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Section 25D expired December 31, 2025. NH's state rebate was repealed in 2024. Here's why New Hampshire solar still pays back in ~9.5 years — no incentives needed.
At $0.27/kWh (48% above the national average), your electric rate alone makes solar work. NEM 2.0 credits locked through 2041 seal the deal.
$0
Federal ITC in 2026
$0.27
Avg rate per kWh
9.5
Year payback (no credits)
2041
NEM 2.0 locked until
New Hampshire homeowners lost every direct solar incentive in the span of 18 months. Here is the timeline, with nothing sugar-coated.
New Hampshire permanently repealed the $0.20/W state solar rebate (capped at $1,000). There is no state solar rebate.
The One Big Beautiful Bill Act eliminated Section 25D (residential solar ITC) and Section 25C (energy efficiency credit) effective December 31, 2025.
The 30% residential solar tax credit expired. NH homeowners who buy solar with cash or a loan receive $0 in federal tax credits. No phase-down, no extension.
The energy efficiency credit (heat pumps, insulation) expired the same day. $0 for 25C claims in 2026.
Third-party system owners (PPA/lease companies) can still claim the 30% commercial ITC for projects beginning construction before July 4, 2026.
NH net energy metering credits (~85% of retail rate) are locked through January 1, 2041 under Docket DE 16-576. This is your most important remaining incentive.
Section 25D was the residential homeowner credit. Section 48/48E is the commercial/third-party credit. With a PPA or lease, a financing company (not the installer, not you) owns the system and claims the 30% ITC. The savings are passed through to you as a lower electricity rate. The installer does not claim the credit.
An honest side-by-side comparison using a typical 8 kW New Hampshire system at $3.03/W. No sugar-coating.
| Before (With 30% ITC) | After (No ITC, 2026) | |
|---|---|---|
| System Cost (8 kW at $3.03/W) | $24,240 | $24,240 |
| Federal ITC (Section 25D) | -$7,272 (30%) | $0 (EXPIRED) |
| State Solar Rebate | -$1,000 ($0.20/W capped) | $0 (REPEALED) |
| Net Cost After Incentives | $15,968 | $24,240 |
| Year 1 Savings (NEM 2.0 + self-consumption) | ~$2,538/yr | ~$2,538/yr |
| Property Tax Savings (if adopted) | ~$584/yr | ~$584/yr |
| Payback Period | ~5.1 years | ~9.5 years |
| 25-Year Net Savings | ~$100,700+ | ~$92,500+ |
Payback went from approximately 5 years to approximately 9.5 years — nearly double. But 25-year savings only dropped from ~$100,700 to ~$92,500 because the system produces the same amount of electricity regardless of incentives. You still get 15+ years of free electricity after payback, well within the 25-year panel warranty.
These numbers assume 2.5% annual rate escalation, which is conservative for NH. At $0.27/kWh today, your rate could reach $0.36/kWh in 10 years and $0.46/kWh in 20 years. Solar locks in your electricity cost at $0/kWh after payback. The longer rates climb, the more valuable your solar system becomes.
NH lost the ITC and the state rebate. But these six factors still make solar a solid investment at $0.27/kWh.
48% above the national average
NH residential electric rates average $0.27/kWh, ranging from $0.22/kWh (NHEC) to $0.26/kWh (Unitil). Every kilowatt-hour your panels produce offsets expensive grid electricity. An 8 kW system producing ~9,400 kWh/year offsets roughly $2,538 in electricity costs at average rates.
Docket DE 16-576 protection
NH NEM 2.0 credits are approximately 85% of retail rate (100% supply + 100% transmission + 25% distribution). Credits roll over indefinitely with cash-out at the $100 threshold. This rate structure is locked through January 1, 2041. NEM 2.0 is NOT 1:1 retail, but 85% of $0.27/kWh is still strong.
~66% of towns have adopted it
Approximately 200 of 300+ NH municipalities have adopted RSA 72:62, which exempts solar systems from property tax assessment. Solar adds ~$15,000 to home value but $0 to your property tax bill. At typical NH mill rates, that saves ~$584/year permanently. Check with your town if not adopted.
