New Hampshire Solar Incentives 2026: Complete Guide

New Hampshire surprises most solar buyers: despite being the 8th smallest state and sitting at a northern latitude, it delivers some of the best solar economics in New England. Eversource electricity rates now average $0.25–$0.28/kWh — among the highest residential rates in the country — which dramatically accelerates solar payback. Add the state's no sales tax advantage, a strong net metering law, and a property tax exemption, and the math gets compelling fast.

This guide explains every incentive available to New Hampshire homeowners in 2026, with worked examples for Concord, Manchester, and Portsmouth.

New Hampshire Solar Incentive Overview

Incentive	Value	Who Qualifies
Federal Investment Tax Credit (ITC)	30% of system cost	All homeowners with tax liability
Energy Community ITC Adder	+10%	Qualifying former industrial census tracts
NH Property Tax Exemption	Varies by municipality	Most homeowners (municipality-specific)
NH Sales Tax	$0 — NH has no sales tax	Everyone
Net Metering	Retail rate (up to 1 MW)	Eversource, Unitil, NH Electric Co-op
USDA REAP	Up to 50% grant	Rural agricultural property owners

1. Federal Investment Tax Credit (ITC): 30%

The 30% federal ITC applies to the full installed cost of your solar system, including panels, inverter, racking, wiring, and installation labor. Battery storage qualifies when charged at least 80% from solar (for standalone batteries, this rule applies regardless).

For a typical New Hampshire home needing a 9 kW system:

System Cost Component	Example 9 kW
Gross installed cost	$27,000
Federal ITC (30%)	−$8,100
NH net after ITC	$18,900

The ITC is a dollar-for-dollar reduction of your federal income tax bill — not a deduction. You claim it in the year your system reaches Permission to Operate (PTO). If your credit exceeds your tax liability in Year 1, the remaining balance carries forward to future tax years indefinitely.

Important: You must own your system outright (purchase or solar loan) to claim the ITC. Leases and Power Purchase Agreements (PPAs) assign the credit to the financing company, not to you.

2. New Hampshire Has No Sales Tax

New Hampshire is one of only five states in the country with no state sales tax. On a $27,000 solar system, buyers in neighboring Massachusetts would pay $1,688 in 6.25% sales tax; in Connecticut, $1,715 in 6.35% sales tax. In New Hampshire, you pay $0.

This is an automatic, invisible savings — no application required. It also means New Hampshire solar prices are directly comparable to the "before tax" prices you see in national cost guides, without any hidden markup.

3. New Hampshire Property Tax Exemption

New Hampshire law (RSA 72:61–72:72) grants municipalities the authority to exempt the added assessed value from solar installations from property taxes. Most incorporated towns and cities in New Hampshire have adopted this exemption — but it is municipality-specific, not automatic statewide.

How it works:

The solar system adds assessed value to your home (typically $10,000–$20,000 depending on system size)
Without the exemption: you'd pay property taxes on that additional value every year
With the exemption: the solar equipment is excluded from your assessment — $0 added property tax

At New Hampshire's average effective property tax rate of 1.93% (one of the highest in the U.S.), a $15,000 boost in assessed value would otherwise cost ~$290/year. Over a 25-year system life, that's $7,250 in avoided taxes — a significant incentive.

How to confirm: Contact your town or city's assessing office before your system is permitted. Ask: "Has the municipality adopted RSA 72:61–72:72 solar exemption?" Most have; the few that haven't are typically rural communities. You must apply for the exemption before April 15 of the year following installation using Form PA-29.

4. New Hampshire Net Metering

New Hampshire's Public Utilities Commission (NHPUC) mandates retail-rate net metering for all electric utilities in the state, including:

Eversource Energy (largest utility — most of southern and central NH)
Unitil (Concord, Seabrook, and the Fitchburg MA border area)
NH Electric Cooperative (northern and rural NH)
Liberty Utilities (Hampstead and nearby towns)

How NH net metering works:

Your solar system produces electricity throughout the day
Excess production spins your meter backward, crediting you at the full retail rate (currently $0.25–$0.28/kWh for Eversource residential)
At night or on cloudy days, you draw from the grid and pay retail rate
On a monthly basis, you only pay the net difference
Annual true-up: In April, any remaining excess credits are settled at the utility's avoided-cost rate (approximately $0.07–$0.09/kWh) — NOT the retail rate

Sizing implication: Because of the avoided-cost annual true-up, you should not oversize your system to produce far more than your annual usage. Design your system to offset 90–100% of your usage — excess annual production earns only $0.07–$0.09/kWh instead of $0.27/kWh.

