New Hampshire Solar Incentives: Tax Credits & Rebates Guide (2022)

By Jacob L.

If you are a property owner in the state of New Hampshire, now is a great time to purchase a new solar energy system. With the cost of energy on the rise across the United States, and especially in New Hampshire, solar power has become a great option for homeowners and businesses to lower their electricity bills.

Now, the government of New Hampshire has made it even easier for residents to purchase solar panels, thanks to its introduction of a variety of tax credits and rebates designed to lower the costs associated with your purchase. Keep reading to learn all about how your purchase and installation of solar panels can be made more financially attainable.

Why Go Solar in New Hampshire?

Solar energy has been on the rise throughout the United States. Over the last decade, solar energy has seen an increase in popularity in New Hampshire, which is partly a result of the state incentivizing the use of solar power among homeowners and businesses. In the coming years, it is likely that the solar industry in New Hampshire will only continue to grow.

New Hampshire offers many reasons to purchase and install a photovoltaic solar energy system on your property. With nearly 198 sunny days per year, which is slightly below the national average of 205 days, New Hampshire has a decent climate for solar energy production. Plus, with improvements in solar panel technology, solar energy can be produced even in colder and cloudier climates. Installing solar panels will also reduce your reliance on fossil fuels, reduce your carbon footprint, and ultimately help mitigate the onset of climate change.

Finally, solar panels can make your home far more valuable. According to Zillow, the average home experiences a 4.1% increase in its value after the addition of a solar power system. As a result, an average home in New Hampshire worth $418,382 will see its value increase by an average of $17,154 with the addition of new solar panels. The additional value could be higher if you live in more expensive areas.

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New Hampshire Solar Cost

The average cost of a 5 kilowatt (kW) solar panel installation in New Hampshire ranges from $14,578 to $19,722. On a cost-per-watt basis, solar panel installation in New Hampshire averages at $3.43. Solar panels have fallen in price in New Hampshire by more than 80% over the past decade.

How Much Can You Save on Solar in New Hampshire?

Property owners in New Hampshire can save lots of money on their electricity bills when they purchase renewable energy systems. When solar panels produce electricity for your home, they can reduce the amount of energy that you pull from the grid, thus lowering your bills. Because residents of New Hampshire spend an average of $120.01 per month on energy bills, their potential savings arising from solar can amount to $1,440 per year.

The average payback period is nine years, meaning that you will make back the amount you spent on installation costs after nine years of usage. You can expect to save as much as $28,409 over the estimated 25-year life of your solar panel system.

The Best Solar Incentives, Tax Credits, & Rebates in New Hampshire

There are several public and private incentives in New Hampshire that help you save on your purchase of solar panels in New Hampshire:

Incentive Summary End Date
Federal Solar Tax Credit (ITC) If you live in New Hampshire, you can take advantage of the Federal Solar Tax Credit and get a discount of 26% applied to your tax return. In New Hampshire, residents enjoy an average ITC of $4,000. December 31st, 2022
New Hampshire Solar Sales Tax Exemption There is no sales tax in New Hampshire, which means that you don’t need to worry about paying additional taxes at the till on your purchase of solar panels. None
New Hampshire Solar Property Tax Exemption Property owners will not have to pay additional property taxes in New Hampshire on the added value to their homes created when they install solar energy systems. None
Net Metering Net metering enables homeowners that produce extra energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners. None
USDA REAP GRANT REAP assists agricultural producers and rural small businesses reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligible participants in the REAP program are agricultural producers, with at least 50 percent of their gross income coming from agricultural operations and small businesses in eligible rural areas. None
Residential Small Renewable Energy Rebate Program This program provides rebates of $200 per kilowatt of solar panel power installed up to $1,000 or 30% of the total cost of your solar energy system. None
Eversource Connected Solutions Energy Storage Rebate If you live in New Hampshire and are a customer of Eversource, you can be compensated for sharing your solar energy storage with the utility during high-demand hours. None
Renewable Energy Certificate (REC) Program The REC program allows residents of New Hampshire to earn and sell credits for the solar power their systems produce. While the REC market is not very active in New Hampshire at the moment, there is a good chance that it will pick up. None
The Commercial & Industrial (C&I) Solar Incentive Program This program offers financial incentives of up to 25% of the total solar project cost or $10,000, whichever is less. The program is only available to commercial structures in New Hampshire with electric meters. None
The Community Development Finance Authority Clean Energy Fund Businesses, towns, and non-profits can use this fund to navigate the energy investment financing process. None

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit (ITC) is a 26% federal tax credit available for purchased home solar systems installed by the end of 2022. In New Hampshire, residents enjoy an average ITC of $4,000. This credit will be applied to any federal income taxes that you owe during the year in which your solar energy system is installed.

New Hampshire Solar Sales Tax Exemption

New Hampshire does not have a sales tax, so there is no need to worry about a sales tax exemption for your solar energy system.

New Hampshire Solar Property Tax Exemption

The New Hampshire solar property tax exemption excludes the added value of a solar installation in New Hampshire from your home’s value for tax purposes.

New Hampshire Net Metering

Net metering is a policy that enables your solar panels to be connected to the public-utility power grid. When surplus power is created by your panels, it will be transferred to the grid. You can offset the cost of power drawn from the electricity grid as a result of net metering. The minimum amount of compensation that you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, this remains massively beneficial for solar owners.

