New Hampshire Solar Incentive Programs

10 yr
Avg. payback
$1,150/yr
Avg. annual savings
None
State tax credit
~75% of retail
Net metering rate
Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed

What New Hampshire Offers Solar Owners

NH's strongest incentive is structural: high electricity prices and a solid net metering program combine to make paybacks competitive.

Net Energy Metering 2.0

~75% retail

NEM 2.0 credits small customers (under 100 kW) at 100% of default service + 100% of transmission + 25% of distribution. With Eversource at 25¢+/kWh, exports earn approximately 19 to 20¢/kWh. Program guaranteed through December 31, 2040.

No State Sales Tax

$0 tax

New Hampshire levies no general sales tax. Solar panels, inverters, racking, and installation labor, all purchased entirely tax-free. On a $22,000 system, this saves $990 to $1,540 vs. states with 4.5 to 7% sales tax.

Property Tax Exemption

Varies

RSA 72:62 authorizes municipalities to exempt solar equipment assessed value from property taxes. Optional, each city or town must adopt by vote. Many NH towns have adopted it; check with your local assessor before assuming it applies.

State Solar Tax Credit

None

NH has no income tax on wages (the Interest & Dividends tax was eliminated January 1, 2025). No income tax means no income-based solar credit is possible.

Federal ITC (Section 25D)

Expired

The 30% Residential Clean Energy Credit expired December 31, 2025. Applies equally to all states. No federal credit for residential installs in 2026.

HB1002 (2026): Exemption Saved

Defeated

A 2026 bill to repeal the RSA 72:62 solar property tax exemption died in the House on February 12, 2026 (187 to 157 vote to table). The exemption remains intact for towns that have adopted it.

NEM 2.0: How Your Export Credit Is Calculated

The credit is component-based, not a simple flat rate. Here's exactly what you receive for each kWh sent to the grid (NHPUC Order 27074, Docket 22-060).

Default Service (Supply)
100% Credited
The commodity energy cost. August 2026: 14.009¢/kWh. Changes every 6 months (February 1 and August 1). Community power customers receive their supplier's rate instead.
Transmission Charge
100% Credited
The FERC-regulated charge for moving power on high-voltage lines. Approximately 3 to 4¢/kWh for NH customers. Full credit for small generators.
Distribution Charge
25% Credited
The local delivery charge for poles and wires. Approximately 8 to 9¢/kWh. Small generators receive 25%, roughly 2¢/kWh, reflecting a "non-bypassable" utility cost share.
Estimated Total Export Credit
~19 to 20¢/kWh
Based on August 2026 rates. Approximately 75% of full retail. Surplus credits carry forward on your account; Eversource customers can request payment once per year, after the March billing cycle, when the balance exceeds $100.
Rate changes twice yearly Eversource NH's default service rate resets February 1 and August 1 each year. Your NEM credit changes accordingly. The August 2026 supply rate jumped from 11.303¢ to 14.009¢, a 23.9% increase, which also raised the NEM credit. Budget assuming the rate will fluctuate.

NH Utilities and Solar Programs

All four NH distribution utilities offer net metering. Your utility determines the specific interconnection process and fees.

Eversource New Hampshire (PSNH)
~70% of NH electric customers
~75%
Export credit vs. retail
(~19 to 20¢/kWh, Aug 2026)
~25¢+
Total residential rate
+ $19.81/mo customer charge
14.009¢
Default service (Aug 2026)
↑ from 11.303¢ (Feb-Jul 2026)
$200
Interconnection fee (≤25 kW)
$500 for 25 to 100 kW systems
Community Power Option Many NH municipalities offer Community Power (aggregated electricity purchasing) at competitive rates. Community Power customers still use Eversource for delivery but get their supply from the town's power pool. If enrolled, your NEM credit for the supply component will reflect your Community Power supplier's rate, not Eversource's default. Check your municipality's Community Power administrator.
Unitil Energy Systems
Northern NH, Concord Area, Upper Merrimack Valley

Unitil follows the same NHPUC-mandated NEM 2.0 structure as Eversource. Export credits calculated at 100% default service + 100% transmission + 25% distribution. Interconnection fees: $200 for ≤25 kW, $500 for 25 to 100 kW (effective January 1, 2025). Verify current Unitil supply rates before projecting, they differ from Eversource's rates.

Liberty Utilities and New Hampshire Electric Cooperative
Rural NH, North Country and Western Regions

Liberty Utilities and the New Hampshire Electric Co-op also operate under NHPUC NEM 2.0 framework. The NHEC is a rural cooperative serving about 83,000 members. Both follow the same 100% default service + 100% transmission + 25% distribution credit structure. Ask your utility for their current supply rate to calculate your specific export credit.

