Natural gas, not solar panels and wind turbines, is the primary driver behind soaring power prices in Maine, according to a new report released this week by the state’s energy department. 

Mainers pay some of the highest electricity rates in the country — only five states had higher residential prices in November 2025. They also spend a lot to heat their homes, given the prevalence of expensive fuel oil. Possible solutions to the problem of high energy costs are developing clean power, investing in load-flexibility strategies, and continuing to push for home-heating electrification, concludes the report, which was prepared by The Brattle Group.

As Americans grapple with unprecedented utility bills, clean energy has increasingly become a scapegoat, in Maine and beyond. 

President Donald Trump has been perhaps the most notable voice, branding solar and wind the ​“scam of the century,” though concerns about renewable energy and affordability have come from both sides of the aisle. In Maine, Democratic lawmakers voted last June to cut support for community solar as a way to lower energy costs, and some Massachusetts legislators have proposed pulling back on energy efficiency and renewable power initiatives.

The new report is the latest in a growing body of research that challenges these arguments — and demonstrates that the major drivers of high energy costs have nothing to do with solar panels, wind turbines, or heat pumps. 

The information comes just as the state launches the process of developing its latest two-year energy plan, which will take effect in 2027. The document outlines goals and lays out strategies for making energy cleaner, less expensive, and more reliable.

“It’s helpful to have the information out there for the general public and policymakers to understand what really is driving energy price volatility here in Maine,” said Dan Burgess, acting commissioner of the state energy department under Democratic Gov. Janet Mills. 

Transmission and distribution expenses are partially to blame for the state’s rising bills, thanks to growing equipment and construction costs, the need to replace aging infrastructure, and repairs following storms. 

But the factor that most influences power costs in Maine is the volatility of natural gas prices, the report finds. Maine is part of the six-state New England grid, which gets more than half its electricity from gas-burning power plants. Roughly 80% of the time, natural gas is the marginal generation resource — that is, it is the most expensive power source, which sets the price for all the energy flowing onto the grid at that moment. 

“Natural gas is almost always what is setting the price here in New England,” Burgess said.

Between 2021 and 2023, electricity supply prices in Maine nearly tripled, rising from 6.4 cents per kilowatt-hour to 17 cents per kilowatt-hour. During that period, natural gas prices spiked in response to three winter storms and the Russian invasion of Ukraine. 

Natural gas market trends suggest the fuel is only going to get more expensive, the report finds. As the United States continues to expand its liquefied natural gas export capacity, more competition for the supply is likely to drive up prices. Surging demand for electricity to power data centers — even those built beyond New England — could also increase natural gas prices nationally. 

Some, including in the Trump administration, have argued that this issue is further exacerbated by New England’s failure to expand gas supply to keep pace with growing energy demand. Critics of that approach say it is misguided, however, and the Maine report does not suggest pipeline expansion as a solution to the state’s energy-cost problems. 

Instead, the analysts propose three main paths toward more affordable energy bills in Maine. The first is accelerating clean energy development so that volatile natural gas prices have less impact — a feat made more difficult by the Trump administration’s vehement opposition to offshore wind, which was meant to be a cornerstone of the New England grid. The second is adopting what the report calls ​“load flexibility,” which means shifting some demand, like EV charging, to hours when there is less load on the grid. 

The third is continuing the electrification of home heating. 

Maine has earned headlines for its success in promoting heat pump installations; it hit its goal of 100,000 new heat pumps in 2023, two years before the target date, and is now aiming for a total of 275,000 new installations by 2027. In a state where roughly half of households still use heating oil for warmth, heat pumps offer a more affordable option than the pricey fossil fuel.

“We’re still the most home-heating-oil–reliant state in the country,” Burgess said. ​“Switching to heat pumps can reduce energy expenses.”