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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free QuoteNH small businesses can claim up to 66% in federal tax credits through Section 48/48E ITC (before July 4, 2026), plus MACRS 5-year depreciation with 20% bonus in 2026. NH has no sales tax, NEM 2.0 locked to 2041, and property tax exemption under RSA 72:62. Typical payback: 2-4 years after incentives.
New Hampshire may not have a state solar rebate, but it has structural advantages that neighboring states lack.
NH has no sales tax — period. You pay $0 in state tax on solar equipment, installation labor, and all components. No exemption needed because there is nothing to exempt.
Solar installations are exempt from property tax in ~66% of NH towns that have adopted RSA 72:62. Your solar array will not increase your property tax bill.
Net metering rates are locked through January 1, 2041 by Docket DE 16-576. Your credit rate won't change for 15+ years — rare certainty for financial modeling.
NH eliminated its Business Enterprise Tax (BET) and Business Profits Tax (BPT) thresholds have been raised. Solar savings are not considered taxable income at the state level for most small businesses.
The commercial ITC is stackable. Start with the base rate, then add bonuses for domestic content, energy community, and low-income location.
| Credit Tier | % | Requirement | Notes |
|---|---|---|---|
| Base ITC | 6% | System begins construction before July 4, 2026 | Systems under 1 MW that do NOT meet prevailing wage requirements |
| Full ITC (Prevailing Wage) | 30% | Meet prevailing wage + apprenticeship requirements | Most small business systems qualify — contractors are trained on this |
| + Domestic Content Bonus | 10% | US-manufactured panels, inverters, racking (40% steel, 20% components) | Silfab, Mission Solar, and similar US-made panels qualify |
| + Energy Community Bonus | 10% | Located in a census tract with closed coal/fossil fuel plants or high fossil fuel employment | Check energycommunities.gov — some NH towns qualify (Berlin, parts of Coos County) |
| + Low-Income / Tribal Bonus | 10% | Located in a low-income census tract or on tribal land | Additional 10-20% for qualified locations |
| Maximum Possible | 66% | Requires prevailing wage + domestic content + energy community + low-income location | |
Your solar project must begin construction before July 4, 2026 to qualify for Section 48/48E. "Begin construction" means either starting physical work or paying 5%+ of total project cost (Safe Harbor). Most NH small business installations take 4-8 weeks from contract to completion. Plan accordingly.
Solar equipment qualifies for 5-year MACRS depreciation. In 2026, you also get 20% bonus depreciation in year 1. This drops to 0% in 2027.
Depreciable basis = $50,000 - (50% x $15,000 ITC) = $42,500
| Year | Bonus | Regular MACRS | Total % | Deduction ($42,500 basis) |
|---|---|---|---|---|
| Year 1 | 20% | 16% | 36% | $15,300 |
| Year 2 | — | 25.6% | 25.6% | $10,880 |
| Year 3 | — | 15.36% | 15.36% | $6,528 |
| Year 4 | — | 9.22% | 9.22% | $3,919 |
| Year 5 | — | 9.22% | 9.22% | $3,919 |
| Year 6 | — | 4.61% | 4.61% | $1,960 |
| Total Depreciation | $42,506 | |||
Tax savings at 22% marginal rate: $42,500 x 22% = $9,350 in federal tax savings over 6 years. Combined with the $15,000 ITC, your total federal benefit is $24,350 on a $50,000 system — nearly 49% of the cost.
Representative scenarios based on typical NH small business installations, current 2026 pricing, and actual incentive calculations.
Lincoln, NH | Retail | 15 kW
This ski shop uses significant electricity for lighting, POS systems, and electric baseboard heat in shoulder seasons. Their south-facing roof was ideal for a 15 kW system. Peak production aligns with summer tourist season when the shop sells hiking and biking gear. Winter production is lower but still covers 40% of bills.
Key insight: Seasonal businesses benefit because NEM 2.0 credits roll over — summer overproduction covers winter shortfall.
Manchester, NH | Manufacturing/Hospitality | 40 kW
Breweries are energy hogs — refrigeration, brewing kettles, lighting, and taproom HVAC. This brewery installed a 40 kW system across their flat warehouse roof using ballasted racking. They qualified for the 30% base ITC plus 10% domestic content bonus using Silfab panels. Their Eversource commercial rate of $0.24/kWh makes the payback extremely fast.
Key insight: Energy-intensive businesses like breweries get the fastest payback because their high consumption means every kWh produced directly offsets expensive grid power.