Payback Analysis: NH Economics Work in 2026

High electricity rates drive favorable paybacks even without the federal ITC.

8 kW System, Eversource Customer (Southern NH)
System size8 kW DC
Installed cost (no ITC)~$24,800
NH peak sun hours (avg.)4.2 hrs/day
Annual production (est.)~12,264 kWh
Self-consumed (60%)7,358 kWh @ 25¢ = $1,840
Exported (40%)4,906 kWh @ 19¢ = $932
Interconnection fee (one-time)-$200
Net Year 1 benefit~$2,572
~10 years
Simple payback (no ITC)

If electricity rates continue rising (NH rates jumped 23.9% in August 2026 alone), actual payback could be shorter. Northern NH locations have fewer sun hours; adjust accordingly.

Rate Sensitivity: Why NH Works Even Without ITC
At 20¢/kWh total retail~13 yr payback
At 23¢/kWh (pre-Aug 2026)~11 yr payback
At 25¢/kWh (current, Aug 2026)~10 yr payback
At 28¢/kWh (next rate cycle)~8.5 yr payback
NH's high rates are the best incentive Every cent the electric rate rises cuts payback. With NH rates hitting 25¢+ and NEM credits at ~75% of retail, NH outperforms lower-rate states even when those states still have the ITC.

Property Tax Exemption: What to Know

RSA 72:62 is an option for towns, not a guarantee. Verify before assuming you're covered.

What the Exemption Covers

Varies by Town

Towns that have adopted RSA 72:62 may exempt the full assessed value of qualifying solar equipment from real property tax. Some towns set a dollar cap (e.g., $15,000 to $25,000); others exempt the full assessed value. The exemption runs as long as the equipment is in place and the town retains the ordinance.

How to Verify Your Town's Status

Check First

Contact your town's Assessing Office or Board of Selectmen before installation. Ask: (1) Has the town adopted RSA 72:62? (2) What is the exemption amount or formula? (3) Do you need to apply after installation? Don't rely on neighbor experience, neighboring towns can have completely different policies.

NH Incentive Summary

Program Status Value / Terms Authority
Net Energy Metering 2.0 Active ~75% of retail for exports (<100 kW). Guaranteed through Dec 31, 2040. NHPUC Order 27074, Docket 22-060
State Sales Tax None NH has no general sales tax. Solar equipment is 100% tax-free. NH DRA (no sales tax state)
Property Tax Exemption (RSA 72:62) Available Optional by municipality. Amount varies. Check with your town assessor. RSA 72:62; locally adopted
Eversource Interconnection Fee Defined Eversource states there is no application fee; confirm any fee with your utility. NHPUC Order 27074
State Income Tax Credit N/A No income tax on wages, no credit possible. NH DRA
State Cash Rebate None No statewide solar rebate program currently active. NH OEP
Federal ITC (Section 25D) Expired Expired December 31, 2025 for residential systems. IRS / 26 U.S.C. § 25D

Getting the Most from NH Solar

Lock In NEM 2.0 Now

  • NEM 2.0 is guaranteed through 2040, but new program terms could apply to new customers if NHPUC reopens the proceeding
  • Customers who interconnect lock in their NEM 2.0 status (no grandfathering risk until 2040)
  • The NHPUC committed to "further review", rates could shift for future applicants
  • Interconnecting sooner is lower regulatory risk than waiting

Confirm Community Power Status

  • If your municipality is enrolled in Community Power, your supply rate (and NEM export credit) may differ from Eversource's default
  • Ask your Community Power administrator what rate applies to NEM customers and whether it changes on the same schedule as Eversource's
  • Some Community Power rates are lower, some higher, this affects your export credit calculation

Verify Town Property Tax Exemption

  • Contact the Assessing Office before installation, not every NH town has adopted RSA 72:62
  • If your town hasn't adopted it, you may be able to petition the Board of Selectmen or bring it to Town Meeting
  • Towns that have adopted it may require a separate application after installation, don't miss the filing deadline

Size for Near-Full Offset

  • At ~75% of retail for exports, NH is favorable enough that moderate oversizing still makes economic sense
  • Unlike states with 2 to 3¢ export rates, sizing for 110% of annual consumption is rational in NH
  • Avoid extreme oversizing, surplus credits can be paid out only once a year and only above $100
  • Confirm the exact rollover policy with your utility before over-sizing

Sources

Get quotes from New Hampshire solar installers

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