New Hampshire Solar Programs and Incentives: Complete 2025 Guide
Introduction
The Granite State, New Hampshire, is an increasingly attractive location for homeowners and businesses looking to invest in solar energy. While the state may not boast the year-round sunshine of the Southwest, its commitment to renewable energy, combined with powerful federal incentives, makes 2025 a pivotal year for solar adoption. This comprehensive guide provides a detailed look at all available solar incentives, programs, eligibility requirements, and regulations for New Hampshire residents in 2025, ensuring you have the knowledge to maximize your savings and contribute to a cleaner energy future.
The landscape of solar incentives in New Hampshire is characterized by a strong reliance on federal support and favorable state-level policies regarding property and sales tax, even as state-run rebate programs have concluded. Understanding the interplay between the Federal Solar Investment Tax Credit (ITC), the state’s Net Metering 2.0 policy, and local tax exemptions is crucial for any prospective solar owner [1].
1. Federal Solar Investment Tax Credit (ITC): The Cornerstone Incentive
The single most significant financial incentive for going solar in New Hampshire, and across the United States, is the Federal Solar Investment Tax Credit (ITC). Extended and enhanced by the Inflation Reduction Act (IRA) of 2022, the ITC allows homeowners to deduct a substantial percentage of their solar installation cost from their federal income taxes.
The 30% Residential Tax Credit
For residential solar systems installed and placed in service by December 31, 2025, the ITC remains at a robust 30% of the total system cost. This includes the cost of the solar panels, inverters, mounting hardware, and installation labor.
| Year System Placed in Service | Residential ITC Rate |
|---|---|
| 2022 - 2025 | 30% |
| 2026 | 26% |
| 2027 | 22% |
| 2028 and Beyond | 0% (Expires) |
Crucial 2025 Deadline: Homeowners in New Hampshire must be aware that the 30% rate is scheduled to drop to 26% in 2026 and expire entirely for residential systems after 2027. For those planning to install solar, completing the project before the end of 2025 is the best way to secure the maximum 30% credit [2].
Eligibility and Application Process
The ITC is a non-refundable tax credit, meaning it can reduce your tax liability to zero, but you will not receive a refund for any excess credit. However, you can carry forward any unused credit to future tax years.
- Eligibility: The system must be new or used for the first time, owned by the taxpayer (not leased), and located at a residence in the U.S.
- Application: The credit is claimed when filing your federal income tax return using IRS Form 5695, Residential Energy Credits. You must keep all receipts and documentation related to the system's cost.
Bonus Credits under the Inflation Reduction Act (IRA)
While primarily aimed at commercial and utility-scale projects, the IRA also introduced adders that can increase the ITC for certain projects, including those in low-income communities or those using domestic content. New Hampshire projects may qualify for these bonus credits, particularly those involved in the state's Low-Moderate Income Community Solar Grant Program (discussed below) [3].
2. New Hampshire State-Specific Incentives
New Hampshire's state-level financial incentives are primarily focused on tax relief, as the state's popular rebate program has been discontinued.
State Rebate Programs: Status Update (Closed)
It is essential to address the status of the former state rebate programs, as this is a common point of confusion for new solar shoppers.
- Residential Renewable Electrical Generation Rebate Program: This program, which previously offered a rebate of up to $1,000 for residential solar installations, is permanently closed. The New Hampshire Department of Energy confirmed the program's repeal in 2024 via Senate Bill 303.
- HB 2 (2025) Confirmation: Furthermore, the state budget bill, HB 2 (2025), explicitly closed all remaining rebate programs funded by the Renewable Energy Fund to new projects until further notice.
Key Takeaway: As of 2025, New Hampshire residents should not factor a state-level cash rebate into their solar financial calculations [4].
Property Tax Exemption (Local Option)
New Hampshire state law provides a significant, though locally administered, incentive through the Property Tax Exemption for Renewable Energy Sources (RSA 72:61).
- Mechanism: This statute allows New Hampshire cities and towns to adopt a local option to exempt the value added by a solar energy system from the property's assessed value for tax purposes. This means that while your home's value increases due to the solar installation, your property taxes will not increase as a result of that added value.
- Action Required: Homeowners must confirm if their specific municipality has adopted this exemption. If adopted, the homeowner typically needs to file an application with the local assessor's office to claim the exemption.
