AUGUSTA, Maine - Governor John Baldacci of Maine has approved a bill that creates rebates for homeowners and businesses that install solar energy systems.

The rebates apply to both solar photovoltaic power systems and solar thermal systems used to heat water or air. Solar photovoltaic systems installed before 2007 will earn a rebate of $3 per watt for the first 2,000 watts and $1 per watt for the next 1,000 watts, for a maximum rebate of $7,000. Solar thermal systems will earn a rebate of 25 percent of the system cost, including installation, up to a maximum rebate of $1,250.

The rebates will be funded through an assessment of the state's utilities.