New Hampshire Solar Incentive Programs
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
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
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
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
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)
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
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).
NH Utilities and Solar Programs
All four NH distribution utilities offer net metering. Your utility determines the specific interconnection process and fees.
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 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.
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.
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
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
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
- NHPUC Order 27074 (Docket 22-060, November 18, 2024), NEM 2.0 credit structure, 2040 termination, interconnection fees
- Eversource NH Default Service Rate, August 2026, 14.009¢/kWh supply rate confirmed
- Eversource NH News, February 2026 Rate Change, 11.303¢/kWh supply rate (Feb to Jul 2026)
- RSA 72:62, NH Solar Property Tax Exemption Statute Text, optional, municipality-adopted
- NH HB1002 (2026), bill to repeal RSA 72:62, died on table August 20, 2026
Get quotes from New Hampshire solar installers
Local installers know the New Hampshire incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.