New Hampshire Solar Incentives, Tax Credits & Rebates (2024 Guide)
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New Hampshire homeowners can take advantage of various financial incentives to make going solar more affordable. Our guide details local net metering programs, state rebates, and other Granite State incentives to help you save money on your investment. A top solar company can also advise you on the incentives you may qualify for.
What Are the Available New Hampshire Solar Tax Credits and Rebates?
New Hampshire provides a property tax exemption, solar rebates, and other statewide incentives. Learn more about these benefits below.
Renewable Energy Property Tax Exemption
Installing renewable energy systems such as solar panels, wind turbines, and biomass heaters increases your home value. This typically means your property taxes will rise, but the New Hampshire Department of Revenue Administration (NHDRA) program includes a property tax exemption for solar equipment. This allows you to benefit from solar energy without paying more taxes.
More resources: Database of State Incentives for Renewables and Efficiency (DSIRE) page
Residential Renewable Electrical Generation Rebate Program
The New Hampshire Residential Renewable Electrical Generation Rebate Program allows residents who install eligible renewable energy sources, such as home solar panel systems, to receive rebates based on the system’s capacity. This incentive maxes out at 30% of the system’s cost or $1,000, whichever is less.
More resources: Department of Energy page
How Does the Federal Solar Tax Credit Work?
New Hampshire homeowners can qualify for the federal solar investment tax credit (ITC). This incentive, which is offered by the federal government, reduces the amount of your owed federal taxes at a rate equal to 30% of your total solar installation cost. It rolls over to the next tax period if you owe less than the credited amount. You won’t qualify for this credit if you lease your solar panels or choose a power purchase agreement (PPA) because these payment options don’t grant you system ownership. You must buy your system in full or take out a solar loan.
Is Net Metering Available in New Hampshire?
Net metering is a program that allows residential solar panel owners to send energy to the power grid when their systems produce more energy than they consume. In exchange, the utility company provides credits on the homeowner’s electricity bills to reduce monthly costs.
Specific details and regulations regarding net metering in New Hampshire can vary. We recommend consulting the New Hampshire Public Utilities Commission or your local utility providers for the most up-to-date information and eligibility requirements.
How Much Do Solar Panels Cost in New Hampshire?
Solar panels cost an average of $20,650 at the national level. This price is before applying solar incentives. According to EnergySage data, the solar cost in New Hampshire is slightly higher, at $22,140 for a typical 6-kilowatt (kW) system. Applying the federal tax credit saves you $6,642, with a total cost of $15,498.
The solar financing option you select can affect your overall savings and payback period. Learn about each payment method below to see which best matches your needs.
- Cash purchase: The most straightforward option is a full purchase. This means paying the complete cost of your solar panel system up-front. Though this requires a substantial initial investment, you immediately own your system and qualify for all incentives.
- Solar loan: Solar loans allow you to spread out your system cost in monthly payments over a predetermined period. Keep in mind that you’ll pay more for your system in total due to interest rates. Terms vary by loan and provider, so go over your contract details carefully.
- Solar lease: Solar leases involve paying a fixed monthly rate to use solar panels on your property. While this option costs less up-front, your installer retains ownership of the system, so you won’t qualify for solar incentives. You’ll benefit from lower electricity bills but won’t see a return on investment or increased property value.
- Power purchase agreement: PPAs are arrangements where a solar provider installs and maintains solar panels on your property. You buy the electricity the system generates at a predetermined rate, which is often lower than traditional utility rates. This payment option eliminates up-front costs and maintenance responsibilities, but you don’t qualify for incentives or receive any other benefits.
Is Going Solar in New Hampshire Worth It?
Going solar is worth it in New Hampshire despite the higher installation costs. The state has abundant sunlight and various solar incentives to make solar more affordable. Generating your own power will also help you save on energy bills and combat increasing electricity rates. Additionally, using clean energy reduces your reliance on fossil fuels and lowers carbon emissions, helping contribute to a better environment.
Our Conclusion
The state of New Hampshire is an excellent place to go solar. Though installation costs are slightly higher than the national average, there are several solar incentives to help reduce your investment. This guide covers the most significant incentive programs, but you may also qualify for smaller city or municipality incentives that you may want to consider. We recommend checking DSIRE for more information.
You can use our tool below to connect with top solar installation companies. Our recommended solar installer for New Hampshire residents is SunPower. Check out our guide to the best solar companies in New Hampshire to learn more about reputable installers near you.
Find the Best Solar Companies in Your City
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FAQ About Solar Tax Incentives in New Hampshire
Does solar make sense in New Hampshire?
Yes, solar makes sense in New Hampshire. Though the state experiences colder winters and less sunlight than other states, solar power can still be a viable and beneficial energy solution. New Hampshire offers quality net metering programs and other incentives to help make going solar more affordable.
What is the best direction for solar panels in New Hampshire?
Solar panels in New Hampshire should face south for maximum sunlight exposure. Solar panels facing south can capture sunlight from sunrise to sunset, optimizing their energy generation potential.
Does New Hampshire have an SREC program?
Yes, New Hampshire offers solar renewable energy credits (SRECs) through its net metering programs. This means you can earn credits for excess energy that your solar energy system generates, lowering your monthly energy costs.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
