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The residential solar tax credit (Section 25D) expired December 31, 2025. But the commercial ITC (Section 48/48E) is still alive — offering 30% base + up to 70% with bonus adders. Combined with MACRS depreciation and NH's high commercial rates ($0.20-$0.28/kWh), the economics for business solar have never been stronger.
30-70%
ITC Credit
20%
Bonus Depreciation
$0.20-$0.28
NH Comm. Rate/kWh
4-5 yr
Typical Payback
Homeowners lost their federal tax credit. Businesses still have it. Here is the side-by-side comparison showing why commercial solar is where the incentives remain.
| Feature | Residential | Commercial |
|---|---|---|
| Federal Tax Credit | Section 25D — EXPIRED Dec 31, 2025 | Section 48/48E — ACTIVE until July 4, 2026 |
| Credit Rate | 0% (dead) | 30% base + up to 40% in adders |
| MACRS Depreciation | Not available | 5-year + 20% bonus (2026) |
| NH State Solar Rebate | SB 303 — EXPIRED (2024) | No state rebate — federal only |
| Net Metering (NEM 2.0) | Up to 100 kW | Up to 1 MW (group NEM available) |
| C-PACE Financing | Not available | Available in opted-in municipalities |
NH State Solar Rebate is Gone
The NH state solar rebate program (SB 303) has expired. There is no state-level solar rebate for residential or commercial installations. The federal Section 48/48E ITC, MACRS depreciation, and net metering are the primary incentives remaining for NH commercial solar in 2026.
The commercial ITC starts at 30% and can reach up to 70% with qualifying bonus adders. Projects must begin construction before July 4, 2026.
Base ITC: 30%
Available to all qualifying commercial projects
Domestic Content Bonus: +10%
US-manufactured panels, inverters, racking. FEOC deadline July 4, 2026
Energy Community Bonus: +10%
Projects in areas with retired coal plants or high fossil fuel employment
Low-Income Bonus: +10-20%
+10% for low-income communities, +20% for low-income residential projects
The third-party system owner (financing company) claims the ITC, NOT the installer. Ownership structure determines who benefits:
Business Owns (Cash/Loan/C-PACE)
The business claims the 48/48E ITC on their federal tax return. They also claim MACRS depreciation. Requires sufficient tax liability to monetize.
Third-Party Owns (PPA/Lease)
The PPA provider or lessor claims the ITC. Savings are passed to the business through lower energy rates. Best for nonprofits and entities with no tax liability.
MACRS allows businesses to depreciate the full cost of a commercial solar system over 5 years — far shorter than the 25+ year lifespan. In 2026, you get an additional 20% bonus depreciation in Year 1. This drops to 0% in 2027.
| Year | MACRS Rate | Deduction | Tax Savings (25%) |
|---|---|---|---|
| 1 | 20% bonus + 20% MACRS | $74,800 | $18,700 |
| 2 | 32% | $35,904 | $8,976 |
| 3 | 19.2% | $21,542 | $5,386 |
| 4 | 11.52% | $12,926 | $3,232 |
| 5 | 11.52% | $12,926 | $3,232 |
| 6 | 5.76% | $6,463 | $1,616 |
| Total | $164,561 | ~$41,142 | |
2026 vs 2027: Bonus depreciation drops from 20% to 0% in 2027. A 100 kW system placed in service in 2026 receives approximately $4,000 more in Year 1 tax savings compared to the same system in 2027.
Pricing varies by system size. Larger systems benefit from economies of scale. All prices are before incentives.
25-100 kW
$2.20-$2.80/W
Example: 50 kW system
$110,000-$140,000
Before 48/48E ITC + MACRS
100-500 kW
$1.80-$2.40/W
Example: 250 kW system
$450,000-$600,000
Before 48/48E ITC + MACRS
500+ kW
$1.40-$2.00/W
Example: 1,000 kW system
$1,400,000-$2,000,000
Before 48/48E ITC + MACRS
NH-Specific Factors Affecting Price
C-PACE (Commercial Property Assessed Clean Energy) is available in opted-in NH municipalities. It provides 100% financing with 20-25 year terms that transfer with property ownership.
