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Sections 25D and 25C died on December 31, 2025. No federal tax credit for solar or heat pumps. But electrification still makes financial sense in New Hampshire because oil costs $3,056 per year and a heat pump powered by solar cuts that to near zero.
$3,056/yr
Oil Heating Cost
800 gal at $3.82
~$0/yr
Heat Pump + Solar
solar offsets HP electric
$32K-$39K
Bundle Cost
solar + heat pump
$3,056/yr
Annual Savings
oil displacement
Federal Tax Credits Are Gone
Section 25D (residential solar ITC) and Section 25C (heat pump credit) both expired December 31, 2025. The NH state solar rebate was repealed by SB 303 in 2024. This guide shows you why electrification still works without them.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, eliminated the residential clean energy tax credits that had driven solar and heat pump adoption for over a decade. Here is exactly what ended.
Was
30% of system cost
Now
$0
Expired
December 31, 2025
An 8 kW system at $24,240 would have received ~$7,272 back. That credit is gone.
Was
Up to $2,000/year
Now
$0
Expired
December 31, 2025
A $12,000 heat pump would have qualified for $2,000. That credit is gone.
Was
$0.20/W (max $1,000)
Now
$0
Expired
Repealed 2024
SB 303 permanently repealed the state solar rebate. There is no state solar rebate.
The Bottom Line
A homeowner who bought solar + heat pump in December 2025 received ~$9,272 in federal credits. A homeowner buying the same system in January 2026 receives $0. The system cost is the same. The savings from operating are the same. Only the upfront discount changed.
The federal credits are gone, but New Hampshire retains meaningful state and utility incentives. These are real programs with real money available today.
Value
$250-$1250/ton
Limit
Up to $6,250
Standard: $250/ton (max $1,250) for oil/gas/propane replacement. Enhanced: $1250/ton (max $6,250) for electric resistance replacement. Install by Dec 30, 2026.
Value
~85% of retail rate
Limit
Locked through 2041
100% supply + 100% transmission + 25% distribution. Credits roll over indefinitely. Rate lock through Jan 1, 2041 (Docket DE 16-576). System cap: 1 MW.
Value
~$584/yr saved
Limit
~66% of NH towns
RSA 72:62 exempts solar systems from property tax. Must be adopted at town meeting. About 200 of 300+ municipalities have adopted.
Value
0% on everything
Limit
All purchases
New Hampshire has no state sales tax — solar equipment, heat pumps, and installation labor are all tax-free.
Value
30% ITC for system owner
Limit
Construction by July 4, 2026
Third-party owned solar (lease/PPA) still qualifies for the 30% commercial ITC. The financing company claims the credit, not the homeowner.
New Hampshire is over 40% oil-heated — among the highest rates in the country. This is exactly why electrification works here even without tax credits. The operating cost savings are enormous.
Here is the math for a typical NH oil-heated home switching to a cold-climate heat pump powered by rooftop solar.
Step 1: Current Oil Heating Cost
Oil Price
$3.82/gal
Annual Usage
800 gal
Annual Cost
$3,056/yr
Step 2: Heat Pump Electric Cost (Without Solar)
HP Usage
~4,800 kWh/yr
Electric Rate
$0.25/kWh
Annual Cost
$1,200/yr
Even without solar, you save $1,856/yr just by switching from oil to a heat pump.
Step 3: Solar Offsets the Heat Pump Electricity
Solar Production
9,400 kWh/yr
HP Consumption
~4,800 kWh/yr
Surplus
~4,600 kWh
An 8 kW solar system produces ~9,400 kWh/yr in NH. The heat pump uses ~4,800 kWh. Solar covers the heat pump and still has ~4,600 kWh left to offset other household usage via NEM credits.
Result: Net Heating Cost with Solar + Heat Pump
Net Heating Cost
$0/yr
Solar generates more than the HP uses
Annual Savings vs. Oil
$3,056/yr
From day one. Every year. No tax credit needed.
If you heat with propane instead of oil, the numbers are similar. Propane costs approximately $3.62/gallon in NH. At ~750 gallons/year, that is ~$2,700/year. Switching to a heat pump powered by solar saves roughly $2,700/year.
Propane Cost
$2,700/yr
HP + Solar
~$0/yr
Annual Savings
~$2,700/yr
Here is the full cost picture for a whole-home electrification bundle in New Hampshire. No optimistic assumptions, no hidden credits.