- Financial Impact: Given New Hampshire's relatively high property tax rates, this exemption can result in substantial long-term savings, effectively lowering the total cost of ownership for the solar system [5].
Sales Tax Exemption
New Hampshire is one of the few states in the U.S. that does not have a general statewide sales tax.
- Benefit: Because there is no general sales tax, there is no sales tax applied to the purchase and installation of solar equipment. This provides an immediate, albeit indirect, saving compared to residents in states with high sales tax rates.
3. Net Metering and Utility Programs
Net metering is a critical policy that determines how you are compensated for the excess electricity your solar panels generate and send back to the grid. New Hampshire's policy is currently in a state of transition and is known as Net Metering 2.0 or the Alternative Net Metering Tariff.
New Hampshire Net Metering 2.0 (NEM 2.0)
New Hampshire's current net metering framework was established following the passage of HB 1116 in 2016 and subsequent PUC rulings.
- How it Works: Under NEM 2.0, when your solar system produces more electricity than your home consumes, the excess power is exported to the utility grid. The utility credits your account for this exported energy.
- Credit Structure: Unlike older, more favorable net metering policies (NEM 1.0, which grandfathered existing customers through 2040), NEM 2.0 uses a slightly reduced credit rate for exported energy. The credit is based on the utility's "avoided cost" of energy, which is typically lower than the full retail rate you pay for imported electricity.
- Billing: Credits are applied to your next bill to offset future consumption. Any remaining credits are typically carried forward indefinitely, though the specific rules can vary slightly by utility and are subject to ongoing regulatory review [6].
Ongoing Regulatory Review: PUC Dockets DE 22-060 and IR 25-031
The New Hampshire Public Utilities Commission (PUC) is actively reviewing the future of net metering.
- Docket DE 22-060: This docket considered changes to the net metering tariff, resulting in a November 2024 order that signaled a move toward a more complex, potentially less favorable structure for new solar customers.
- Docket IR 25-031: Opened to look at future net metering structures, including "Net Energy Metering 3.0" or similar models. This docket involves the Department of Energy, utilities (Eversource, Unitil, Liberty Utilities), and other stakeholders.
- Impact for 2025: While the final outcome of these dockets is pending, the current NEM 2.0 policy remains in effect. However, prospective solar owners should be aware that the policy is under active consideration and could change for new applicants in the near future. Installing a system now may allow you to be grandfathered into the current NEM 2.0 rules, providing long-term rate certainty [7].
Major Utility Companies and Net Metering
New Hampshire's major electric utilities administer the net metering program for their customers.
| Utility Company | Service Area | Net Metering Contact |
|---|---|---|
| Eversource Energy | Largest service area, including Manchester and Nashua | Customer Service/Renewable Energy Department |
| Unitil | Seacoast and Capital regions | Distributed Generation Services |
| Liberty Utilities | Southern and Central NH | Customer Care Center |
Homeowners must coordinate with their specific utility to apply for interconnection and net metering approval before installing their system.
4. Solar Renewable Energy Credits (SRECs)
New Hampshire operates a Renewable Portfolio Standard (RPS) that creates a market for Solar Renewable Energy Credits (SRECs).
The Renewable Portfolio Standard (RPS)
New Hampshire's RPS mandates that a certain percentage of electricity sold by electric providers must come from renewable energy sources. The goal is to reach 23.8% renewable energy by 2025 [8].
How SRECs Work
- Generation: When your solar system generates 1 megawatt-hour (MWh) of electricity, it also generates one SREC.
- Market: Electric suppliers that fail to meet the state's RPS requirements must purchase SRECs to comply. This creates a market where solar system owners can sell their SRECs to these suppliers for revenue.
- Revenue Stream: SRECs provide an additional, ongoing revenue stream for solar owners, separate from the electricity savings and net metering credits. The price of an SREC fluctuates based on supply and demand in the market, as well as the state's compliance penalty (Alternative Compliance Payment or ACP).
Eligibility and Certification
To participate in the SREC market, your system must be certified by the New Hampshire Department of Energy (DOE) as an eligible renewable energy source.
- Process: The certification process involves submitting an application (often through a third-party SREC aggregator or broker) to the DOE pursuant to PUC 2500 rules. The DOE is required to render a decision within 45 days of receiving a complete application.
