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Get a Free QuoteThe residential solar ITC (Section 25D) expired December 31, 2025. New Hampshire repealed its state solar rebate in 2024 (SB 303). There is no state income tax. NH homeowners who buy solar with cash or a loan get $0 in federal or state benefits. But there is a legal, congressionally-designed path to still access the 30% credit — through third-party ownership under Section 48/48E.
30%
ITC Rate (Section 48)
$9,999
Example ITC (11 kW)
Jul 4, 2026
Construction Deadline
$0
NH State Rebate
A 64-year-old tax code provision — not a loophole
Section 48 of the Internal Revenue Code has existed since 1962. It provides an Investment Tax Credit (ITC) to the owner of qualifying energy property — solar panels, wind turbines, battery storage, and other energy systems. The critical word in the statute is “owner.”
For decades, two parallel pathways existed for solar tax credits. Section 25D let individual homeowners claim the ITC on their personal tax return when they purchased solar with cash or a loan. Section 48 let businesses and financing companies claim the ITC when they owned solar systems — including systems installed on residential rooftops through leases and PPAs.
On July 4, 2025, the OBBBA (One Big Beautiful Bill Act) eliminated Section 25D. The homeowner pathway is dead. But Section 48 — the business/TPO pathway — remains active for projects beginning construction before July 4, 2026.
Why this matters more in New Hampshire than almost any other state
New Hampshire has no state solar rebate (SB 303 repealed it in 2024), no state income tax (so no state solar tax credit), and now no federal residential ITC (25D expired). NH cash buyers receive $0 in incentives from any level of government. Section 48 through a TPO is literally the only remaining path to any federal benefit for NH residential solar.
This is not a loophole. Congress designed it this way.
Section 48 was created to encourage capital deployment into energy infrastructure. Financing companies invest billions in solar systems, claim the ITC as intended by the tax code, and pass savings to homeowners through lower monthly payments. This mechanism has been reviewed and upheld by the IRS, Treasury, and Congress for over six decades.
Section 48E, created by the Inflation Reduction Act (August 2022), extended the investment tax credit with technology-neutral rules. Together, Sections 48 and 48E provide the legal framework that allows third-party solar financing to continue delivering federal tax benefits — even after Section 25D's expiration.
Two different tax code sections, two different claimants, two very different outcomes in 2026.
| Feature | Section 25D (DEAD) | Section 48/48E (ACTIVE) |
|---|---|---|
| Tax code section | Section 25D | Section 48 / 48E |
| Who claims the credit | Homeowner (on personal return) | System owner / TPO (financing company) |
| IRS form used | Form 5695 | Form 3468 |
| Credit rate | 30% (was) | 30% (still active) |
| Current status | EXPIRED Dec 31, 2025 | ACTIVE through July 4, 2026 |
| Applies to | Cash or loan purchases | Lease, PPA, or TPO models |
| MACRS depreciation | Not available to homeowners | 5-year accelerated + 20% bonus (2026) |
| Domestic content bonus | N/A (credit is dead) | +10% with FEOC-compliant panels |
| Energy community bonus | N/A (credit is dead) | +10% if project in qualifying area |
| Net effect for homeowner | $0 federal benefit | Lower monthly payment via TPO savings |
Tax code section
25D
Section 25D
48/48E
Section 48 / 48E
Who claims the credit
25D
Homeowner (on personal return)
48/48E
System owner / TPO (financing company)
IRS form used
25D
Form 5695
48/48E
Form 3468
Credit rate
25D
30% (was)
48/48E
30% (still active)
Current status
25D
EXPIRED Dec 31, 2025
48/48E
ACTIVE through July 4, 2026
Applies to
25D
Cash or loan purchases
48/48E
Lease, PPA, or TPO models
MACRS depreciation
25D
Not available to homeowners
48/48E
5-year accelerated + 20% bonus (2026)
Domestic content bonus
25D
N/A (credit is dead)
48/48E
+10% with FEOC-compliant panels
Energy community bonus
25D
N/A (credit is dead)
48/48E
+10% if project in qualifying area
Net effect for homeowner
25D
$0 federal benefit
48/48E
Lower monthly payment via TPO savings
A step-by-step breakdown of how Section 48 tax benefits translate into real savings on your monthly bill.
