Reduce Cost of Solar Panels in New Hampshire: Solar Incentives Tax Rebates

Georgette Kilgore headshot, wearing 8 Billion Trees shirt with forest in the background.Written by Georgette Kilgore

Solar Panels | March 15, 2024

Woman standing on a solar panel with cash in hand from New Hampshire solar incentives that show how to reduce cost of solar panels in New Hampshire using solar tax credits, renewable energy rebates, net metering programs.

Did you know that the cost of solar panels in New Hampshire has gone down as a result of tax rebates and other New Hampshire solar incentives.10

The residents of New Hampshire are the 2nd highest consumers of electricity in the U.S. and in recent years, electricity rates in the state have spiked dramatically.

Fortunately, even during these times of inflation, solar remains a strong and secure investment and the best way to maintain low energy costs or completely disconnect from the energy grid.

Anyone who seizes the opportunity to go solar in this state is eligible for several tax rebates and other solar incentives.

This guide explains how New Hampshire solar incentives work to lower the cost of solar panels in New Hampshire both immediately and in the long term.

New Hampshire Solar: Peak Sun Hours NH

There’s no doubt that New Hampshire is a cold state.

Solar panels may not seem like a good idea especially when some of the state’s famous winter storms are raging.

Map of the state of New Hampshire with each county colored to show the daily peak sun hours in each New Hampshire county ranging from 3.71 to 4 daily hours of sunlight.

However, it may surprise you to know that the state receives quite an incredible amount of sunlight each year.

To put it in context, New Hampshire experiences 33% more sunshine than Germany, a nation which is one of the world leaders in solar energy adaptation.1

Even though New Hampshire has a cold climate, this does not affect the productivity of solar panels. Moreover, in some cases, cold is actually good for the functioning of solar panels.

Different types of solar panels can adjust to the cold climate. Even though you may experience power loss in the times when solar panels are covered with snow, the brisk but sunny spring and fall will make solar panels produce a disproportionately high amount of energy to make up for the loss.

Residents of New Hampshire have several options when going solar. The most popular option is a grid-tied solar electric system.11

‘Grid-tied’ means that you will connect the system to a public utility grid that provides a reliable backup power for when solar energy is insufficient, for example on cloudy days or at night.

Even so they must determine the best angle for solar panels to get the maximum benefit.

Additionally, the grid-tied system also sells the excess power it produces to the grid. This means that during sunny days when your system produces more power than you need, you’ll supply the power to the public grid powering your neighbors’ houses.

In return, you will earn credits which can be used against future grid power consumption.

If you get a reliable solar provider, you should have a system designed to meet close to 100% of your home’s needs annually. In the summer, you produce more power than you need earning credits for winter where you produce less power than you need therefore consuming the solar credits.

At the end of the year you should have close to zero credits in the solar bank and this situation is called ‘net zero.’ It’s important to note that ‘net zero’ is not ‘off-grid’ which means you are not connected to the utility grid at all.

Cost of Solar Panels in New Hampshire: How Much Are Solar Panels in New Hampshire?

The average price of solar panels in New Hampshire is $2.91 per watt. This price is more than the national average which is $2.66 per watt.

Most residents in this state usually need a 6.5-kW system to offset the cost of electricity entirely.

With this knowledge, how much are solar panels in New Hampshire? A standard system costs around $18,915 to build and if you factor in the federal tax credit then it goes down to $13,240.

This price does not include other New Hampshire solar incentives.

New Hampshire residents pay a lower total cost than the national average because they need a smaller system size than in most states.2 The residents of this state do not use much energy.

Conversely, New Hampshire has some of the highest electricity rates in the country at $21.17 cents per kilowatt-hour. To put it in context, the national average is about $14.7 cents per kilowatt-hour.

This means that in New Hampshire going solar is a worthwhile investment.

Solar Panel Cost Calculator New Hampshire

If you are looking to go solar and you want to estimate the cost of the solar array you need, the most important consideration is the size of the solar system. This size is determined by your monthly energy needs.