Residential Small Renewable Energy Rebate Program

This program provides rebates of $200 per kilowatt of solar panel power installed up to $1,000 or 30% of the total cost of your solar energy system.

Eversource Connected Solutions Energy Storage Rebate

If you live in New Hampshire and are a customer of Eversource, you can be compensated for sharing your solar energy storage with the utility during high-demand hours.

Renewable Energy Certificate (REC) Program

The REC program allows residents of New Hampshire to earn and sell credits for the solar power their systems produce. Unfortunately, the REC market is not very active in New Hampshire, but there is a good chance that it will pick up.

Commercial New Hampshire Solar Incentives

Solar Incentives for Nonprofits and Businesses in New Hampshire

The Commercial & Industrial (C&I) Solar Incentive Program offers financial incentives of up to 25% of the total solar project cost or $10,000, whichever is less. The program is only available to commercial structures in New Hampshire with electric meters.

The Community Development Finance Authority Clean Energy Fund assists businesses, towns, and non-profits navigate the energy investment financing process.

USDA REAP Grant

The United States Department of Agriculture (USDA) has created a program designed to help spur investments in clean energy called the Rural Energy for America Program (REAP). REAP assists agricultural producers and rural small businesses lower their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems.

Eligible participants in the REAP program are agricultural producers, with at least 50 percent of their gross income coming from agricultural operations and small businesses in eligible rural areas.

Key Takeaways: The Best New Hampshire Solar Incentives

New Hampshire is a great state to invest in residential, commercial, or industrial solar energy systems. With financial assistance from the federal government, the state government, and additional local tax incentives, New Hampshire residents have a wealth of support to draw from when purchasing solar panels. Solar will only become more and more valuable as the cost of other energy sources like oil, gas, and coal grow increasingly expensive in the coming years.

Like other renewable energies, you can feel confident knowing that there is no finite amount of solar energy on the earth. So long as it is sunny, or at least partially sunny, you can expect to reap the rewards of installing solar panels. If you are interested in purchasing, there are many great companies that will help get you set up in New Hampshire.

New Hampshire Solar FAQ

Is solar worth it in New Hampshire?

Yes, you should consider buying a new solar energy system in New Hampshire. Solar can save you tons of money on your utility bills and help reduce your production of emissions and your carbon footprint. As well, a variety of federal, state, and local financial incentives can help to make the purchase of solar panels accessible to anyone.

How much will my electricity bill go down with solar in New Hampshire?

On average, residents of New Hampshire spend $120.01 per month on energy bills, which means that potential savings arising from solar can amount to $1,440 per year. The average payback period is nine years, meaning that you will make back the amount you spent on installation after nine years of usage. You can expect to save as much as $28,409 over the estimated 25-year life of your solar panel system.

How much does it cost for solar panels in New Hampshire?

The average system cost of a 5 kilowatt (kW) solar panel installation in New Hampshire ranges from $14,578 to $19,722. On a cost-per-watt basis, solar panel installation in New Hampshire averages at $3.43. Solar panels have fallen in price in New Hampshire by more than 80% over the past decade.

Can you get solar panels for free in New Hampshire?

While it is unlikely that you can get solar panels for free in New Hampshire, there are numerous federal, state, and local financial incentives that can significantly minimize the costs associated with purchasing a new solar energy system.

What solar rebates are available in New Hampshire?

There are federal solar tax credits, New Hampshire solar rebates, and local financial incentives for purchasers of solar energy systems in the state. These include the Federal Solar Investment Tax Credit (ITC), the New Hampshire Property Tax Exemption, and a number of private or non-government incentive programs.

How many homes in New Hampshire have solar panels?

New Hampshire has enough solar installed to power more than 26,827 homes, and solar accounts for 1.12% of the state’s electricity production.

Do solar panels increase property taxes in New Hampshire?

No, the New Hampshire Solar Property Tax exemption excludes the added value of a solar installation in New Hampshire from your home’s value for tax purposes.

How much can you write off for solar panels on taxes in New Hampshire?

New Hampshire taxpayers can write off many of the costs associated with the purchase of new solar energy systems. For more information about incentive programs, check out this database of state incentives.

House Method’s Solar Companies Rating Methodology

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.

Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.

We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:

  • Plan Options (30): Do they provide a variety of plan options? We looked at the number of plans each solar energy company offered and the flexibility of adjusting the plan.
  • Services offered (20): How many services are offered in each plan? We looked at whether the company manufactures its own solar panels, whether it contracts out installation, and what additional products each company offers.
  • Trust (10): What do customers say after their solar panels are installed? Does this company offer a guarantee? We considered how satisfied customers are post-service if the company does what it says it will, BBB accreditation, and service guarantees.
  • Prices (10): How reasonable are the costs of the plan or service in comparison to the industry average? We compared the costs of each company to competitors that offer the same solar energy services.
  • Unique perks (10): Does the company offer discounts or special services such as financial incentives, rebates, or a useful mobile app? We looked for extras each company offers that set them apart from the competition.
  • Customer Service (10): How is the customer experience when contacting the company? We considered the speed of response, weekend/holiday availability, and ease of communication through phone calls, email, and online chat functions.
  • Nationwide availability (10): How many states does the company offer its services? Companies that operate nationally and in all zip codes are favored over those with limited availability.

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