A third-party owner (financing company) purchases a solar system — for example, an 11 kW system at $3.03/W costs approximately $33,330. The TPO owns the panels, inverter, and racking. They contract with an installer (like NuWatt) to mount the system on your roof.
The TPO files IRS Form 3468 and claims the 30% Investment Tax Credit on the system cost. On a $33,330 system, that is $9,999 in federal tax credits. This goes directly to the financing company — not to you, and not to the installer. The critical word in the tax code is “owner.”
The TPO also claims Modified Accelerated Cost Recovery System (MACRS) depreciation on a 5-year schedule. In 2026, this includes a 20% first-year bonus. On our $33,330 example, MACRS provides roughly $5,300 in additional tax benefits over 5 years. This is a commercial tax benefit unavailable to individual homeowners.
The TPO receives approximately $15,299 in combined tax benefits ($9,999 ITC + ~$5,300 MACRS). These savings are baked into your lower monthly lease payment or per-kWh PPA rate. In New Hampshire — which has no state solar rebate and no state income tax — this TPO pathway is the only way to capture any federal benefit for residential solar in 2026.
System Cost
$33,330
25 x Silfab 440W
Section 48 ITC
-$9,999
30% to TPO
MACRS (5-yr)
-$5,300
20% bonus in 2026
TPO Tax Benefits
~$15,299
Passed to you as savings
Three system sizes showing how Section 48 ITC and MACRS translate to real savings for New Hampshire homeowners. Based on $3.03/W average NH pricing.
Smaller homes, 600–800 sq ft roof
Average NH home, covers full usage
Large homes, EV charging, heat pump
Not all financing captures the ITC. Here is which options benefit from Section 48 and which do not.
Fixed monthly payment for 20–25 years. The TPO owns the system and claims the 30% ITC + MACRS. You pay a predictable monthly amount that is lower than your current electric bill.
Advantages
Limitations
NH Note: NH NEM 2.0 credits at ~85% retail — TPO receives bill credits on your behalf, reflected in lower payments.
You pay per kilowatt-hour at a rate lower than your utility rate. The TPO owns the system, claims Section 48 ITC + MACRS, and sells you the power at a discounted rate.
Advantages
Limitations
NH Note: At $0.13–0.17/kWh vs $0.27/kWh NH average, you save 37–52% on solar electricity from day one.
NuWatt’s third-party ownership program. The financing company owns the system, claims Section 48 ITC + MACRS + domestic content bonus. Requires FEOC-compliant Silfab 440W panels. Coming soon to New Hampshire.
Advantages
Limitations
NH Note: Propel is not yet available in NH — currently offered in ME and TX. When it launches in NH, it will include Silfab 440W FEOC panels for the full 30% ITC + 10% domestic content bonus.
You take a loan at 6–8% APR (or pay cash) and own the system. Because you own it, there is NO Section 48 benefit — and Section 25D is dead. You get $0 in federal tax credits. NH also has no state solar rebate (SB 303 repealed it in 2024).
Advantages
Limitations
NH Note: With no federal credit and no state rebate, NH cash buyers pay 100% of system cost with $0 in incentives. Payback extends to 15–17+ years at current rates.
Not all panels qualify for the full ITC stack. Here is what you need to know.
FEOC stands for Foreign Entity of Concern. Under guidance from the Treasury Department and IRS, solar panels manufactured by or containing critical components from FEOC-designated entities (primarily Chinese-owned companies) face restrictions on certain ITC bonuses.
Standard Section 48/48E credit
FEOC-compliant panels required
Project in qualifying census tract
FEOC Compliance Deadline: July 4, 2026
After this date, projects using non-FEOC panels may face additional restrictions beyond losing the domestic content bonus. If you are considering a TPO arrangement, verify that the financing company plans to use FEOC-compliant panels before signing.
Misinformation about the solar tax credit is rampant. Here are the facts.
“Section 48 is a loophole for solar companies.”
