Can I still claim a federal tax credit for solar in New Hampshire in 2026?

The federal Residential Clean Energy Credit (Section 25D) expired for systems placed in service after December 31, 2025. The only federal benefit available in 2026 is through third-party-owned solar leases under Section 48E, but the company must begin construction before July 4, 2026. Most homeowners installing systems in 2026 will not qualify for a federal credit. Check IRS guidance at https://www.irs.gov/credits-deductions/residential-clean-energy-credit for details.

Does New Hampshire have a state income tax credit for solar?

No. New Hampshire does not offer a state income tax credit for residential solar installations. The state does provide a local-option property tax exemption under RSA 72:61-72 (where adopted by your municipality) and a Renewable Energy Fund residential rebate that can reduce your overall system cost. New Hampshire has no general sales tax, so there is no sales tax on solar equipment to begin with.

What is New Hampshire's net metering policy?

New Hampshire has a 1:1 net metering policy. Excess electricity your system generates is credited to your utility account at the same rate you pay for grid electricity. This credit rolls over month to month and can offset future bills.

How much does a typical residential solar system cost in New Hampshire?

A 6-8 kW system (average for NH homes) costs between $26,000 and $31,000 before incentives. After applying the local-option property tax exemption (where adopted) and any available Renewable Energy Fund or utility rebates, the net cost typically ranges from $26,000 to $29,000. New Hampshire has no general sales tax, so there is no sales tax to apply or exempt.

What is the payback period for solar in New Hampshire?

Most homeowners in New Hampshire see payback in 10 to 12 years, depending on their utility, roof orientation, and system size. After payback, electricity is essentially free for the remaining 15+ years of system life.

Which New Hampshire utilities offer the best solar incentives?

Eversource Energy and Unitil both offer net metering, and homeowners statewide can apply for the New Hampshire Renewable Energy Fund residential rebate (capped at $1,000 per system, subject to funding). Check with your specific utility for any additional rebate availability, as programs change annually. Use DSIRE at https://www.dsireusa.org/ to find all active incentives in your area.

New Hampshire Solar Incentives, Costs & Backup Power (2026)

New Hampshire Solar in 2026: The Honest Picture

New Hampshire homeowners face a significant shift in solar economics in 2026. The federal Residential Clean Energy Credit, which had provided a dollar-for-dollar reduction in federal taxes for most residential solar installations, expired on December 31, 2025. This means that for systems placed in service in 2026, the federal tax credit is no longer available to most homeowners.

However, New Hampshire remains a solid market for solar. The state offers meaningful incentives at the state level, including a municipal property tax exemption on solar equipment (where adopted) and a 1:1 net metering policy that credits excess generation at retail rates. New Hampshire has no general sales tax, so there is no sales tax to apply or exempt on solar equipment. These benefits, combined with moderate solar irradiance and competitive installer pricing, keep solar economically viable for many homeowners.

The key question for 2026 is whether state incentives and long-term electricity savings alone justify the upfront investment. For most New Hampshire homeowners, the answer is yes, but the payback period has extended to 10-12 years compared to 7-9 years when the federal credit was available.

Average Solar System Cost in New Hampshire (2026)

A typical residential solar system in New Hampshire ranges from 6 to 8 kilowatts (kW), sized to offset 80-100% of annual electricity consumption for an average home.

Gross system cost (before incentives): $28,500 to $31,000

This includes equipment (panels, inverter, racking, wiring), labor, permitting, and interconnection.
Per-watt pricing averages $4.25 to $4.75, consistent with regional market rates.

State and local incentives reduce net cost:

Property tax exemption: saves approximately $1,500 to $2,000 over 10 years (100% exemption on equipment value, where the municipality has adopted RSA 72:61-72).
New Hampshire has no general sales tax, so no sales tax applies to solar equipment in the first place.
Renewable Energy Fund (REF) residential rebate: up to $1,000 for eligible systems (subject to available funding).
Utility-specific rebates: Eversource and Unitil occasionally offer $500 to $1,000 rebates; check current programs.

Net cost after incentives: $26,000 to $29,000

For detailed cost comparisons in your area, consult the EnergySage cost benchmarks at https://www.energysage.com/local-data/solar-panel-cost/new-hampshire/.

Real New Hampshire Homeowner Savings (Sample Scenarios)

Savings depend on your utility, electricity consumption, roof orientation, and system size. Here are five realistic scenarios:

Manchester (Eversource service area, 6 kW system):

Annual electricity consumption: 10,000 kWh
Current annual bill: $1,400
Annual solar savings: $1,100 (after accounting for net metering and system losses)
25-year lifetime savings: $28,000
Payback period: 11 years

Nashua (Unitil service area, 7 kW system):

Annual electricity consumption: 11,500 kWh
Current annual bill: $1,550
Annual solar savings: $1,250
25-year lifetime savings: $32,000
Payback period: 10 years

Portsmouth (Eversource, coastal, 6.5 kW system):

Annual electricity consumption: 9,500 kWh
Current annual bill: $1,350
Annual solar savings: $1,050
25-year lifetime savings: $27,500
Payback period: 11 years

Concord (Eversource, 7 kW system):

Annual electricity consumption: 12,000 kWh
Current annual bill: $1,620
Annual solar savings: $1,300
25-year lifetime savings: $34,000
Payback period: 10 years

Lebanon (Unitil, 6 kW system):

Annual electricity consumption: 9,800 kWh
Current annual bill: $1,380
Annual solar savings: $1,080
25-year lifetime savings: $28,500
Payback period: 11 years

These estimates assume 4.2 kWh/m2/day average solar irradiance (per NREL data for New Hampshire), a south-facing roof with minimal shading, and current electricity rates. Actual savings will vary based on your specific location and system design.

