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NH Solar: Cash vs Loan vs Lease in 2026. The ITC death changed the financing calculus. Before, cash was king because you kept the 30% credit. Now, TPO is surprisingly competitive because the financing company gets the ITC that you can't.
8 kW system | $24,200 average cost | $0.27/kWh avg rate | 85% NEM credit | No state rebate (SB 303 repealed)
The 30% federal solar tax credit (Section 25D) expired December 31, 2025.
Cash and loan buyers receive $0 in federal credits. TPO/PPA/lease companies still access 30% via Section 48/48E because the system owner (not the homeowner) claims the credit. Deadline: July 4, 2026.
The expiration of the residential ITC (Section 25D) on December 31, 2025 fundamentally changed the solar financing equation. Before 2026, cash was the clear winner: you paid upfront, claimed the 30% credit ($7,200+ on an 8 kW system), and kept all NEM credits. That math no longer works.
Now, third-party ownership (TPO) companies are the only entities that can claim a federal tax credit on residential solar, via Section 48/48E. They pass that savings to you through lower PPA rates or lease payments. The playing field has shifted.
$24,240
Avg 8 kW System Cost
$3.03/W
$0
Federal ITC for Homeowners
25D expired Dec 2025
~85%
NEM Credit Rate
Of retail rate
9.5 yrs
Cash Payback
$92,510 over 25 yrs
Highest long-term return, highest upfront cost
Paying cash for an 8 kW system in NH costs approximately $24,240 upfront. With no ITC to reduce that figure, you are paying full price. But you also keep 100% of the savings: all NEM credits, all electricity offset, and all home equity gain.
At NH's average electric rate of $0.27/kWh with NEM 2.0 credits at ~85% of retail, a cash purchase pays for itself in about 9.5 years. Over 25 years, total savings reach approximately $92,510 with 2.5% annual rate escalation factored in.
Cash purchase remains the best option for long-term ROI, but the gap between cash and TPO has narrowed significantly now that cash buyers no longer get the 30% credit.
Ownership without the upfront cost, but no 0% option in NH
A solar loan lets you finance the full $24,200 with $0 down. Monthly payments run $190-270/month depending on the term (15-20 years) and interest rate (6-8% APR typical in 2026).
Unlike Massachusetts (which had the HEAT Loan at 0% APR), New Hampshire has no subsidized solar loan program. At 6-8% APR, interest adds $10,000-18,000 over the loan term. This significantly extends the effective payback period to 11-14 years.
The key advantage: you still own the system. That means you keep all NEM credits (~85% of retail rate), build home equity, and benefit from the property tax exemption under RSA 72:62 if your town has adopted it.
Avg Monthly Loan Payment
$190-270
Avg Monthly Electric Bill
~$215
(800 kWh/mo at $0.27/kWh)
In early years, your loan payment may exceed your utility savings. After the loan is paid off, all savings are yours.
$0 down, day-1 savings, and the only path to the ITC in 2026
Third-party ownership (TPO) is the breakout financing option of 2026. A solar company installs, owns, and maintains panels on your roof. You pay them for the electricity at a PPA rate of $0.14-0.18/kWh versus NH's average retail rate of $0.27/kWh. That's 33-48% savings from day one.
The reason TPO rates are so competitive: the financing company claims the 30% ITC under Section 48/48E ($7,200 on an 8 kW system). Since homeowners can no longer claim 25D, TPO is the only residential solar financing path that captures a federal tax credit. That savings gets passed to you through lower rates.
The trade-offs: you do not own the system. NEM credits may go to the system owner. A 20-25 year contract complicates home sales. And there's a hard deadline: Section 48/48E expires for new construction after July 4, 2026. After that, even TPO companies lose the ITC advantage.
