Last updated: January2025
Written by
Jamie Smith
Homeowners who go solar in New Hampshire can save about $6,622 on their solar installation through the federal tax credit and other solar incentives offered to residents.
Those who wish to live more sustainably and invest in the benefits of solar power in the Granite State have a few incentive options to save them some money outright. Not to mention the plentiful savings seen on electricity bills each month thanks to solar panels that can make your solar panels pay for themselves faster.
Incentive | Estimated average annual savings | Eligibility | About |
|---|---|---|---|
Federal solar tax credit | $6,622 | All tax-paying U.S. citizens | Tax credit equal to 30% of installation costs, applied to federal income taxes |
Solar property tax exemption | $584 | Residents of participating towns/municipalities | A 100% property tax exemption is offered to residents of select towns/municipalities who install solar |
Quick Facts:
Value: 30% of solar installation costs
Frequency: One-time tax credit, rollover for five years
How to apply: File IRS Form 5695 with annual tax return
Homeowners in New Hampshire who invest in solar energy can file for the 30% federal solar tax credit. The credit is equal to 30% of the total solar system cost and is applied to federal income tax liability.
The average solar system in New Hampshire will earn a federal tax credit worth $6,622. However, this incentive is not an upfront payment. The federal tax credit reduces your income tax liability, and you won’t see the benefits of the tax credit until you file your taxes for the year.
If your liability is less than the value of the federal solar investment tax credit (ITC), it will be reduced to $0, and the remaining credit value will be applied to next year’s taxes. The credit can roll over for five years without an income limit.
Quick Facts:
Value: 100% property tax exemption in select cities/municipalities
Frequency: Annually
How to apply: Fill out Form PA-29 before April 15th of the filing year
The state of New Hampshire allows a property tax exemption for homeowners who install solar but leaves it up to towns and municipalities to decide on provisions for this exemption. Solar panel systems usually increase property value. Without an exemption, solar panels would also increase what you pay for your annual property taxes.
When you take the median home price, and average property tax value into account for New Hampshire, an average homeowner can save $584 each year on property taxes thanks to the solar tax exemption!
Quick Facts
The average cost of electricity is $0.23 per kWh in New Hampshire
Utilities credit customers for excess solar sent to the grid, but at a rate slightly lower than the full retail rate.
Rules for New Hampshire’s net metering program can get quite complicated, but we’re here to break it all down for you. Essentially, you’ll get the full value out of any solar energy your home uses, but solar energy you export to the grid will be valued at a lower rate.
While this solar buyback plan doesn’t provide the highest solar savings possible, it can still help lower your electric bill substantially.
Solar panel systems in New Hampshire cost about $2.83 per watt of solar installed, or a total cost of $22,074 on average before any incentives are applied. Once you consider the federal tax credit, the cost of home solar in New Hampshire falls to $15,451.
Federal tax credit: $22,074 x 30% = $6,622
Total savings: $6,622
Effective system cost: $22,074 - $6,622 = $15,451
If you pair your solar project with energy storage, that could add on another $10,000 to your total cost – but luckily the federal tax credit applies to solar batteries too!
The total cost of a solar panel installation will depend on a few factors, like how many solar panels you install, the installer used, and the characteristics of your roof.
The payback period for solar projects in New Hampshire is a little over 8 years, which means that solar here is an excellent investment. The average solar payback period is typically between 10 and 15 years.
Solar panels can pay for themelves quickly in New Hampshire because it’s located in New England, which has some of the highest electric rates in the country. Those high electricity bills make solar panels worth considering, and you’ll get the added bonus of powering your home with clean energy.
But, we’d like to see New Hampshire offer more low-income solar incentives to make solar accessible to all New Hampshirites — and this might be on the horizon! New Hampshire is set to receive over $43 million dollars in funding through the Environmental Protection Agency’s (EPA) Solar For All initiative, to target low-income and underserved households across the state. Be on the lookout for new programs, or the expansion of existing ones in the near future.
The best way to know if solar panels are right for you is to work with solar companies in your area. That’s where SolarReviews comes in, we can help connect you with the best solar installers in New Hampshire so you can start saving!
Jamie is a Content Writer and researcher at SolarReviews. A recent graduate of La Salle University in Philadelphia, Jamie earned her B.S. in communications with a concentration in journalism, mass media, and public relations.
Jamie has previously worked at a marketing company where she had the opportunity to highlight and promote small bu...
Learn more about Jamie Smith