For every kilowatt you add to your system, the total costs can go up by nearly $3,000. This is why the size of the system is the most significant cost factor.

If you’re looking for a solar panel cost calculator New Hampshire; the table below shows the standard system sizes in the state together with the prices before and after applying the federal tax credit.

Graphics of cost of solar panels in New Hampshire showing a cutout map of New Hampshire on the right and a bar graph with electricity capacity on the x-axis and price on the y-axis.

Solar System Size Price Price after federal tax credit
10 kW $29,100 $20,370
9 kW $26,190 $18,335
8 kW $23,280 $16,300
7 kW $20,370 $14,260
6 kW $17,460 $12,220
5 kW $14,550 $10,190
4 kW $11,640 $8,150

Factors That Determine the Cost of Solar Panels in New Hampshire

If you are a homeowner, you’ll want to know the cost of solar panel systems before delving into the process of looking for a provider. Unfortunately, it’s hard to determine what the total cost will be without assessing the property, especially if you are living in New Hampshire.

However, prices usually range from $8,620 to $21,540.

Factors that determine the cost of solar panels in New Hampshire include:

Solar Equipment

When it comes to pricing solar energy, the biggest cost factor is solar equipment. The brand along with any other add-on products you get can have huge effects on the total price.3

First, you must know that New Hampshire gets around 198 sun days per year. The national average is 205 days.12

However, this should not deter you because 198 days of sun is enough power to offset electricity in your household. You won’t even need high-efficiency and costly panels.

Experts recommend getting high efficiency panels for states with less sunny days to make the most of the limited solar energy. This raises the overall cost of the system.

Fortunately, New Hampshire residents can get away with regular solar panels.

On the other hand, the prices of equipment are higher than average in New Hampshire because you will also need solar batteries. The heavy snowfall and other extreme weather conditions in the state cause a lot of power outages.

Therefore, having solar batteries can keep your power working through the outages.

A solar battery is an add-on product which costs tens of thousands of dollars. Even though it’s convenient to choose them, the total price of your solar system will go up exponentially.

NH Solar Financing

The method you choose to finance your solar panel also affects the total cost. If you want to own your solar system you have two purchasing options: solar loan and cash purchase.

Solar panel system installed on the roof of a house partially covered with snow.

(Image: U.S. Department of Energy21)

If you choose to buy with cash, you will have to give a large up-front payment. When all is said and done, you won’t have to pay potentially thousands of dollars in additional interest.

Even so, many homeowners cannot come up with the large capital needed to build a solar system therefore they choose the accessibility and convenience of a solar loan.

Even though the government of New Hampshire encourages its residents to go solar, there are only few statewide financing options available for solar arrays. The state government offers Property Assessed Clean Energy (PACE) financing but it is only available to commercial customers.4,13

NH Solar Installation Company

You should be careful with the company you choose to install your solar system as it will affect the quality of the system, pricing, and your experience with solar energy. Each company has its own labor rates and can discount or upcharge equipment.

In most cases, these two factors, labor and pricing, vary only slightly from company to company. However, the brand and type of equipment that each company provides have more significant differences, sometimes up to thousands of dollars.

Brands are divided into different tiers and this varies per company. As such, you need to assess companies based on both cost and value.

Additional Consideration and Costs NH (Cost of Solar Panels in New Hampshire)

You should consider the following additional considerations and costs NH before installing a solar panel system in your home.

  • Permits: In NH, before installing a solar panel system you are required to have building permits before any work begins. Most installers handle the permitting process but you should check first before going any further.
  • Licenses: New Hampshire requires a person holding a master electrician license to oversee or complete solar installations. This license is very important if you want a safe and long lasting installation so make sure that the installer can provide it.
  • Warranties: Warranties for solar panel systems protect your property and your investment. Additionally, they ensure that the panels installed work as intended.
    Ensure you comprehend the warranties provided by your installer. Keep in mind that a more comprehensive and longer-lasting coverage has more benefits.
  • HOAs: NH does not have statewide laws on solar rights. This means that individual jurisdictions have their own set laws.
    Check with your city or town to see if you need to get permission from your homeowners’ association before installing solar panels.
  • Environmental zoning: NH is pro-solar. Therefore, the zoning laws should not give you any issues when you want to install a rooftop solar system.

