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Get a Free QuoteNH solar delivers 12-16% effective annual ROI vs. the S&P 500's historical 10%. No federal tax credit, no state rebate — but $0.27/kWh rates, NEM 2.0 locked through 2041, and zero sales tax still make solar a compelling financial play.
12-16%
NH Solar ROI
~10%
S&P 500 Avg
$24,240
8 kW System Cost
$71K+
25-Year Savings
Let's be upfront: New Hampshire solar in 2026 has some headwinds. The federal 25D residential tax credit expired December 31, 2025. SB 303 permanently repealed the state solar rebate in 2024. And NEM 2.0 credits at ~85% of retail are not the full 1:1 that some states still offer.
Despite these limitations, NH solar remains a strong financial investment because of three factors that matter more than incentives:
$0.27/kWh
NH avg electric rate — 48% above national average
Through 2041
NEM 2.0 credit rates locked by Docket DE 16-576
0% Sales Tax
NH has no state sales tax on anything, including solar
Higher electric rates mean faster payback. Every kilowatt-hour your panels produce is worth $0.27 in avoided costs (or ~$0.23 as a NEM credit when exported). That's the engine that drives NH solar returns — not incentives.
Here's the transparent calculation for a typical 8 kW NH solar installation:
With a net cost of $24,240 and annual savings of $2,563-3,147 (depending on property tax exemption), the effective ROI is:
Without Property Tax Exemption
~12.2%
$2,563 / $24,240 + rate escalation
With RSA 72:62 Exemption
~16.1%
$3,147 / $24,240 + rate escalation
ROI includes 2.5% annual electric rate escalation over 25-year system life. Effective return increases each year as utility rates rise.
A direct comparison of putting $24,240 into solar panels vs. an S&P 500 index fund:
| Metric | NH Solar | S&P 500 | Advantage |
|---|---|---|---|
| Historical Annual Return | 12-16% effective | ~10% (nominal) | Solar |
| After-Tax Return | 12-16% (tax-free savings) | ~7-8% (after capital gains) | Solar |
| Volatility | Near zero (sun shines predictably) | High (20-40% drawdowns) | Solar |
| Inflation Protection | Yes (electric rates rise 2-4%/yr) | Historically yes | Solar |
| Liquidity | Illiquid (tied to your home) | Highly liquid (sell anytime) | Stocks |
| Minimum Hold Period | 9.5 years to break even | No minimum | Stocks |
| Property Value Impact | +$15,000-20,000 home value | No property impact | Solar |
| Risk of Loss | Near zero if panels produce | 10-40% in any given year | Solar |
| Requires Home Ownership | Yes | No | Stocks |
| Setup Complexity | Moderate (installation, permits) | Low (open brokerage account) | Stocks |
How does $24,240 grow over 25 years? Solar cumulative savings vs. S&P 500 growth (assumes 10% nominal stock return, 2.5% annual rate escalation for solar):
| Year | Solar Net Value | S&P 500 Value | Notes |
|---|---|---|---|
| 0 | -$24,240 | -$24,240 | Initial investment |
| 5 | -$11,490 | -$9,195 | Solar still paying back |
| 10 | +$3,630 | +$14,830 | Solar breakeven reached |
| 15 | +$22,540 | +$45,090 | Solar generating pure profit |
| 20 | +$45,000 | +$83,430 | Stocks pull ahead on total value |
| 25 | +$71,600 | +$132,020 | End of panel warranty period |
The S&P 500 shows higher total dollar returns at 25 years ($132K vs $71K). But this comparison misses critical factors:
Not all NH solar installations deliver the same return. Here's what moves the needle:
Your utility determines your base electric rate and NEM credit value — both directly affect solar ROI:
Retail rate: $0.25/kWh
NEM credit: $0.21/kWh (~85% retail)
Market share: ~71% of NH
Estimated Solar ROI: ~12-15%
Retail rate: $0.26/kWh
NEM credit: $0.22/kWh (~85% retail)
Market share: ~11% of NH
Estimated Solar ROI: ~13-16%
Retail rate: $0.24/kWh
NEM credit: $0.20/kWh (~85% retail)
Market share: ~6% of NH
Estimated Solar ROI: ~11-14%
Retail rate: $0.22/kWh
NEM credit: $0.19/kWh (~85% retail)
Market share: ~12% of NH
Estimated Solar ROI: ~10-13%
The smartest way to think about solar is not “solar OR stocks” — it's “solar AND stocks.” Solar is a unique asset class that is uncorrelated with market returns:
Think of solar as the first $24K of your investment portfolio. It provides a guaranteed, tax-free return on an expense you cannot avoid (electricity). Then invest everything above that threshold in index funds, bonds, or other assets.
