2022 New Hampshire Solar Tax Credits, Rebates & Other Incentives
Here’s a quick look at the solar incentives in New Hampshire:
- Federal Solar Tax Credit (ITC)
- New Hampshire Solar Rebate
- Net Metering
- Property Tax Exemption
- Energy Storage Rebate
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Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.
New Hampshire is lacking compared to other New England states when it comes to the amount of solar power used, with more commercial solar installations than residential ones. In 2016, one of New Hampshire’s biggest solar projects, the Peterborough Solar Array, was completed with enough capacity to generate 1 megawatt (MW) of electricity — enough to power over 152 New Hampshire homes.1
The state of New Hampshire offers a decent amount of solar incentives to residents who install solar panel systems to meet their Renewable Portfolio Standard (RPS) goal. Those incentives, paired with rising electric rates in New England, may be the reason why more and more residents are starting to install home solar panels in the Granite State.2
Most people look to install a solar power system to reduce energy costs, become independent from their utility company and/or switch to renewable energy sources. Whatever your reason for making the switch, we want you to capitalize on all of the state rebates and financial incentives available in New Hampshire.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in New Hampshire
|New Hampshire Solar Incentive||Description|
|Federal Solar Tax Credit (ITC)||The federal solar investment tax credit, or ITC, allows homeowners to claim 30% of their solar energy system costs as a credit against the federal taxes they owe. The federal tax credit is set to reduce incrementally starting in 2033 and be eliminated for residential systems in 2035 unless it is extended by Congress.3|
|Residential Small Renewable Energy Rebate Program||Rebates of $200 per kilowatt of solar panel power installed up to $1,000 or 30% of the total solar energy system cost, whichever is less.4|
|Net Metering||If you’re a customer of Eversource, Liberty Utilities, New Hampshire Electric Cooperative or Unitil, you can take advantage of net metering. Through this program, any extra energy your solar energy system produces is sent to the grid in exchange for utility credits that you can use toward your next month’s bill.5|
|Eversource ConnectedSolutions Energy Storage Rebate||If you’re an Eversource customer who installs a solar battery, you can be compensated for sharing your energy storage with the utility during high-demand hours.6|
|Property Tax Exemption for Renewable Energy and Electrical Energy Storage||New Hampshire allows cities and towns to offer an exemption from local property taxes for the assessed value of solar energy systems, as well as electrical energy storage systems and more.7|
New Hampshire Solar Rebate
One of New Hampshire’s main solar incentives is the Residential Small Renewable Energy Rebate Program. The New Hampshire Public Utilities Commission (PUC) offers qualifying state residents a rebate of $0.20 per watt ($200 per kilowatt) of solar panel power installed on their home up to $1,000 or 30% of the total solar energy system cost, whichever is less.8
We should note: This rebate is offered on an application basis and there is a fund limit for each year. You can find the application here, however, as of November 2021, funds for 2022 have already been allocated and no new applications are currently being accepted.9
Other New Hampshire Solar Incentives
While the rebate might be the most enticing solar incentive, New Hampshire and its local utilities offer several more programs that can reduce your overall solar installation costs.
New Hampshire also offers a Renewable Energy Certificate (REC) program, where customers can earn credits for the solar power their system produces. However, New Hampshire doesn’t have an active Solar Renewable Energy Credit (SREC) market. At the moment, there aren’t many SREC buyers in the state.
Here’s a look at some of the state and local incentives available in New Hampshire as of 2022:
New Hampshire Solar Property Tax Exemption
While New Hampshire does not have a statewide solar tax exemption for property taxes, the state allows municipalities to create their own laws to exempt or partially exempt residential property owners from taxation for renewable energy systems.10 The exemption may apply to any clean energy system, including solar photovoltaic (PV) and thermal systems, as well as wind and central wood-fired systems.11
New Hampshire does not have sales tax, so systems will already be exempt from that.
Net Metering in New Hampshire
Net metering is a policy that allows two-way energy movement between your home and the electric grid. When your solar panels fail to produce the energy your home is using, the grid will make up the difference, and you’ll be billed for the energy consumed. When your panels are overproducing, the excess goes to the power company, and you earn energy credits. Credits can be used to reduce your bill in future billing cycles.
If you have Eversource, Liberty Utilities, New Hampshire Electric Cooperative or Unitil as your power provider, net metering is available to you. Eversource has the best net metering policy in the state, with no cap on overproduction on systems up to 100 kW — virtually every home solar project — and unlimited roll-over up to 600 kWh per year.13 This makes it very easy to eliminate your electric bills based off electricity rates in New Hampshire.
Eversource ConnectedSolutions Demand Response Battery Rebate:
Eversource not only has the best net metering system, they also offer a rebate for home battery storage. It works similar to net metering, except instead of being compensated for energy that your panels send directly to the grid, you’re compensated for letting Eversource use the electricity that’s been stored in your battery.14
By signing up for the ConnectedSolutions Demand Response program, Eversource customers are agreeing to let the utility use energy from their storage during times of high-demand. Eversource says they will not draw energy from customers during extreme weather conditions.15
Federal Solar Tax Credit
Regardless of which state you live in, all homeowners in the U.S. are eligible for the solar investment tax credit, or ITC, for installing solar panels as well as solar batteries and other energy storage systems. You can claim the ITC on your federal tax returns, and it deducts 30% of the total cost of the system from the taxes you owe.
With the average cost of a solar system in New Hampshire at about $18,915, the federal tax credit can lead to a savings of more than $5,600.
The ITC was first developed through the Energy Policy Act of 2005, under the Bush administration. Initially, it was set to last for just two years, but due to its success has continually been extended for solar panel installations. It’s important to note that, unless Congress extends the credit, it is set to phase out by the end of 2023.
To be eligible for the solar tax credit, homeowners must meet the following criteria:
- You have installed a residential solar energy system at any point from 2006 through the end of 2022.
- You have placed the solar energy system in a residential location. It does not have to be your primary residence.
- You own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.
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FAQ: New Hampshire Solar Incentives
At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from New Hampshire residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at firstname.lastname@example.org.
While New Hampshire doesn’t have a statewide solar tax credit, all homeowners who install solar pv systems are eligible for the solar Investment Tax Credit through the federal government.
The New Hampshire Public Utilities Commission (PUC) offers qualifying state residents a rebate of $0.20 per watt ($200 per kilowatt) of solar panel rated power produced up to $1,000 or 30% of the total solar energy system cost, whichever is less.17 However, funds for 2022 have already been allocated.