Free Solar Panels New Hampshire and How To Mitigate Cost of Solar Panels NH

Free solar panels New Hampshire refer to solar systems provided to businesses and homeowners at no cost.

These are usually not completely free, and there is no ownership of the system.

The goal is that the solar panel system will produce electricity to the business or household which will reduce the electricity amount that needs to be bought from the local utility company.

This increases the amount of renewable energy the state has available.

Pie chart showing New Hampshire renewable energy consumption including New Hampshire wind energy, biomass energy, geothermal energy, hydroelectric energy, and solar energy in the state of New Hampshire for 2022.

Additionally, the utility company will buy the excess electricity produced by the solar system, and offset the cost of solar panels in New Hampshire in the long run.

You can obtain free solar panels in New Hampshire in a few different ways. They include:

  • Power Purchase Agreement (PPA):14 With a Power Purchase Agreement, the solar company installs and maintains the system on a business or home. The home or business owner then buys the electricity generated from the solar panels at a much lower rate compared to what they pay for electricity generated from their local utility company.
  • Solar lease: In this case, the solar company installs and maintains the solar panels in the home or in commercial solar panel installation.9 You will then provide a monthly lease payment for the rights to use the solar panels.
    This lease payment is usually lower than the cost of getting electricity from a utility company.
  • Solar rebates program: If you are a resident in New Hampshire, there are several solar rebate programs that you can choose from. The state government runs these programs and the goal is to encourage businesses and homeowners to install solar panels.
    The programs offer rebates for a portion of the solar panel cost, which reduces the cost of solar energy significantly, but they will not provide free solar panels.

All the methods listed above, of obtaining free solar panels have their own pros and cons. Nevertheless, they share one common benefit, they allow you to take advantage of the benefits of solar energy without having to pay the full installation cost of solar panel systems.

If you want to mitigate the cost of solar panels in New Hampshire, then the three processes listed above are the best way to start.

What Is a Solar Panel Rebate and Solar Incentive?

Before learning about New Hampshire solar incentives, you must first know what is a solar panel rebate and solar incentives?15 Local, state, and federal governments offer financial incentives to electricity consumers to install solar systems or switch to other renewable energy sources.

The government implements these financial policies to promote reduction of carbon emission, job creation and energy independence.

Screenshot of New Hampshire Department of Energy website for renewable energy with yellow arrow on renewable energy rebates.

(Image: New Hampshire Department of Energy22)

Several incentives are available depending on your location. Federal incentives apply anywhere in the nation while local and state governments have provided a wide range of incentives for residents under their jurisdictions.

Moreover, local utilities and other businesses in the energy industry across the nation also provide their own incentives to their customers to encourage solar system installation.

These incentives come in the form of:

  • A tax break that you can apply for during your annual tax filing
  • A rebate that you file after installing the solar panel system
  • A discount on the system

Depending on what’s available, these tax breaks, rebates and incentives usually add up and can help offset 30% to 50% of the cost of the solar system. Examples of solar rebates and incentives are:

  • Federal solar incentives
  • State and local solar incentives such as cash rebates and state tax credits
  • Utility solar incentives such as net energy metering

New Hampshire Solar Incentives: New Hampshire Solar Rebates, Renewable Energy Rebate

If you live in New Hampshire, you should know that the average cost of converting to solar energy is $18,915. This means that the solar equipment cost goes for around $2.91 per watt and you will need a solar array which produces around 6.5 kilowatts and above.5

Even though this total cost is $5,500 below the national average, it’s still very expensive for you to justify. Luckily, the state government and local utilities offer several solar perks that bring down the average cost of converting to solar in NH.

New Hampshire solar rebates and other NH solar incentives reduce the cost of installing solar by thousands of dollars. Therefore, you can now afford installing solar in your home if you are a resident.