NH advantage on all purchases
New Hampshire has no state sales tax. Period. In Massachusetts, 6.25% sales tax on a $24,000 system would add $1,500. In Connecticut, 6.35% adds $1,543. In NH, that cost is $0. This is a structural advantage that never expires.
Third-party ITC deadline: July 4, 2026
Section 25D is dead for homeowners, but Section 48/48E is alive for third-party system owners. If you choose a PPA or lease, the financing company (not the installer) claims the 30% ITC. The savings are passed through to you as a lower per-kWh rate. This window closes July 4, 2026.
From $3.50/W to $3.03/W average since 2023
Module costs have fallen significantly due to global oversupply. An 8 kW system that cost $28,000 in 2023 now costs ~$24,240. This partially offsets the loss of the ITC. Equipment prices are expected to stabilize or rise in 2026-2027 due to tariff uncertainty.
The ITC is dead everywhere. What separates NH from states where solar no longer makes sense? Electric rates.
| State | Avg Rate | Federal ITC | State Incentive | Payback |
|---|---|---|---|---|
| New Hampshire | $0.27/kWh | $0 | None | ~9.5 years |
| Massachusetts | $0.28/kWh | $0 | SMART 3.0 ($0.03/kWh) | ~8.5 years |
| Connecticut | $0.29/kWh | $0 | RRES + Tax Exemptions | ~8-10 years |
| Ohio | $0.15/kWh | $0 | None | ~16+ years |
| Florida | $0.16/kWh | $0 | None | ~14+ years |
| Texas | $0.15/kWh | $0 | Utility-specific | ~15+ years |
Solar economics are driven primarily by what you pay for electricity, not by incentives. At $0.27/kWh, NH homeowners offset 48% more cost per kWh than the national average ($0.19/kWh). States like Ohio and Florida at $0.15-0.16/kWh face 15+ year paybacks without the ITC. NH's high rates are the reason solar works here even with zero incentives.
The residential ITC is dead, but the commercial ITC is still alive. This creates a window where third-party ownership (TPO) delivers real value to NH homeowners.
A financing company (not the installer, not you) owns the solar system on your roof. You pay for the energy it produces at a below-retail rate.
As a business entity, the system owner claims the 30% Section 48/48E ITC. On a $24,240 system, that is $7,272 in tax savings for them.
You get $0 upfront, PPA rates 10-20% below retail ($0.22-0.24/kWh vs $0.27/kWh), and immediate savings from day 1. No maintenance responsibility.
Section 48/48E requires projects to begin construction before July 4, 2026. After this date, TPO providers lose the 30% ITC and PPA/lease rates will likely increase 15-25%. If you are considering a PPA or lease, this deadline matters. The earlier you sign, the better your locked rate.
Without the residential ITC, the relative advantages of each financing option have shifted. Here is an honest comparison for NH in 2026.
Upfront Cost
$24,240 (full cost)
Federal ITC
$0 (25D expired)
System Ownership
You own the system
NEM 2.0 Credits
NEM 2.0 credits go to you
Payback
~9.5 years
25-Year Savings
Highest ($92,500+)
Best For
Maximum long-term savings, no debt
Upfront Cost
$0 down
Federal ITC
$0 (25D expired)
System Ownership
You own the system
NEM 2.0 Credits
NEM 2.0 credits go to you
Payback
Varies with rate (6-8% APR)
25-Year Savings
Strong (minus interest: $34K-42K total cost)
Best For
$0 down + ownership, build equity immediately
Upfront Cost
$0
Federal ITC
30% Section 48 (claimed by owner)
System Ownership
Third-party owns system
NEM 2.0 Credits
NEM credits may go to system owner
Payback
Immediate savings
25-Year Savings
Moderate (10-20% below retail rate)
Best For
$0 upfront + Section 48 still active until July 4, 2026
Unlike Connecticut (Smart-E via CT Green Bank) or Massachusetts (which had Mass Solar Loan, now ended), New Hampshire has no state-backed 0% or below-market solar loan program. NH solar loans are standard market rates: 6-8% APR with 15-20 year terms. This is an honest comparison, not a sales pitch.
Should you wait for incentives to come back? Here is why waiting costs you money in NH.
