather than address the underlying economics of the program.

State Declines to Comment

Spokespeople for Maine Attorney General Aaron Frey’s office and the Public Utilities Commission declined to comment on the lawsuit, citing pending litigation.

The PUC is responsible for overseeing the state’s energy programs, including net energy billing. Commission officials have not yet filed a response in court.