The Renewable Portfolio Standard for the state that accounts for clean energy sources requires 25.2% of all electricity in New Hampshire to be generated from renewable energy sources which include solar energy.6 This is why NH has more solar benefit programs than other states because they want to encourage people to adopt solar and other renewable energy resources by making them more affordable.

Screenshot from New Hampshire Department of Energy website for renewable energy with yellow arrow Net Metering and Group Net Metering.

(Image: New Hampshire Department of Energy23)

The table below shows a quick list of the solar incentives currently available to residents of New Hampshire together with how much you can save from them.

Solar Programs in NH Type of Benefit Description Amount You Can Receive Occurrence
Net Metering Local Here, you can earn credits for when your solar panel system produces excess energy which will then help pay down for future bills The amount varies based on the local utility company, size of the system, your energy bills and many more factors This process is ongoing. As long as your system keeps producing excess energy, net metering credits can accrue indefinitely
Property tax exemption for renewable energy and electrical energy storage local It exempts your home from getting additional tax due to the value added as a result of installing solar panels This amount varies based on the value and size of the system Ongoing: You can enjoy this perk every year when you get assessed for your property tax as long as the system remains on your roof
Rebate program for residential renewable electrical generation State It provides rebates for solar equipment on a basis of per-kilowatt $1000 on average in NH This is offered only once. You get approved for any available rebate funds after you pay for your solar project
Federal Solar Investment Tax Credit (ITC) Federal It gives you a credit on your income tax burden for 30% of the total cost of installation of your solar panel system. You can carry the credit over for up to 5 years In NH, You can save up to $5,675 on average This is a one-time offer. You can only apply it once when filing taxes after installation.
However, you can roll over the unused credit for five years
Local benefits programs Local Various local governments and private companies provide rebates and other perks that make converting to solar more appealing and affordable The amount varies based on the system size, equipment cost, type of program, the organization giving the incentive and many more factors Varies based on the specific incentive

Government Solar Program: Federal Solar Tax Credit

The national government solar program initially offered the federal solar tax credit from 2005 to 2024. The credit was supposed to offset 30% of the cost of initial solar installation though it was supposed to reduce to 22% in 2023.

The government signed the Inflation Reducing Act (IRA) in 2022 which extended this credit to another decade and maintained the 30% cutoff. If you made a solar installation prior to August 2022, you were retroactively included in the Act.

The new federal tax credits rates are:

  • 30% between 2022 and 2032
  • 26% in 2033
  • 22% in 2034

The credit will stop in 2035 unless the government renews it again. It’s important to note that the federal credit is not a rebate, rather it’s a tax credit offered for 30% of your installation costs.7

Since the average solar system in NH is 6.5 kW, this means that you will be able to recover $5,675 which will be credited to your income tax liability. This credit is viable for the year you installed your solar panel system.

Map showing locations of solar plants in New Hampshire using yellow markers and New Hampshire solar panels with a US cut out showing the location of the state of New Hampshire.

Additionally, if you cannot take full credit because you do not owe enough money on your taxes, you can carry the credit forward to the next year for up to five years.

New Hampshire Solar Incentives: How To Claim the Federal Tax Credit in NH

The next step is to know how to claim the federal tax credit in NH. This is a very simple process that takes a small amount of time but has a massive payout.

Take the steps below to make sure you acquire the full credit value.

  • Step 1: Download and print out the IRS Form 5695.16 This is the form used to file for clean energy credits.
    You can choose to fill this form either in advance or when it’s time to file your taxes
  • Step 2: Fill out the form with all the information about your solar panel system, your installation address and contact information of the installation company
  • Step 3: File your IRS forms together with your taxes or have your accountant fill and file the forms for you

Alternatively, when you are using software like Turbo Tax for your tax filing, you can follow the prompts that are displayed on the screen for solar installations and energy efficiency home improvements.

You should know that the federal credit is the best solar incentive available anywhere in the US. It gives out the best return on your time investment.

If you have the information at hand, you will spend less than five minutes filling out the IRS paperwork for this program. Though you put in very minimal effort, you can save over $5,600.