System size limit: Net metering is available for systems up to 1 MW — this covers virtually all residential installations with room to spare.

Fixed charges: All NH utilities charge a monthly customer service fee ($6–$10/month) that you pay regardless of how much solar you produce. Solar does not eliminate this base charge.

5. Eversource Rates and the NH Solar Opportunity

Eversource residential electricity rates have averaged $0.26–$0.28/kWh in 2025–2026, with summer peak rates exceeding $0.30/kWh when the supply charge component spikes. These rates are driven primarily by natural gas and capacity market costs — both of which are expected to remain elevated or increase.

Every kWh your solar system produces and self-consumes saves you the full retail rate. This high-rate environment is the primary driver of NH solar economics.

Rate escalation assumption: Eversource rates have risen approximately 3–5%/year on average over the past decade. If rates increase just 3%/year, your $0.27/kWh rate becomes $0.49/kWh by Year 20. Your solar savings compound with each rate increase — the system's fixed economics look better every year.

6. Energy Community ITC Adder (+10%)

The Inflation Reduction Act created an additional 10% ITC bonus for solar installed in Energy Community census tracts — areas economically affected by the closure of coal mines, coal plants, or defined former manufacturing areas.

In New Hampshire, Energy Community eligibility is limited. Parts of Hillsborough County (former industrial areas near Manchester) and select census tracts in Strafford County and Coos County may qualify. This is less broadly applicable than in states like Pennsylvania, Michigan, or Kentucky, but worth confirming for your specific address.

How to check: Use the Department of Energy's Energy Community mapping tool to enter your address and confirm eligibility. If you qualify, your ITC jumps from 30% to 40% — a meaningful $2,700 boost on a $27,000 system.

7. USDA Rural Energy for America Program (REAP)

New Hampshire has significant rural acreage across Grafton, Coos, Carroll, and Sullivan counties. Agricultural producers (farms, agricultural businesses) in these areas may qualify for USDA REAP grants and loan guarantees:

Grant: Up to 50% of total installed cost
Loan guarantee: Up to 75% of total project cost (at favorable USDA rates)
Combined maximum: Up to 75% of total project cost through grant + loan

Eligibility requires that at least 50% of the business's gross income come from agricultural operations. REAP applications are processed by the USDA Rural Development office — New Hampshire's office is in Manchester.

For a 10 kW agricultural system costing $30,000:

REAP grant (50%): −$15,000
Federal ITC (30% of remaining): −$4,500
Net cost: $10,500 with a 3–4 year payback at Eversource rates

8. Full Stacking Example: Manchester, NH

Household profile: Manchester, Eversource territory, 1,800 sq ft home, monthly usage 800 kWh

System design:

Peak sun hours: 4.2/day (Manchester, NH)
System size: 8 kW
Annual production: ~8,400 kWh
Annual usage: ~9,600 kWh → system offsets ~88%

Cost breakdown:

Item	Amount
Gross installed cost (8 kW × $3.10/W)	$24,800
Federal ITC (30%)	−$7,440
NH sales tax	$0
Net cost after ITC	$17,360

Savings:

Annual electricity offset: 8,400 kWh × $0.27/kWh = $2,268/year
Residual grid bill (fixed charges + ~12% usage): ~$420/year
Annual net savings: ~$1,848/year

Payback period:

Simple payback: $17,360 ÷ $1,848 = 9.4 years
Property tax exemption NPV (if adopted): +$5,500 over 25 years → adjusts effective payback to ~8.5 years
25-year savings (after system payback): ~$25,000

9. Full Stacking Example: Concord, NH

Household profile: Concord, Eversource territory, 2,200 sq ft home, monthly usage 1,050 kWh

System design:

System size: 10 kW
Annual production: ~10,500 kWh
Annual usage: ~12,600 kWh → offsets ~83%

Item	Amount
Gross installed cost (10 kW × $3.00/W)	$30,000
Federal ITC (30%)	−$9,000
NH sales tax	$0
Net cost after ITC	$21,000

Savings:

