New Hampshire Solar Rebates and Incentives
New Hampshire Energy Profile
New Hampshire has a total energy consumption per capita quota of 429 million btu. The energy consumption for residential and commercial sectors is 73.5 and 47.7 million Btu, respectively.
| New Hampshire Solar Incentives | State or Federal | Program Overview |
| Net Metering | State | New Hampshire residents can exchange excess energy for electricity credits from energy companies. |
| Property Tax Exemption | State | Properties with solar installations will not attract an increase or decrease in tax assessment despite the value added to the property. |
| Residential Renewable Electrical Generation Rebate Program | State | Solar owners can get a $200 solar rebate per kilowatt of solar installation with a $1,000 cap or 30% of the solar purchase price. |
| Federal Solar Tax Credit | Federal | Eligible homeowners can receive up to 30% of the solar cost in tax credit. |
| New Hampshire Low Income EnergyAssistance Program (LIHEAP) | State | A state program offering solar loans or leases coupled with financial support for residents who can’t afford solar costs |
Federal Solar Tax Credit in New Hampshire
The Federal Solar Tax Credit offers the most significant incentive for solar installations in New Hampshire. It started in 20005, offering up to 30% off on solar costs, and was slated to sunset by 2024.
However, the Inflation Reduction Act (IRA), which was signed in August 2022, extended the federal tax credit and increased the incentive value. The IRA also changed the Investment Tax Credit to be called Residential Clean Energy Credit. The program has lower-tier incentives for coming years, with 2022 offering 26% and 2023 offering 22% in the initial plan.
Through the IRA’s extension, the program offers incentives as follows
- 30% credit for solar installations between 2022 to 2032
- 26% for solar installations in 2033
- 22% for solar installations in 2034
The federal solar tax credit is slated to end in 2035. It is not a rebate but a New Hampshire tax credit for solar panels. It means that the incentive will amount to 30% of your solar cost, about $5,675 for an average 6.5 kilowatts solar system. The incentive will be credited to the income tax of homeowners for the year the solar energy system is installed.
The Federal Solar Tax Credit incentive will start including battery systems from January 1, 2023, and will pay for costs including:
- Installation costs
- Inspection and permission fees, among other added costs
- Sales tax
- Solar inverters, panels, and product installation equipment cost
- Energy storage components like batteries.
Eligibility
The requirements to qualify for the Federal Solar Tax Credit are simple, and they are as follows.
- Qualified beneficiaries of the incentive must own the home or property. It means possession must not be by lease or rent.
- Qualified beneficiaries must have paid enough federal taxes for the Residential Clean Energy Credit to be able to cover their tax liability.
- The solar installation must be done between the 1st of January, 2017, and the 31st of December, 2034.
- The solar components must be installed and located at a property the beneficiary owns in the United States of America.
- The Solar components must be new or be put to use for the first time.
After satisfying the above requirements, one of these two must be met to enjoy this incentive.
- The solar energy system must be purchased with upfront cash and not through an agreement or a lease.
- Qualified beneficiaries must have a paid interest in a community solar venture which is not linked to their residential property, where the generated electricity isn't more than the property’s energy consumption and is credited against it.
How do I claim the Federal Solar Tax Credit in New Hampshire?
Eligible residents can claim the Federal Solar Tax Credit in New Hampshire by following several quick steps.
Step 1. Determine your eligibility
The first step is to determine if you are eligible for the incentive. You should review and confirm your property ownership and ensure your tax liability is up to date.
Step 2. Get the required documents
Claiming the New Hampshire solar tax credit involves applying for it using the relevant document. Check the IRS website for the form you will need to make your application.
Step 3. Download and fill out the IRS Form 5695
The IRS Form 5695 is the relevant form to make your application for the federal solar tax credit. The form will require information like your address and the contact information of your solar supplier or installation company.
Net Energy Metering in New Hampshire
Net Metering is a program that offers retail rate energy credit to homeowners that send energy to the grid. NEM is a program that offers to reward solar owners who produce more energy than their residential requirements.
It is a billing policy put in place by the New Hampshire Public Utilities Commission (PUC). It is available with the major energy companies in New Hampshire, including; Liberty Utilities, New Hampshire Electric Cooperative, Unitil, and Eversource.
This policy gives energy credit to residents that send their excess energy to the grid, where energy companies redistribute it to areas in need.
Energy credits are valid for paying retail electricity bills in New Hampshire.
The energy credit rate residents receive will depend on the energy company they're subscribed to. Eversource has no limit on the length of time for rolling over energy credits, and the company offers a high kilowatts cap of energy residents can roll over monthly, which is 600 kilowatt-hours. Net Metering 2.0 became active in New Hampshire recently with slight changes from the NEM 1.0 program.
The requirements to qualify for New Hampshire Net Metering include being subscribed to any of the four energy companies mentioned above and having a solar system that generates more energy than you can use.
How to Enroll for Net Energy Metering in New Hampshire
Enrolling in the Net Metering program can be done with several quick steps.
- Use an experienced and reliable New Hampshire solar installer in your area. When selecting your solar installer, confirm from the staff you transact with that the net metering enrolment process will be completed on your behalf.
- After installation, check your energy bills to monitor and ensure that the energy credits are coming in monthly. In a case where you don't receive the energy credits, check with your solar installer to confirm that the net energy metering application was finalized.
New Hampshire Property Tax Exemption
New Hampshire offers a tax exemption program for residential solar installations. State laws allow local governments and cities to apply and adopt the tax exemption policy.
As of 2023, it is applicable in 135 cities and towns in New Hampshire for solar arrays or energy system installations. The precise amount that this renewable energy incentive in New Hampshire saves residents will depend on the value of the installed solar system and the residents' local tax rate.
With an average system value of $18,915 and a state property tax rate of 1.77%, this solar energy incentive will save residents about $344 annually. As solar energy systems usually last around 20 years and more, the savings from this solar energy incentive will amount to about $6,680.
To claim this solar energy incentive:
- Residents must first check that their local community has applied to offer the solar property tax exemption. The tax exemption can only be claimed in cities and towns where it has been adopted.
- Ensure that your home qualifies for the incentive before you contact your local authorities. The local authorities will include the energy division in your local government or the one closest to your local jurisdiction. You can also make inquiries from your solar installer as they understand local solar incentives more than others.
- Contact your local jurisdiction and get the Permanent Application for Property Tax Credits/Exemptions. Fill out the form and file it at your local jurisdiction.
New Hampshire Property-Assessed Clean Energy (PACE) Financing
Property-Assessed Clean Energy (PACE) financing is a New Hampshire renewable energy rebate that offers low-interest and low down payment loans to disadvantaged households for solar installations. This solar incentive was coined C-PACE and it became law in 2015.
As of 2023, the PACE financing program in New Hampshire is only available for commercial buildings. Commercial buildings that aim to qualify for this New Hampshire renewable energy rebate must be privately owned in jurisdictions where RSA 53-F has been adopted and is applicable.
It includes nonprofit and for-profit commercial entities, agricultural buildings, and multi-family buildings with over five units. New Hampshire's C-PACE program is different from other states in the country because it has a limitation of lack of funding.