New Hampshire Solar Incentives Still Available in 2026

Property Tax Exemption (RSA 72:61-72)

Under RSA 72:61-72, New Hampshire municipalities may adopt a property tax exemption for solar equipment. Where adopted, the value added to your home by a solar system does not increase your property tax bill. Adoption is local, so confirm with your town or city assessor that the exemption is in place. For a $28,000 system in a town that has adopted the exemption, this saves approximately $150 to $200 per year in property taxes, totaling $1,500 to $2,000 over a 10-year period.

Sales Tax

New Hampshire has no general sales tax, so there is no sales tax charged on solar equipment or installation labor in the first place. There is no separate “solar sales tax exemption” because there is nothing to exempt from.

Net Metering (1:1 Credit)

New Hampshire’s net metering policy credits excess electricity your system generates at the full retail rate. If your system produces more than you consume in a given month, the surplus is credited to your account and rolls over to future months. This is a 1:1 credit, meaning you receive full value for excess generation. Net metering is essential for maximizing solar ROI in New Hampshire.

Renewable Energy Fund (REF) Residential Rebate

The New Hampshire Renewable Energy Fund, administered through the state’s Public Utilities Commission, offers rebates for residential solar installations. The residential rebate is capped at $1,000 per system and is subject to available funding. Availability is limited and applications are processed in the order received. Check with the NH PUC or visit the DSIRE database at https://www.dsireusa.org/ to confirm current rebate availability.

Federal Options (Limited in 2026)

The Residential Clean Energy Credit (Section 25D) is no longer available for systems placed in service after December 31, 2025. The only federal benefit available in 2026 is through third-party-owned solar leases under Section 48E, but the installation company must begin construction before July 4, 2026. Most homeowners purchasing systems outright will not qualify for a federal benefit. For details, see the IRS guidance at https://www.irs.gov/credits-deductions/residential-clean-energy-credit.

Is Solar Worth It in New Hampshire Without the Federal Credit?

The loss of the federal tax credit makes the decision more nuanced. Here is the framework:

Payback period: 10-12 years for most homeowners. This is longer than the 7-9 years typical when the federal credit was available, but still reasonable given the 25+ year lifespan of solar panels.

Long-term economics: After payback, your system generates free electricity for 15+ years. Over a 25-year lifespan, most New Hampshire homeowners save $28,000 to $35,000 in electricity costs.

Break-even analysis: If you plan to stay in your home for at least 12 years, solar is financially sound. If you plan to move within 7-8 years, the payback may not occur before you sell.

Non-financial benefits: Solar increases home value, reduces grid dependence, and provides protection against future electricity rate increases. These intangible benefits may justify the investment even if payback extends beyond 12 years.

Lease alternative: If you cannot afford the upfront cost or prefer to avoid ownership, some installers still offer solar leases or power purchase agreements (PPAs). These typically require no money down but offer lower long-term savings. Verify that your installer’s lease qualifies for the Section 48E federal benefit before signing.

Top Cities for Solar in New Hampshire

Manchester: Largest city, strong installer competition, Eversource net metering, average payback 11 years.
Nashua: Second-largest city, Unitil service area, good solar irradiance, average payback 10 years.
Concord: State capital, Eversource service, moderate electricity rates, average payback 10 years.
Portsmouth: Coastal location, slightly higher irradiance, Eversource service, average payback 11 years.
Lebanon: Upper Valley region, Unitil service, competitive installer base, average payback 11 years.
Keene: Southwestern region, Eversource service, growing solar adoption, average payback 11 years.

What to Look for in a New Hampshire Solar Installer

Licensing and insurance: Verify the installer holds a New Hampshire electrical license and carries general liability and workers’ compensation insurance. Check the New Hampshire Department of Safety website for license verification.
Experience with net metering: Ensure the installer understands New Hampshire’s 1:1 net metering policy and can design systems to maximize grid credits. Ask how many systems they have installed in your utility service territory.
Familiarity with state incentives: The installer should be able to guide you through the local property tax exemption process (where your municipality has adopted RSA 72:61-72) and any available Renewable Energy Fund rebates.
Permitting and interconnection expertise: Solar installations require local building permits and utility interconnection approvals. Choose an installer who handles these processes and has established relationships with your local permitting authority and utility.
Warranty and service: Verify the installer offers at least a 10-year workmanship warranty and has a local service team. Ask about monitoring and maintenance support.
References and reviews: Request at least three local references and check online reviews on Google, EnergySage, and the Better Business Bureau. Look for installers with consistent 4.5+ star ratings.
Transparent pricing: Request a detailed written quote that itemizes equipment, labor, permitting, and incentives. Avoid installers who are vague about costs or pressure you to sign before you have reviewed the full proposal.

Next Steps for New Hampshire Homeowners

The solar market in New Hampshire is competitive, and installer pricing varies significantly. Obtaining multiple quotes is the best way to ensure you receive fair pricing and quality service.

Use online comparison platforms to request free quotes from vetted installers in your area. Compare equipment quality, warranty terms, and total net cost after incentives. Most installers provide quotes within 24-48 hours.

For additional research, consult the SEIA state market data at https://www.seia.org/states-map and the NREL solar resource maps at https://www.nrel.gov/gis/solar-resource-maps.html to understand solar potential in your specific location.

The loss of the federal tax credit in 2026 does not eliminate solar’s value in New Hampshire, but it does require careful analysis of your specific situation. With state incentives, net metering, and long-term electricity savings, solar remains a sound investment for homeowners planning to stay in their homes for at least a decade.

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Sources for 2026 data: IRS Section 25D guidance, DSIRE state incentive database, New Hampshire Public Utilities Commission, SEIA state market reports, NREL solar resource maps, EnergySage cost benchmarks, Eversource Energy and Unitil rate schedules.