It’s important to note that not everyone is eligible for the entire credit. Additionally, since it’s not a rebate, only those who owe money on their income tax can benefit from this tax credit.

You will need to owe $5,600 in taxes during the first year to claim immediate savings or owe at least $1,120 a year for the next five years to take full credit.

Solar Stimulus Program: New Hampshire Solar Tax Credit

The Residential Renewable Electrical Generation Rebate program in New Hampshire offers the residents in the state a local rebate option. This program provides a cash-back perk for $200 per each installed kW.

The rebate can give you a total of up to $1,000 or 30% of the cost of your entire system, whichever is lower.8

Wide shot of a solar panel system installed on the roof of a house and its attached garage absorbing sunlight and provide clean and sustainable energy.

(Image: Montgomery County Planning Commission24)

Since the average cost of a solar panel system for residents in New Hampshire is around $18,915, 30% of this value would be too high for the rebate as it is above $5,500. Even if you consider the rebate amount on a per kWh basis, it would be too high.

An average solar panel system will generate 6.5 kW of energy and if $200 is to be applied per kilowatt, it will amount to $1,200. Therefore, most residents in NH can receive a rebate of around $1,000 which is the maximum fund allowed by this program.

Unlike the federal solar credit, New Hampshire provides an actual rebate which guarantees savings. You must file for this rebate and hope that the funding is available at the time of filing.

How To Claim the Solar Rebate in NH

Before learning how to claim the solar rebate in NH, you must first know where this solar energy rebate comes from. The state of New Hampshire requires its electric providers to have 25% of their energy generated from renewable and clean energy sources.

Most providers cannot meet this demand because they are unable to get renewable electricity at a reasonable price, or there isn’t enough renewable energy for them.

As a result, the government lets these electricity providers make payments to NH’s Renewable Energy Fund. This fund is used in part to supply the solar rebate program.

The administration of this program is done annually and the total amount of available rebate funds depends on the amount that the electricity providers have paid into it.

If you want to apply for this rebate fund, you must do it at the time the NH Department of Energy designates. For example, the 2022 applications of funds were accepted only in the month of October that year and the funds were soon allocated to the applicants.

To apply for the rebate fund you can take the following steps:17

  • Step 1: Complete a vendor’s registration with New Hampshire state
  • Step 2: Fill out an incentive pre-approval application
  • Step 3: Fill out the Final Incentive Request Form18

Most solar experts in the region recommend getting in touch with the Department of Energy (DOE) New Hampshire,19 to know more about the application and the timeframe for future rebate program allocations.

The DOE program is a great perk to have access to. It gives you a potential $1,000 cashback advantage.

The program contributes to having the solar system more accessible and viable overall. Most importantly, it decreases the financial burden of installing a solar panel system.

Unfortunately, this program has constrained funds and timeframes. As such, there’s a possibility that you will not receive the rebate timely in terms of when you installed your solar system.

There’s also a chance that you may not receive the rebate at all. However, it’s still work applying because there’s a high chance that you will still get it.

New Hampshire Solar Incentives: New Hampshire Property Tax Exemptions for Solar Systems

To those asking, Does solar increase home value? The asnwer is, Yes!

A property tax exemption prevents the increase of your property taxes as a result of going solar. In most cases, home improvements raise the value of the house which in turn drives up taxes.

However, this rule does not apply to installing a solar energy system in your home as most states, including NH exempt installing solar from property taxes.9

It’s important to note that the State of New Hampshire doesn’t have a statewide exemption for solar system installation in your home. Instead, state laws have allowed municipalities to apply for this exemption.

As of 2023, almost all local NH governments have adopted this policy.

This property tax exemption is very important because it limits the burden of converting to solar while at the same time, boosting the value of your home by around 4.1%.

A solar panel installer affixing the solar panel system on the roof of a house using a hand drill.

(Image: 100% Campaign25)

Your local taxation rate and system value will determine the exact amount you will save with this benefit program. Since the average value of a system in your area is $18,915, and the rate of state property tax is 1.77%, then you can expect to save around $334 every year.