Annual offset: 10,500 kWh × $0.26/kWh = $2,730/year
Annual net savings (after fixed charges): ~$2,280/year
Simple payback: ~9.2 years

At 3% annual rate escalation, the 25-year utility bill comparison:

Without solar: ~$82,000 cumulative utility cost
With solar: ~$24,000 cumulative (loan + minimal grid bill)
25-year net savings: ~$58,000

10. Portsmouth and Seacoast NH: Higher Rates, Faster Payback

Portsmouth and the Seacoast region sit in Eversource territory but often see slightly higher supply charges. At $0.28–$0.30/kWh, a 9 kW system can achieve:

Annual production: ~9,450 kWh (4.4 peak sun hours in Portsmouth)
Annual savings: ~$2,550–$2,835/year
Net cost after 30% ITC: ~$18,900
Payback: 6.7–7.4 years — among the best in New England

This is particularly notable given Portsmouth's latitude (~43°N). The high utility rate more than compensates for the latitude penalty.

11. NH vs. New England Neighbors

State	Key Incentive	Avg Rate	Payback (9 kW)
NH	No sales tax + property tax exemption	$0.27/kWh	8–10 years
MA	SMART PBI + 15% state credit	$0.24/kWh	3–5 years
CT	RSIP $0.20–$0.26/kWh for 6 years	$0.26/kWh	3–4 years
RI	REF $0.20–$0.35/W rebate	$0.24/kWh	5–7 years
ME	Property tax exemption, retail NEM	$0.22/kWh	10–13 years
VT	Green Mountain Power NEM, no credits	$0.21/kWh	11–15 years

New Hampshire sits in the middle of the New England pack. Without a direct performance-based incentive like Massachusetts's SMART or Connecticut's RSIP, payback periods are longer. But the no-sales-tax advantage and high utility rates mean NH is significantly better than Maine or Vermont for solar economics.

For NH buyers who want shorter payback: Look at whether your home uses significant electricity (heat pumps, EVs, high AC load) — the more electricity you use, the faster the payback in a high-rate state.

12. Solar Financing in New Hampshire

Most NH buyers choose one of three paths:

Cash purchase: Maximum lifetime savings (~$58,000+ over 25 years for a 10 kW system). Immediate eligibility for the 30% ITC. Highest upfront cost ($21,000–$30,000 after ITC).

Solar loan: Zero down payment options available. You own the system and claim the ITC. Monthly solar loan payment typically replaces most of your utility bill. Total 25-year cost is higher than cash but positive IRR. Look for 2.99–6.99% APR secured solar loans; avoid home equity loans that put your house at risk for a $20K solar loan.

Lease/PPA: Available in NH through Sunrun, Sunpower/Maxeon, and regional installers. You do NOT claim the ITC. Monthly payment is typically lower than your current bill, but you sacrifice $7,000–$10,000 in ITC savings over the contract term. Generally not recommended for NH homeowners who have tax liability.

13. How to Go Solar in New Hampshire: Step-by-Step

Get 3 installer quotes from NH-licensed solar contractors (verify NABCEP certification)
Confirm property tax exemption with your town or city assessor before permits are filed
Check Energy Community eligibility for your address if you're in Hillsborough, Strafford, or Coos county
Sign a contract and review the how to read your solar quote guide before committing
Permit and install: 2–3 month timeline typical in NH (permit review, Eversource/utility interconnection)
PTO (Permission to Operate): Eversource interconnection typically takes 4–8 weeks after inspection
File ITC (Form 5695) with your federal taxes for the year you receive PTO
File PA-29 with your town assessor by April 15 to claim the property tax exemption

New Hampshire Solar: Key Takeaways

No sales tax saves $1,500–$3,000 vs. neighboring states — automatic, no application required
Retail-rate net metering is mandated by the NHPUC and legislatively stable
Eversource rates ($0.26–$0.28/kWh) are among the highest in the country, accelerating payback
Payback: 8–10 years for most southern NH homes; 6–8 years in high-usage or high-rate scenarios
25-year savings: $45,000–$65,000 for a properly sized 9–11 kW system
Property tax exemption: Confirm with your municipality — most have adopted RSA 72:61–72:72

For more information on maximizing your investment, see our solar payback period calculator, solar panel installation cost guide, and complete state-by-state incentive comparison. Neighboring state guides: Massachusetts, Connecticut, Rhode Island, New York.