- Participation: Most residential solar owners use an SREC aggregator (like SRECTrade or Knollwood Energy) to manage the sale of their credits, as this simplifies the process and ensures they receive the best market price [9].
5. Low-Income and Community Solar Programs
New Hampshire has made strides in ensuring solar energy is accessible to all residents, particularly those in low-to-moderate income (LMI) brackets, through community solar initiatives.
Low-Moderate Income (LMI) Community Solar Grant Program
Established by SB 165 (2019), this program aims to provide the benefits of solar energy to LMI residential electric customers who may not be able to install solar on their own homes due to cost, shading, or renting.
- Mechanism: The program funds the development of community solar photovoltaic projects. A portion of the credits generated by these arrays is allocated directly to LMI customers, resulting in lower monthly electric bills.
- Status in 2025: The program has been slow to launch but is gaining momentum. As of late 2024 and early 2025, the state Department of Energy was actively reviewing proposals from developers for new community solar arrays.
- How to Participate: LMI residents should monitor the NH Department of Energy website and contact their local Community Action Program (CAP) agencies for updates on when and how to subscribe to these community solar projects [10].
Other Low-Income Assistance
While direct solar rebates are closed, LMI residents may qualify for other energy efficiency and electrification programs that can complement a solar installation:
- Home Electrification and Appliance Rebates (HEAR) Program: Funded by the IRA, this program offers rebates for energy-efficient appliances and home electrification projects, which can reduce a home's overall energy consumption, making a solar system more effective. Maximum rebates can reach up to $14,000 for multiple projects [11].
- Weatherization Assistance Program (WAP): This federal program, administered by the state, provides free weatherization services to low-income residents, further reducing the energy load that a solar system needs to cover.
6. Solar Rights, Regulations, and Permitting
Understanding the regulatory environment is just as important as understanding the financial incentives.
Solar Rights and Homeowners' Associations (HOAs)
New Hampshire does not have a comprehensive, statewide "Solar Rights Act" that explicitly prohibits Homeowners' Associations (HOAs) from restricting solar installations.
- Local Control: Unlike some other states, New Hampshire leaves much of the control over aesthetic restrictions to local ordinances and private agreements (like HOA covenants).
- Best Practice: Homeowners in deed-restricted communities or HOAs must carefully review their governing documents and submit any required applications to their association before beginning installation. While HOAs cannot typically ban solar outright, they can impose reasonable restrictions on placement, color, and screening [12].
Permitting and Interconnection
The process of installing solar involves two main regulatory hurdles: local permitting and utility interconnection.
- Local Permitting: You must obtain a building permit from your city or town's building department. This process ensures the system meets local safety and structural codes. Requirements vary, but typically involve submitting engineering plans and site diagrams.
- Utility Interconnection: This is the process of formally connecting your solar system to the electric grid. It is required to participate in net metering.
- Steps: Submit an interconnection application to your utility (Eversource, Unitil, or Liberty). The utility reviews the application to ensure the system will not negatively impact the grid. Once approved, the utility installs the necessary net meter.
- Timing: The interconnection process can take several weeks, so it is crucial to submit the application early in the project timeline.
7. Solar Financing Options
While the incentives significantly reduce the net cost of solar, most New Hampshire homeowners still require financing.
Common Financing Methods
- Cash Purchase: Offers the highest return on investment (ROI) and allows the owner to claim the full 30% Federal ITC and all SREC revenue.
- Solar Loan: A popular option, often a secured loan (like a home equity loan or HELOC) or an unsecured personal loan. Payments are fixed, and the homeowner still owns the system, qualifying for the ITC and SRECs.
- Power Purchase Agreement (PPA) or Lease: In a PPA or lease, a third-party company owns the system installed on your roof. You pay them a fixed monthly fee (lease) or a fixed rate per kWh of electricity generated (PPA).
- Trade-off: While these options require no upfront cost, the homeowner does not own the system and therefore cannot claim the Federal ITC or the SREC revenue. These benefits are claimed by the third-party owner, who passes some of the savings on to the homeowner through lower electricity rates.
New Hampshire-Specific Loan Programs
While New Hampshire does not have a statewide Property Assessed Clean Energy (PACE) program for residential properties, some local credit unions and banks offer specialized "green" or "energy efficiency" loans with favorable terms for solar installations. Prospective buyers should consult with local financial institutions [13].