Typical PPA Rate
$0.14-0.18
/kWh
NH Retail Rate
$0.27
/kWh average
Savings: $0.09-0.13/kWh from day one
~$850-1,200/year on typical 9,400 kWh production
Deadline: July 4, 2026
48/48E expires for new construction
Cash | Loan | TPO/PPA | |
|---|---|---|---|
| Upfront Cost | $24,200 | $0 | $0 |
| Monthly Payment | $0 | $190-270 | $120-180 |
| Federal ITC | $0 (25D dead) | $0 (25D dead) | 30% (Sec 48/48E) |
| You Own System | Yes | Yes | No |
| NEM Credits | You keep all | You keep all | May go to owner |
| Property Tax Exempt | Yes (RSA 72:62) | Yes (RSA 72:62) | Owner claims |
| Maintenance | You handle | You handle | Owner handles |
| 25-Year Savings | ~$92K | ~$55-68K | ~$36-54K |
| Payback Period | 9.5 years | 11-14 years | Immediate |
| Home Sale Impact | Adds value | Adds value | Contract transfer |
| Best For | Long-term investors | Ownership seekers | Risk-averse / no upfront $ |
Based on 8 kW system at $3.03/W in NH. NEM 2.0 at ~85% of retail. Loan at 6-8% APR over 15-20 years. PPA rate $0.14-0.18/kWh. 2.5% annual rate escalation assumed. No state rebate (SB 303 repealed).
Section 48/48E expires for new construction after July 4, 2026.
After this date, TPO/PPA/lease companies will no longer be able to claim the 30% ITC on new residential solar installations. This eliminates the core cost advantage that makes TPO competitive in 2026.
This creates a clear timeline for NH homeowners:
Q1-Q2 2026 (Now through July 4)
Current WindowTPO has its strongest advantage. The financing company claims 30% ITC and passes savings to you. PPA rates are at their lowest. This is the window to lock in a TPO deal.
After July 4, 2026
TPO loses the ITC advantage. PPA rates will likely increase since the financing company can no longer offset costs with the 30% credit. Cash and loan become relatively more competitive again, though still without any federal credit.
2027 and Beyond
All three options are on equal footing: no federal credits for anyone. Choice comes down to upfront capital, risk tolerance, and NH-specific factors like NEM 2.0 credits (locked through 2041) and property tax exemptions.
The right financing choice depends on your budget, timeline, risk tolerance, and whether you plan to sell your home. Use this decision tree to narrow it down.
Cash Purchase gives you the best 25-year return (~$92K savings). All NEM credits and equity are yours. 9.5-year payback.
Solar Loan lets you own the system with $0 down. Monthly payments $190-270 but you keep all NEM credits and build home equity.
TPO/PPA gives you $0 down, day-1 savings, and zero maintenance. The financing company gets the 30% ITC (Section 48/48E) and passes savings to you through lower rates.
Consider waiting until NH HEAR rebates launch (spring 2026 anticipated). Up to $8,000 for income-qualified households could change the math for a cash or loan purchase.
Best for: Homeowners with capital who plan to stay 10+ years
Best for: Homeowners who want ownership without upfront capital
Best for: Risk-averse homeowners wanting day-1 savings with no upfront cost
No. The residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners who buy solar with cash or a loan receive $0 in federal tax credits. However, if you go with a TPO/PPA/lease, the third-party system owner claims the 30% commercial ITC (Section 48/48E) through July 4, 2026, which lowers your rate.
Before 2026, cash buyers kept the 30% ITC ($7,200+ on an 8 kW system), making ownership the clear winner. Now that 25D is dead, cash and loan buyers get $0. But TPO companies still claim 30% under Section 48/48E because they own the system. That $7,200 advantage gets passed to you as lower PPA rates, making TPO far more competitive than it used to be.
Section 48/48E requires projects to begin construction before July 4, 2026. After that date, even TPO companies lose the 30% ITC. This makes Q1-Q2 2026 the last window where TPO has a built-in cost advantage over cash or loan purchases.
No. Unlike Massachusetts (which had the HEAT Loan program), New Hampshire has no subsidized 0% APR solar loan. Typical solar loan rates in NH are 6-8% APR, which adds $10,000-18,000 in interest over the life of the loan. This makes the loan option less attractive than it would be in neighboring states.
Under NH NEM 2.0, excess solar is credited at approximately 85% of the retail rate (100% supply + 100% transmission + 25% distribution). With a TPO/PPA, the system owner may receive those NEM credits and factor them into the rate they charge you. You benefit indirectly through a lower PPA rate, but you do not see NEM credits on your bill directly.
You typically have three options: transfer the contract to the buyer (most common), buy out the remaining contract, or have the system removed at your expense. Most buyers are willing to assume the contract since it provides immediate electricity savings. However, some buyers may see the contract as a complication, so factor this into your decision if you plan to move within 10 years.
Every home is different. Your roof, utility, and financial situation determine which option saves you the most. Get a custom quote comparing cash, loan, and TPO options for your specific address.
TPO/PPA deadline: July 4, 2026. Lock in 30% ITC savings before Section 48/48E expires.