Solar is not always the right answer. Here are situations where index funds are clearly better:
You cannot install panels on a property you don't own. Consider community solar or CPCNH as alternatives.
Solar adds home value but you may not recoup the full investment at resale if you sell too soon.
Adding $5-10K for re-roofing + panel removal/reinstall extends payback by 2-3 years.
Low consumption means the fixed cost of installation delivers a lower ROI per dollar invested.
NH is 84% forested. If your roof gets less than 4 hours of direct sun, production drops dramatically.
Solar savings are real but illiquid. You cannot sell panels for cash in an emergency.
Full worth-it analysis with honest NH math
Honest guide — shade, small bills, bad roof
City-by-city pricing data
How much solar adds to your NH home value
Financing options and ROI impact
Post-ITC solar economics in NH
NH solar panels deliver approximately 12-16% annual ROI based on current conditions: $3.03/W average installed cost, $0.27/kWh average electric rate, NEM 2.0 credits at ~85% retail rate locked through 2041, RSA 72:62 property tax exemption, and no sales tax. The payback period is approximately 9.5 years for an 8 kW system costing $24,240 — after which the system generates free electricity for 15+ more years.
For NH homeowners, solar offers several advantages over stocks: a predictable 12-16% effective return vs S&P 500 historical average of ~10%; guaranteed savings (you will use electricity regardless); no market volatility; protection against rising utility rates; property value increase of $15,000-20,000; and the return is tax-free (you do not pay taxes on electricity you did not buy). The main disadvantage is illiquidity — you cannot sell your solar panels like stocks.
Yes. The federal 25D ITC expired December 31, 2025, adding ~$7,272 to the net cost of an 8 kW system. However, NH still has $0.27/kWh electric rates (48% above national average), NEM 2.0 credits locked through 2041, no sales tax, and available property tax exemptions. The payback period increased from ~6.5 years (with ITC) to ~9.5 years (without), but the 25-year net savings remain above $65,000.
A high-yield savings account currently offers 4-5% APY. NH solar delivers an effective 12-16% return that is not subject to income tax (savings accounts are taxed). Additionally, solar provides a hedge against inflation — as electric rates rise 2-4% annually, your solar savings increase, while savings account rates may drop when the Fed cuts rates.
Key factors: (1) Your electric rate — higher rates mean faster payback. Unitil customers at $0.26/kWh may see different returns than NHEC customers at $0.22/kWh. (2) System size vs consumption — oversized systems export more at 85% NEM credit, reducing effective return. (3) Roof orientation — south-facing at 30° tilt is optimal for NH. (4) Property tax exemption — towns that have adopted RSA 72:62 (~66%) save homeowners ~$584/year. (5) Shade — NH is 84% forested, so tree shading is a real concern.
If you own your NH home, plan to stay 5+ years, have a suitable roof, and pay $100+/month in electricity, solar is likely the better choice. It provides a higher effective return (12-16% vs 10%), is tax-free, and protects against utility rate increases. If you rent, plan to move soon, or have a shaded/north-facing roof, index funds are the better option. Consider solar as the first $24K of your portfolio — guaranteed returns on an expense you cannot avoid.
Every NH home is different. Get a free custom analysis showing your exact solar ROI based on your roof, utility, consumption, and town tax exemption status.