8. Maximizing Your Solar Investment in New Hampshire
To ensure your solar project is as financially successful as possible in 2025, follow these strategic tips:
- Act Before the ITC Step-Down: The most critical step is to complete your installation before the end of 2025 to lock in the 30% Federal ITC.
- Confirm Local Property Tax Exemption: Contact your local municipal assessor's office to confirm if your town has adopted the RSA 72:61 property tax exemption and understand the application process.
- Optimize System Size for NEM 2.0: Given the slightly reduced compensation rate under NEM 2.0, it is often most financially advantageous to size your system to cover 100% of your annual electricity usage, rather than significantly over-producing.
- Enroll in the SREC Program: Ensure your installer or a reputable SREC aggregator handles the certification process with the NH Department of Energy so you can begin generating and selling SRECs immediately.
- Get Multiple Quotes: Solar costs can vary widely. Obtain at least three quotes from certified, local New Hampshire installers to ensure you are getting the best price and quality equipment.
9. Contact Information and Resources
For the most current information on New Hampshire's energy policies and programs, consult the following official sources:
| Resource | Description | Contact Information |
|---|---|---|
| NH Department of Energy (DOE) | State agency overseeing energy policy, RPS, and former rebate programs. | https://www.energy.nh.gov/ |
| NH Public Utilities Commission (PUC) | Regulates utilities and sets net metering tariffs. | https://www.puc.nh.gov/ |
| Eversource Energy | Major electric utility. | 1-800-662-7764 |
| Unitil | Electric and gas utility. | 1-888-301-7700 |
| Liberty Utilities | Electric and gas utility. | 1-800-833-4200 |
| DSIRE (Database of State Incentives for Renewables & Efficiency) | Comprehensive national database of incentives. | https://programs.dsireusa.org/ |
Conclusion
New Hampshire's solar market in 2025 is defined by stability in its tax-based incentives and a critical window of opportunity to capture the maximum Federal ITC. While the state-level rebate is a thing of the past, the combination of the 30% federal tax credit, the local property tax exemption, and the ongoing revenue from SRECs still makes solar a highly compelling investment. By carefully navigating the NEM 2.0 policy and staying informed about the PUC's regulatory dockets, New Hampshire residents can successfully transition to clean, self-generated power, securing energy independence and significant financial returns for decades to come.
References
[1] New Hampshire Department of Energy. Renewable Energy Rebates. https://www.energy.nh.gov/renewable-energy/renewable-energy-rebates [2] SEIA. Solar Investment Tax Credit (ITC). https://seia.org/solar-investment-tax-credit/ [3] Intuit TurboTax. Federal Tax Credit for Residential Solar Energy. https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D [4] vtstarsolar.com. New Hampshire Solar Incentives 2025 Guide. https://vtstarsolar.com/new-hampshire-solar-in-2025-a-homeowner-and-business-guide/ [5] Citizens Count. Residential Solar Power | NH Issue Brief. https://www.citizenscount.org/issues/residential-solar-power [6] SolarReviews. Guide To Net Metering In New Hampshire For 2025. https://www.solarreviews.com/blog/new-hampshire-net-metering [7] NH Public Utilities Commission. Docket IR 25-031. https://www.puc.nh.gov/VirtualFileRoom/Docket.aspx?DocketNumber=IR%2025-031 [8] SREC Markets. New Hampshire - SREC Markets. https://www.srectrade.com/markets/rps/srec/new_hampshire [9] Knollwood Energy. New Hampshire (NH) SREC Program. https://www.knollwoodenergy.com/srec-markets/nh-rec-program/ [10] NH Department of Energy. Low-Moderate Income Solar Grant Program. https://www.energy.nh.gov/renewable-energy/renewable-energy-rebates/low-moderate-income-solar-grant-program [11] NH Department of Energy. Home Electrification and Appliance Rebates Program. https://www.energy.nh.gov/funding-opportunities/funding-opportunities-homeowners/home-electrification-and-appliance-rebates [12] DSIRE. New Hampshire Community Solar Rules. https://programs.dsireusa.org/system/program/detail/22460/new-hampshire-community-solar-rules [13] Keene, NH Government. Solar Financing and Incentives. https://keenenh.gov/community-development/solar-financing-and-incentives/