If you are considering cash or loan, go solar now. Every month you wait is $210 in utility bills that solar could offset, and there is no realistic scenario where the ITC returns. If you are considering TPO/PPA, go solar before July 4, 2026 — that is a hard deadline. Panel prices are at historic lows, NEM 2.0 is locked, and your $0.27/kWh rate makes the math work even without a single incentive.
Real payback estimates for NH cities using actual utility rates and local installation costs. Zero ITC, zero state rebate.
Eversource · $0.25/kWh
Eversource · $0.25/kWh
Unitil · $0.26/kWh
Eversource · $0.25/kWh
Eversource · $0.25/kWh
Liberty · $0.24/kWh
Eversource · $0.25/kWh
NHEC · $0.22/kWh
Honest answers about NH solar without the federal tax credit in 2026.
No. Section 25D (the residential solar ITC) expired December 31, 2025 under the OBBBA signed July 4, 2025. NH homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. However, if you choose a PPA or lease, the third-party system owner can claim the 30% commercial ITC under Section 48/48E for projects beginning construction before July 4, 2026.
No. SB 303, signed in 2024, permanently repealed the $0.20/W state solar rebate (which was capped at $1,000). There is no state solar rebate in New Hampshire and no pending legislation to restore it.
Yes, but it takes longer to pay back. With $0.27/kWh average rates (48% above the national average), NEM 2.0 credits locked through 2041, no state sales tax, and property tax exemptions in ~66% of towns, an 8 kW system pays back in approximately 9.5 years and generates over $92,500 in net savings over 25 years. The payback stretched from ~5 years (with ITC) to ~9.5 years, but the system still produces free electricity for 15+ years after payback.
NEM 2.0 (Net Energy Metering 2.0) is how NH credits you for excess solar energy sent to the grid. Credits equal approximately 85% of retail rate (100% supply + 100% transmission + 25% distribution). NEM 2.0 is NOT 1:1 retail rate. Credits roll over indefinitely with cash-out at the $100 threshold. The rate structure is locked through January 1, 2041 under Docket DE 16-576. This long-term guarantee is your most valuable remaining incentive.
No. The OBBBA eliminated Section 25D with no scheduled return. There is no pending legislation to restore it. Waiting means paying $0.27/kWh electric bills every month while rates continue rising at 2.5-3% annually. Additionally, the Section 48 TPO/PPA window closes July 4, 2026, and panel prices may increase due to tariff uncertainty. Every month you wait, you lose approximately $210 in electricity costs that solar could offset.
Section 25D (residential) is dead, but Section 48/48E (commercial/third-party) remains active until July 4, 2026. With a solar PPA or lease, a financing company owns the system on your roof and claims the 30% federal ITC. The savings are passed through to you as a lower per-kWh rate. The financing company (not the installer) claims the credit. After July 4, 2026, PPA/lease rates will likely increase 15-25% as this option disappears.
Yes. The RSA 72:62 solar property tax exemption must be adopted at your local town meeting. Approximately 200 of 300+ NH municipalities have adopted it (~66%). If your town has not adopted it, solar additions will increase your property tax assessment. You can check with your town clerk or assessor, or advocate for adoption at the next town meeting. Manchester, Nashua, Concord, Portsmouth, and Keene have all adopted it.
Massachusetts has the SMART 3.0 program (paying ~$0.03/kWh for 20 years), ConnectedSolutions battery payments, and slightly higher electric rates ($0.28/kWh average). MA solar payback is approximately 8.5 years. NH has no production incentive equivalent to SMART but compensates with no state sales tax (saving $1,500+ vs MA), NEM 2.0 locked through 2041, and slightly lower installation costs. NH payback is approximately 9.5 years. Both are viable without the ITC.
City-by-city pricing from Manchester to Portsmouth with installer costs.
Complete guide to going solar in New Hampshire: NEM, utilities, permitting.
All New Hampshire solar and heat pump guides in one place.
NuWatt residential solar services and process overview.
No ITC. No state rebate. We will show you the real numbers — what it costs, what it saves, and how long it takes to pay back. $0.27/kWh rates make solar work in NH even without any incentives.
Updated February 2026 — All numbers reflect post-OBBBA reality. No inflated savings promises.