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The best states for installing solar panels aren’t necessarily the sunniest, but those with the strongest incentives. Despite frequent cloudy weather, New Hampshire’s solar incentives make it an attractive option for switching to this eco-friendly energy source.
Installing solar panels is an investment that can pay for itself over time. To reduce the financial impact, you can take advantage of federal, state, and local incentives. In New Hampshire, the federal tax credit offers the best savings, but there are also additional incentives available specifically for Granite State residents.
The Residential Clean Energy Credit
The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.
To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.
Net Metering
Net metering enables homeowners to save on electricity bills by exchanging excess energy for credits with their utility company. These credits can be used to offset the cost of electricity when solar panels do not produce enough energy to meet household needs, such as during the winter months.
In New Hampshire, the Public Utilities Commission (PUC) mandates net metering for most utility providers, including Eversource, Liberty Utilities, New Hampshire Electric Cooperative (NHEC), and Unitil. However, the specific terms of net metering programs may vary by company.
New Hampshire Low Income Home Energy Assistance Program (LIHEAP)
The New Hampshire Low-Income Home Energy Assistance Program (LIHEAP) is a state-wide initiative designed to help households with limited incomes manage their energy costs. This program is implemented in partnership with local Community Action Agencies (CAAs) and provides assistance based on pre-tax household income levels.
The overarching goal of the LIHEAP program is to make energy bills more affordable for eligible households. In addition to traditional forms of energy assistance, the program’s funds can be utilized for solar energy solutions, including community solar subscription fees. This expands the program’s scope to support the adoption of renewable energy sources for low-income households.
Furthermore, grant recipients under the LIHEAP program can also receive recommendations for suitable community solar subscriptions. This guidance helps ensure that participants can make informed decisions and take advantage of the program’s solar energy benefits effectively.
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Solar for All
- The New Hampshire Department of Energy (NHDOE), The New Hampshire Community Loan Fund, and New Hampshire Housing Finance Authority have jointly designed a comprehensive and complementary approach to bring the benefits of residential-serving community solar to those least able to afford this new technology. The Community Loan Fund will target resident-owned communities through their existing program, which helps the residents of manufactured housing parks buy the park from owners and convert them into cooperatives. NH Housing will use funding to install residential-serving community solar on workforce housing projects. Lastly, the NHDOE, serving as the Coalition lead applicant, will scale up its existing community solar program with these funds, serving as a catch all to those communities or projects that do not neatly fit into any of those programs by the Community Loan Fund and Housing Finance Authority.
- The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development.
Local Option – Energy Efficiency & Clean Energy Districts
Energy Efficiency & Clean Energy Districts program allows local governments to create districts that provide financing for energy efficiency, renewable energy, and water conservation projects. This financing is repaid through property assessments. The initiative aims to promote sustainable energy practices and reduce environmental impact by making it easier for property owners to fund and implement energy improvements.
Local Option – Property Tax Exemption for Renewable Energy and Electrical Energy Storage
Property Tax Exemption for Renewable Energy and Electrical Energy Storage allows local governments to offer property tax exemptions for properties that install renewable energy systems or electrical energy storage. This policy aims to incentivize the adoption of clean energy technologies by reducing the property tax burden for eligible installations. Cities and towns may adopt an exemption provision separately for each energy source.
Disclaimer
The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.