No upfront cost, guaranteed savings, ITC passed through as lower rates
Lower long-term savings, no MACRS benefit for business
Best for: Nonprofits, public entities, cash-constrained businesses
No upfront cost, business claims ITC + MACRS, 20-25 year terms, transfers with property sale
Must be in opted-in municipality, property tax lien, longer payback
Best for: Commercial property owners in participating NH towns
Business owns system, claims ITC + MACRS, highest long-term savings
Requires sufficient tax liability, debt service during payback
Best for: Profitable businesses with strong tax appetite
Maximum savings, no interest, full ITC + MACRS benefit
Large capital outlay, opportunity cost of capital
Best for: Well-capitalized businesses seeking maximum ROI
C-PACE: Check Your Municipality
C-PACE is not available statewide in NH — municipalities must opt in. Contact your town or city administration to confirm C-PACE participation. Major NH cities and towns have been adopting C-PACE at an increasing rate. If your municipality has not opted in, a commercial loan or PPA may be the best alternative.
New Hampshire NEM 2.0 allows commercial systems up to 1 MW. Export credits cover supply, transmission, and a portion of distribution charges.
100%
Supply Charges
Full credit for energy supply component
100%
Transmission Charges
Full credit for transmission component
25%
Distribution Charges
Partial credit for distribution component
Particularly valuable for businesses with multiple locations on the same utility. A single solar installation can offset electricity costs across several meters.
Also allows landlords to install solar and distribute credits to commercial tenants, or municipalities to share credits across public buildings.
A 100 kW system at $2.20/W with a 40% effective ITC (30% base + 10% domestic content) and MACRS depreciation.
Note: This example assumes a 40% ITC (30% base + 10% domestic content bonus), 25% marginal tax rate for MACRS, and $0.24/kWh average commercial rate with 2% annual rate escalation. Actual results depend on system production, utility rate, tax situation, and financing terms. Group net metering and energy community adders could further improve returns.
Yes. The Section 48/48E commercial Investment Tax Credit is still available for commercial solar projects that begin construction before July 4, 2026. The base rate is 30%, with bonus adders for domestic content (+10%), energy community (+10%), and low-income projects (+10-20%) that can stack up to 70%. This is entirely separate from the residential 25D credit which expired December 31, 2025. For commercial projects, the entity that owns the system claims the ITC — if a third-party financing company owns the panels (PPA or lease), they claim the credit and pass savings through as lower rates.
Neither the installer nor the business necessarily claims the ITC. The entity that OWNS the solar system claims the Section 48/48E ITC. If a business buys the system outright (cash or loan), the business claims the credit. If the project uses a PPA or lease, the third-party developer/financing company that owns the panels claims the ITC and passes savings to the business through lower rates. The installer never claims the ITC — only the system owner does.
C-PACE (Commercial Property Assessed Clean Energy) allows commercial property owners to finance solar installations with no upfront cost. The financing is repaid through a voluntary property tax assessment over 20-25 years. Key advantages: 100% financing, the assessment transfers with property ownership if sold, and the business still owns the system (meaning they claim the ITC + MACRS). C-PACE is available in New Hampshire municipalities that have opted into the program. Check with your town to confirm participation.
When combining MACRS with the ITC, the depreciable basis is reduced by half the ITC amount. For example, with a $220,000 system and 30% ITC ($66,000 credit), the depreciable basis is $220,000 - ($66,000 x 50%) = $187,000. In 2026, the 20% first-year bonus depreciation allows $37,400 (20% of $187,000) to be deducted in Year 1, with the remaining $149,600 spread over 4 years. In 2027, bonus depreciation drops to 0%, making 2026 the better year to act.
New Hampshire NEM 2.0 allows commercial systems up to 1 MW. Export credits are calculated at 100% of supply charges plus 100% of transmission charges plus 25% of distribution charges. Group net metering is available, allowing businesses to share credits across multiple meters on the same utility. Credits roll over monthly and are trued up annually. All three NH utilities — Eversource, Liberty, and Unitil — participate in NEM 2.0.
New Hampshire commercial electric rates range from approximately $0.20 to $0.28 per kWh depending on the utility and rate class. Eversource NH commercial rates average around $0.24/kWh, Liberty around $0.22/kWh, and Unitil around $0.26/kWh. These are among the highest in the nation, which makes commercial solar economics particularly strong — every kWh your system produces offsets expensive grid electricity.
Complete pricing breakdown for residential and commercial solar in New Hampshire.
Read moreHow to make solar work in NH now that the residential 25D credit is gone.
Read moreThe complete guide to going solar in New Hampshire — updated for 2026 realities.
Read moreThe 48/48E ITC deadline is July 4, 2026. Commercial solar projects take 6-12 months from assessment to operation. Start now to capture the 30-70% tax credit and 20% bonus depreciation before they decrease.
Free assessment. No obligation. We help NH businesses navigate 48/48E, MACRS, C-PACE, and net metering.