Section 48 has been part of the IRS tax code since 1962 — 64 years. It was specifically designed to encourage investment in energy property by providing an ITC to the entity that owns the qualifying system. Congress intentionally structured it so that financing companies could deploy capital into solar at scale. There is nothing hidden, creative, or exploitative about it.
“I get the 30% tax credit directly on my tax return.”
No. With a lease or PPA arrangement, the third-party owner (TPO) claims the ITC on their corporate tax return using IRS Form 3468. You benefit indirectly through lower monthly payments or a reduced per-kWh rate. If you want to claim the credit directly, you would need to purchase the system outright — but Section 25D is dead, so you would receive $0.
“New Hampshire’s lack of incentives means solar doesn’t make sense.”
NH has the highest electric rates in New England outside of RI and CT. At $0.27/kWh average, the savings from displacing grid electricity are substantial. Section 48 TPO arrangements provide the only path to a federal tax benefit in 2026. A PPA at $0.13–0.17/kWh vs $0.27/kWh utility rates saves 37–52% from day one — with $0 down.
“Solar leases are always a bad deal.”
This advice was accurate when Section 25D was alive. Homeowners could claim 30% themselves, making cash or loan purchases clearly superior. In 2026, the calculus has changed. With $0 in homeowner tax credits and no NH state rebate, leases and PPAs that leverage Section 48 can deliver better economics than a loan at 6–8% APR with no ITC. In New Hampshire, where electric rates average $0.27/kWh, a PPA at $0.13–0.17/kWh provides significant day-one savings.
“The installer claims the tax credit.”
The installer (contractor) does not claim the ITC. The credit goes to the entity that owns the qualifying energy property — the financing company or TPO. The installer is paid for labor and materials. This is a common misunderstanding that leads homeowners to ask the wrong questions during the sales process.
“I should wait for Congress to bring back Section 25D.”
The OBBBA (One Big Beautiful Bill Act), signed July 4, 2025, eliminated Section 25D with no sunset clause and no scheduled return. There is no pending legislation to restore it. Meanwhile, Section 48/48E itself has a construction deadline of July 4, 2026. Waiting risks losing access to both the homeowner credit (already gone) and the TPO credit (expiring soon).
The construction deadline for Section 48/48E is approaching. Here is the timeline every NH homeowner needs to understand.
New Hampshire eliminates its state solar rebate program. NH homeowners lose their last state-level incentive for solar.
Section 48E created with technology-neutral ITC rules. 25D extended through 2032 (at the time).
Residential solar ITC killed immediately. NH homeowners who buy with cash or loan receive $0 from federal AND state government. Section 48/48E given a 1-year grace period.
You are here. TPO arrangements signed now have ample time to begin construction before the deadline. NH utility interconnection runs 4–8 weeks (Eversource, Liberty, Unitil).
Projects must “begin construction” (physical work test or 5% safe harbor) before this date. After this, NH homeowners may have zero pathways to any federal solar benefit.
Meaningful physical work begins at the project site or at a factory for components specifically designed for the project. Mounting hardware installation, foundation work, or panel manufacturing orders count. Preliminary activities (permits, surveys, engineering) do not.
The taxpayer (TPO) incurs at least 5% of the total project cost before the deadline. On a $33,330 system, that is approximately $1,667 in binding commitments. Equipment orders with non-refundable deposits typically satisfy this test. Continuous construction or continuous efforts must follow.
Practical impact: If you sign a TPO agreement and the financing company places equipment orders before July 4, 2026, the project qualifies. The system does not need to be installed by that date — it must be placed in service within 4 years of beginning construction.
10 questions we hear most from New Hampshire homeowners about the solar ITC in 2026.
Section 48 is the Investment Tax Credit (ITC) provision that has existed in the IRS tax code since 1962. It provides a tax credit to the owner of qualifying energy property — such as solar panels. Section 25D was the residential energy credit that allowed individual homeowners to claim the ITC on their personal tax return. Section 25D expired on December 31, 2025 (eliminated by the OBBBA). Section 48/48E remains active for projects beginning construction before July 4, 2026. The key difference: 48 goes to the system owner (the financing company in a lease/PPA), while 25D went to the homeowner.
