How to Save Money on Solar Panels In New Hampshire

How to Save Money on Solar Panels In New Hampshire

In 2018, New Hampshire began offering cash incentives for those that installed solar energy systems. The rebate is the latest of a good list of benefits for renewable technology in the Granite State. Homeowners that install solar panels in New Hampshire have an opportunity to save thousands of dollars with incentives like these.

Want to learn more about how to lower the cost of an installation? From federal incentives to government regulations, we break down all the opportunities available in the Granite State. Let’s get into it so you can save money and the environment.

How to Save Money on Solar Panels in New Hampshire: Overview

Despite notorious, New England weather, New Hampshire is one of the best places to invest in solar energy. While the state has some of the highest rates for equipment, the decent sunlight, high electricity bills, and low power usage means homeowners can save thousands with an array.

And that’s just the beginning. Solar panels in New Hampshire have great, state-level support. In conjunction with the federal solar incentive, residents of the Granite State have access to rebates, net metering, and tax exemptions. Let’s get into these a little more below.

Solar Panels in New Hampshire: Federal Incentive

Before getting into any other benefits, New Hampshirites need to look into the federal solar tax credit. This program offers 30% back on all solar installations, from equipment costs to sales tax. When applied to a 6kW system, residents of the Granite State can save over $5,000.

In order to take advantage of this program, it’s important to know that you must own the system. This means solar leasing disqualifies you from the benefit. The federal credit is available until 2035 when it’s scheduled to end, so don’t wait too long.

New Hampshire’s Credits and Rebates

Some of the best ways that states can help residents afford solar is through financial incentives. Incredibly uncommon, New Hampshire offers a solar rebate on installations. The program offers $1,000 or 30% of build costs, whichever is lower. The rebate applies after the federal incentive, which means you’ll get the maximum return.

Homeowners that install solar panels in New Hampshire can receive a $1,000 rebate for their system.

Not only Can New Hampshirites lower installation costs upfront, but they’re in a great position to earn money every year for the energy they produce. The Granite States has a perfect net metering program, which requires utility companies to purchase excess solar energy produced by residential arrays. These payments come in the form of a credit toward next month’s electricity bill and roll over indefinitely. 

Solar Panels in New Hampshire: Government Regulations

These incredible benefits exist on the back of a solid, albeit old, set of renewable portfolio standards (RPS). A state’s RPS is the prime indicator for determining the future of renewable energy. 

New Hampshire has a goal of 25.2% clean energy production by 2025. While this isn’t as aggressive as in some states, it’s proven a successful goal for promoting solar.

The Granite State also has a solar carve-out of 0.7% by 2020 (expired). This designation is the percentage of clean energy that must come from solar technology. The carve-out is pretty small, and at this point is completed. It’s been effective at pushing for new installations, but an updated one will keep the ball rolling.

Alongside their regulatory standards, homeowners benefit from a city-dependent property tax exemption. This keeps New Hampshirites from paying additional taxes when their property value increases. A property tax exemption can save homeowners thousands of dollars over 25 years.

Should New Hampshirites Lease Solar?

In some states, residents without the means to purchase their own systems can lease a solar panel system. While solar leasing disqualifies homeowners from any incentives, including the federal solar tax credit, it’s a great way to access renewable energy and reduce carbon footprints. Fortunately for New Hampshirites, this option is available. 

Solar Panels in New Hampshire: Incentive Summary

Federal Tax Incentive30% credit
New Hampshire Tax Credits / RebatesNone / the lesser of $1,000 or 30% of installation costs
Net MeteringYes
Renewable Portfolio Standard25.2% by 2025, 0.7% solar carve-out by 2020 
Property Tax Exemption100%
Sales Tax ExemptionNone 
Performance Payment ProgramNone 

Frequently Asked Questions

Do you actually save money going solar in New Hampshire?

With decent sunlight, high electricity rates, and solid state-level support, homeowners in New Hampshire can save upwards of $22,000 or more by switching to solar energy.

How long does it take for solar panels to pay for themselves in New Hampshire?

With an average annual utility bill of $1,562.64, New Hampshirites can pay off a 6kW system in about 10.9 years. While this is slightly higher than normal, this number drops if homeowners install a smaller system.

How much do solar panels cost in New Hampshire?

In New Hampshire, homeowners can expect to pay about $2.83 per watt for solar energy. This equals about $16,980 for a 6kW system before incentives.

Can I use the federal tax incentive in New Hampshire?

Residents can use the federal solar tax credit on solar panels in New Hampshire. This incentive returns 30% of purchases made toward an array. Homeowners utilizing this benefit can save over $5,000.

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