Keene, NH | Hospitality | 20 kW
This historic B&B had concerns about aesthetics but was able to install panels on a rear-facing roof invisible from the street. As a Liberty Utilities customer, they pay $0.24/kWh. The B&B markets its solar installation as an eco-friendly amenity — guests appreciate the sustainability commitment. The 20 kW system covers 100% of annual electricity usage.
Key insight: B&Bs and inns can market solar as a competitive advantage with eco-conscious travelers. Many NH B&B guests specifically seek green lodging.
100% supply + 100% transmission + 25% distribution
Results in credits worth approximately 85% of the retail rate. Not 1:1 — but still strong.
1 MW for group net metering
Sufficient for virtually all small businesses. Group net metering available for multi-meter properties.
Credits roll over. Cash out at end of billing cycle once per year.
Seasonal businesses benefit — summer overproduction covers winter months.
NEM 2.0 locked through January 1, 2041 (Docket DE 16-576)
15+ years of certainty for your business financial planning.
At 85% of retail, a commercial customer paying $0.22/kWh receives credits worth about $0.187/kWh. When modeling your ROI, use the credit rate, not the retail rate. Your installer should provide production estimates using the NEM 2.0 credit rate. If they show 1:1 savings, they are overstating your return — push back and ask for the correct calculation.
Calculate your annual kWh consumption and average rate. This determines your system size. Most NH utilities provide usage history online.
Request quotes from contractors experienced with commercial installations and prevailing wage compliance. Ask for ITC and MACRS calculations specific to your tax situation.
To get the full 30% ITC (vs. 6%), your contractor must pay prevailing wages and use registered apprentices. Ask for their prevailing wage certification.
Visit energycommunities.gov to check if your business location qualifies for the 10% energy community bonus. Ask about US-made panel options for the 10% domestic content bonus.
Sign a contract and make a 5%+ deposit (Safe Harbor) or start physical work before the deadline. This locks in your ITC eligibility even if the system is completed later.
Yes. The Section 48/48E Investment Tax Credit is available for commercial and business solar installations that begin construction before July 4, 2026. The base rate is 6%, increasing to 30% with prevailing wage compliance. Additional bonuses for domestic content (+10%), energy community (+10%), and low-income location (+10-20%) can bring the total to 50-70%. This is a business tax credit claimed on your federal tax return.
MACRS allows you to depreciate the cost of your solar system over 5 years on your federal tax return. In 2026, you can take 20% bonus depreciation in year 1, plus the regular MACRS schedule. The depreciable basis is the system cost minus 50% of the ITC. For a $50,000 system with 30% ITC ($15,000), the depreciable basis is $50,000 - $7,500 = $42,500. This creates significant tax savings in years 1-5.
NH commercial net metering follows the same NEM 2.0 formula as residential: 100% supply + 100% transmission + 25% distribution, resulting in credits worth approximately 85% of the retail rate. Commercial rates average $0.22/kWh in NH. Credits roll over monthly and can be cashed out annually. The system cap is 1 MW for group net metering.
No. New Hampshire repealed its state solar rebate program through SB 303 in 2024. There is no state rebate for residential or commercial solar. The only financial incentives are federal (Section 48/48E ITC, MACRS depreciation) and the property tax exemption under RSA 72:62.
Small commercial systems (10-50 kW) cost $2.00-$2.50 per watt installed in NH. A 25 kW system would cost approximately $50,000-$62,500 before incentives. After the 30% ITC and MACRS depreciation, the effective net cost drops to roughly 40-45% of the gross price. NH has no sales tax, which saves an additional 5-7% compared to neighboring states.
For systems under 1 MW, you need to pay prevailing wages and use registered apprentices to qualify for the full 30% ITC. Without prevailing wage compliance, the credit drops to 6%. Most NH solar contractors are already set up to meet these requirements. Ask your installer explicitly about prevailing wage compliance before signing a contract.
Yes, if your roof has enough space. NH NEM 2.0 allows systems up to 1 MW. Credits roll over month to month. Many small businesses can offset 80-100% of their annual electricity with a properly sized system. Note that NEM credits are worth ~85% of retail, so a system that produces 100% of your kWh usage will offset roughly 85-90% of your dollar cost.
The solar system increases property value and can be transferred with the business sale. If you claimed ITC and sell within 5 years, there may be ITC recapture — the IRS claws back a percentage of the credit based on how early you sell. After 5 years, no recapture applies. Consult your tax advisor for specifics.
Section 48/48E ITC deadline is July 4, 2026. Start now to lock in up to 66% in federal tax credits plus MACRS depreciation.