New Hampshire is in a uniquely challenging position for solar incentives. SB 303 (2024) repealed the state solar rebate. There is no state income tax, so no state solar tax credit. And Section 25D is dead, so cash buyers get $0 from the federal government. Section 48 through a TPO arrangement is literally the only path to any federal benefit for NH residential solar in 2026. Without it, NH homeowners pay 100% of system cost with zero incentive offset.
New Hampshire NEM 2.0 provides bill credits at approximately 85% of retail rate (100% supply + 100% transmission + 25% distribution). These credits are locked through 2041. When a TPO owns the system on your roof, the NEM credits flow to your utility account and reduce your electric bill. The TPO prices their lease or PPA knowing that you will receive these bill credits. This makes NH NEM 2.0 compatible with Section 48 TPO arrangements.
The IRS defines “begin construction” through two safe harbors: (1) Physical Work Test — meaningful physical work begins at the site (foundation, mounting hardware installation), or (2) Five Percent Safe Harbor — at least 5% of the total project cost has been incurred. For residential TPO systems, this typically means signing a contract and having the TPO place equipment orders before July 4, 2026. Projects must be placed in service within 4 years of beginning construction.
FEOC stands for Foreign Entity of Concern. Under the IRA and subsequent guidance, solar panels manufactured by or containing components from a Foreign Entity of Concern (primarily Chinese-owned companies) may lose eligibility for certain ITC adders, particularly the 10% domestic content bonus. FEOC-compliant panels like the Silfab 440W are manufactured without FEOC components, ensuring eligibility for the full ITC stack. The FEOC compliance deadline is July 4, 2026.
Not yet. NuWatt Propel is currently available in Maine and Texas. Expansion to New Hampshire is planned. In the meantime, NH homeowners can access Section 48 benefits through standard solar leases and PPAs from other TPO providers. When Propel launches in NH, it will offer FEOC-compliant Silfab 440W panels, qualifying for the full 30% ITC + 10% domestic content bonus.
Under RSA 72:62, municipalities that have adopted the exemption exclude the value of solar energy systems from property tax assessments. Approximately 66% of NH towns participate. Whether this exemption applies to a TPO-owned system on your property depends on how your town interprets the statute. In most cases, the exemption still benefits the homeowner because the assessed value of the home does not increase. Verify with your local assessor.
In New Hampshire, utility interconnection approval typically takes 4–8 weeks for residential systems. Eversource, Liberty, and Unitil each have their own application processes. The Section 48 deadline requires “beginning construction” (not completion) by July 4, 2026, so interconnection does not need to be finalized by the deadline. However, starting the process in March–April 2026 gives ample buffer to ensure the TPO can place orders and meet the 5% safe harbor.
Most lease and PPA agreements include a buyout option after a certain period (typically 5–7 years). The buyout price is usually based on fair market value at the time. By year 7–10, the fair market value of a depreciated solar system is significantly lower than the original cost. Some homeowners use this strategy: start with a TPO arrangement to capture Section 48 benefits, then buy out at a reduced price.
For projects that begin construction before July 4, 2026, the 30% ITC remains available as long as the project is placed in service within 4 years. After July 4, 2026, new projects may face reduced or eliminated ITC rates depending on future legislation. There is currently no indication that Section 48 will be extended beyond this deadline under the current administration.
Comprehensive guide to solar energy in New Hampshire — costs, incentives, and timeline.
Deep dive into lease vs PPA structures, rates, and contract terms for NH.
Side-by-side financing comparison with 25-year savings projections.
Honest analysis of whether solar still works in NH without Section 25D or state rebate.
City-by-city pricing, system sizes, and cost breakdowns across New Hampshire.
Track launch timing and join the New Hampshire waitlist for NuWatt's upcoming ownership-focused offer.
Section 25D is gone. NH has no state rebate. Section 48/48E is the only path to federal solar benefits — and the clock is ticking. Find out how much you can save with a TPO arrangement that captures the 30% ITC before the July 4, 2026 construction deadline.
Free quote • No obligation • NABCEP-certified installers • Silfab 440W FEOC panels available