Since most systems last 20 years on average, then you are expected to save a total of $6,680 on tax bills. However, please note that this is just an estimate.

The actual savings may be less because of the system’s depreciation over time. Nevertheless, this estimate gives you an idea of the general value of this program.

How To Claim the Tax Exemptions

You will have to get in touch with your local jurisdiction to find out if they have adopted the tax exemption for solar property and if your house qualifies for it. Once you’ve verified that you are good to go, you must fill out the Property Tax Credits/Exemption Permanent Application form and file it with your local municipality.20

This incentive helps to minimize the financial burden of going solar. The process takes minimal time to apply and you can end up saving $6,500 over a span of 20 years.

New Hampshire Net Metering

Net metering in New Hampshire, commonly known as Net Energy Metering (NEM), refers to a billing policy for the major utility companies in the state, mandated by the Public Utilities Commission (PUC) in NH.

Among the New Hampshire solar incentives, net metering is the only process that goes on and on up to the end of your systems life span. The main goal of the policy is to guarantee that you’ll get credited for the excess energy generated by your solar panels.

You will supply this energy to the local power grid and accrue credits that you can call on later to avoid paying retail electricity rates.

This is a beneficial program because the electricity rates in New England are astounding given the well-above-average energy costs and electricity rates. Since this incentive benefits people with systems that overproduce energy, it’s worth mentioning that you should consider solar panels with high efficiency warranties to take full advantage of the program.

Your local utility company determines the specific credit you get.

How To Get Into the Net Metering Program in NH

You are required to apply for the net energy metering program. However, if you choose a reputable solar installer you will not need to file the application yourself.

If you want to know how to get into the net metering program in NH, you should take the following steps.

  • Step 1: Find an experienced and reliable installer who can complete the net energy metering process for you
  • Step 2: Carry on with the installation of the solar panel system
  • Step 3: You can apply for the net metering program yourself or have the installer apply for you
  • Step 4: Experts recommend monitoring electric bills for at least two months after installation to ensure that you’re getting credits. If this isn’t happening, you should reach out to your local installer to verify that the application for net energy metering and interconnection was filed

Net metering is beneficial because it improves your chances of getting rid of your energy bill all together. This means that you can reduce the payback period of your system while at the same time maximize on long-term savings.

This perk, together with the solar tax credit ensures that you pay for your entire system and save an additional $28,409 in the span of 20 years.

Local Solar Incentives

Lastly, several local bodies such as utility companies offer perks that make installing a solar system even more valuable. For example, some utility companies offer rebates to people with solar batteries who allow them to use stored energy in times of high demand.

These local benefits, the state rebate, the federal tax credit (solar investment tax credit) and property tax exemption are examples of New Hampshire solar incentives which can help reduce the cost of solar panels in New Hampshire.

Frequently Asked Questions About New Hampshire Solar Incentives

Are Solar Panels Worth It in New Hampshire?

Yes, there are several incentives and rebates that reduce the cost of installing solar by 30% to 50%. Not to mention the long-lasting energy benefits that solar panel systems provide.

What States Have Solar Incentives?

All states have their own solar incentives including the federal tax credit on solar systems.

How Many Days of Sun Does a New Hampshire Solar Roof Receive?

New Hampshire has about 128 sunny days.

What Is Solar City New Hampshire?

This was a solar company in NH that existed up to the end of 2015.

How Does the Federal Energy Credits Work?

If you install a solar system, you are awarded up to 30% of the cost of your system in tax credits that you can claim for up to five years.

What Are Some Solar Rebates From the Government?

One example of a rebate is the New Hampshire solar rebate that provides a cash-back perk for $200 per each installed kW. The rebate can give you a total of up to $1,000 or 30% of the cost of your entire system, whichever is lower.

Does Solar Increase Home Value?

Installing solar is a home improvement method therefore it increases the value of the home. However, in most states it does not increase the property tax.

What Do I Need To Know About How To Get Solar Panels for Free?

To those wondering, how to get solar panels for free? You can do this by leasing the solar panels or going under a power purchase agreement.


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