The complete list of New Hampshire solar incentives and tax credits for 2022, plus how to take advantage.
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New Hampshire has some of the highest costs of electricity in the U.S., so even though the state gets a little less sun than average, going solar here is still a great idea. Throw in some state solar rebates, excellent net metering rules, no state sales tax, and a high chance of a property tax exemption, and it’s not hard to see why Granite State residents are keen on rooftop arrays.
New Hampshire State Solar Incentives
|Solar rebates in New Hampshire||New Hampshire offers rebates up to $1,000 for home solar energy installations and up to $1,900 for solar water heating. However, both programs are full for 2022|
|SRECs in New Hampshire||New Hampshire has enacted a renewable portfolio standard but there is no solar carve-out and no viable market for SRECs in the state currently|
|State sales tax exemption||There is no state sales tax in New Hampshire!|
|State property tax exemption||There’s no statewide residential property tax exemption for solar in Nevada, but many local governments offer their own exemptions for value added by home solar installations|
|Net metering||Net metering is mandated by law in New Hampshire at a one-for-one rate with annual payouts from some utilities for remaining excess credits|
|PBIs for solar in New Hampshire||Some utilities in New Hampshire offer performance-based incentives (PBIs) for home solar customers who install energy storage systems|
Solar rebates in New Hamsphire
New Hampshire has a Residential Renewable Electrical Generation Rebate Program which offers residents rebates of $200 per kW capacity, up to $1,000, or 30% of the total purchase cost of their solar installation, whichever is less.
The state also has a Solar Water Heating Rebate Program, offering rebates ranging from $1,500 to $1,900. Both programs are closed to new applications at the time of writing (July 2022) but may be reinstated in 2023 depending on budget approval.
SRECs in New Hampshire
New Hampshire does have a renewable portfolio standard (RPS) and a Renewable Energy Certificate (REC) program. However, there is no specific solar carve-out in the RPS, which means there’s currently no active SREC market in the state.
State sales tax exemptions in New Hampshire
New Hampshire does not have a sales tax. This saves homeowners money upfront on the cost of going solar!
State property tax exemptions in New Hampshire
New Hampshire doesn’t have a statewide property tax exemption for solar but has passed legislation that allows cities and towns to offer such exemptions.
As of 2022, at least 135 towns and cities in New Hampshire offer a property tax exemption to homeowners whose home value increases because of a new solar array or eligible energy storage systems.
To find out if your city or town offers an exemption, check with your local government. You can also ask your solar installer; most local installers know the ins and outs of local solar incentives very well.
Net metering in New Hampshire
The New Hampshire Public Utilities Commission (PUC) requires utilities in the state to offer net metering to residential customers. Surplus energy is applied as a credit to the next month’s bill at full retail electric rates. Credits can be carried over indefinitely and, in certain circumstances, customers can get an annual payment for excess exported energy.
Changes may be coming for net metering in New Hampshire, however, so it’s best to go solar soon. That way, you can take advantage of the current law which maintains rates for existing customers up until 2040. There are currently two bills passed by the House of Representatives in New Hampshire that look to cut net metering compensation considerably. This is in advance of the imminent publication of a years-long study looking at fair net metering practices in the state.
New Hampshire Electric Cooperative (NHEC) has a time-of-day pilot program that offers greater compensation for customers who draw less from the grid during peak use hours.
At the time of writing, Eversource, Unitil, and Liberty Utilities provide credits for 100% of default energy charges and transmission and 25% of the distribution charge. At the end of each annual billing cycle (typically in March), customers can request a payment for any accumulated credit balance in excess of $100. Customers closing their accounts can also request a one-time payment for any accumulated credit balance.
Utility PBIs in New Hampshire
In addition to offering basic net metering, Eversource also offers a solar storage incentive. This incentive is worth $225 per average kW used for customers who install approved solar storage systems and share energy storage with the grid during peak hours. For a typical home battery contributing an average of 5 kW per event, this would earn $1,125 per year.
Final thoughts on state solar incentives in New Hampshire
With electricity prices over 22 cents per kilowatt hour in New Hampshire, homeowners who go solar can very quickly recoup the cost of their array through utility bill savings alone. By our calculations, a home solar array in New Hampshire could save homeowners more than $67,000 in electricity costs over the 25-year warranty period of the panels. Most arrays will save homeowners around $22k in just 10 years.
If you factor in the increased federal solar investment tax credit of 30%, utility and state rebates, full retail rate net metering, and performance-based incentives, the solar payback period in New Hampshire could be shorter even than in some states that get more sun.