Solar (8 kW system)
$24,240
$3.03/W average NH price
Heat Pump
$8,000-$15,000
Single-zone ductless to multi-zone ducted
Total Before NHSaves Rebate
$32,240-$39,240
NHSaves HP Rebate
-$1,250 to -$6,250
Standard ($250/ton) to Enhanced ($1,250/ton)
Net Cost After NHSaves
$25,990-$37,990
No 25D, no 25C, no state solar rebate. This is the real 2026 cost.
Payback Period (Cash Purchase)
~10-12 years
Based on net bundle cost of ~$31K-$38K and annual oil displacement savings of $3,056 plus ~$584 property tax savings (RSA 72:62 towns). The payback was 7-8 years with the 25D/25C credits. It is longer now, but 25-year net savings still exceed $50,000.
Ductless Mini-Split (Single Zone)
$3,500-$7,000
One indoor head, one outdoor unit. Ideal for single rooms or additions.
Ductless Mini-Split (Multi-Zone)
$8,000-$18,000
2-5 indoor heads on one outdoor unit. Good for homes without ductwork.
Ducted Central Heat Pump
$12,000-$22,000
Uses existing ductwork. Whole-home heating and cooling.
Hybrid / Dual-Fuel System
$14,000-$25,000
Heat pump paired with oil/propane backup for extreme cold. Popular in northern NH.
Without 25D/25C, the financing decision changes. Here are three realistic paths for NH homeowners in 2026, with honest pros and cons.
Net Cost
$30,990-$37,990
Monthly
$0/mo (paid upfront)
Annual Savings
$3,056/yr
Payback
10-12 years
Pros
Cons
Net Cost
HP cash + solar financed at 6-8% APR
Monthly
$190-270/mo (solar) + HP upfront
Annual Savings
$3,056/yr (minus loan payment)
Payback
12-15 years (with interest)
Pros
Cons
Net Cost
HP cash + solar $0 down lease/PPA
Monthly
$120-180/mo (PPA) + HP upfront
Annual Savings
Reduced electric bill + fuel savings
Payback
Immediate savings (no payback concept)
Pros
Cons
Split Financing Strategy
The most creative path combines a Section 48E solar lease/PPA (where the financing company captures the 30% ITC) with a cash or financed heat pump. This gets you $0-down solar with immediate savings, while the NHSaves rebate reduces your heat pump cost. The 48E construction deadline is July 4, 2026.
NHSaves is the primary remaining financial incentive for heat pumps in NH. Two tiers available:
Standard Tier
$250/ton
Max $1,250 (5 tons). Replacing oil, gas, or propane heating.
Enhanced Tier
$1250/ton
Max $6,250 (5 tons). Replacing electric resistance heating.
Deadline: Install by December 30, 2026. R-32 or R-454B refrigerant only.
Over 40% of NH electricity customers are in CPCNH-enrolled towns. Community Power aggregates purchasing for competitive supply rates, often 5-15% below utility default.
Impact on Electrification
CPCNH can lower your supply rate, reducing the cost to run your heat pump. Solar NEM credits still flow through your utility (Eversource, Liberty, Unitil). CPCNH may slightly reduce the NEM credit value (supply component is lower), but overall bill is lower.
Check if your town participates: cpcnh.org
SB 303 (signed 2024) permanently repealed the $0.20/W state solar rebate (previously capped at $1,000). There is no state solar rebate in New Hampshire. Some websites still reference it — they are wrong.
Be Wary of Outdated Info
Any solar company quoting a NH state rebate, Section 25D credit, or Section 25C credit is either outdated or dishonest. All three are gone. NHSaves HP rebate is the only active program.
NH net metering credits are ~85% of retail rate (100% supply + 100% transmission + 25% distribution). This is NOT 1:1 retail — a common misconception.
Why This Matters for Electrification
NEM 2.0 rates are locked through January 1, 2041 (Docket DE 16-576). This gives your solar investment 15+ years of predictable credit rates — critical for payback calculations. Credits roll over indefinitely, so winter overproduction offsets summer AC usage and vice versa.
System cap: 1 MW. Residential systems well under this limit.
Yes. The value case for NH electrification is driven by oil displacement, not tax credits. Oil heating costs ~$3,056/year (800 gallons at $3.82/gal). A heat pump powered by solar reduces that to near $0. Annual savings of $3,000+ create a 10-12 year payback on a $32K-$39K bundle — without any federal credit.
Section 25D (residential solar ITC) and Section 25C (energy efficiency, including heat pumps) both expired December 31, 2025 under the OBBBA legislation signed July 4, 2025. There is no federal tax credit for homeowner cash or loan purchases of solar panels or heat pumps in 2026.
NHSaves heat pump rebates are still active: $250/ton standard (max $1,250) and $1250/ton enhanced (max $6,250) for electric resistance replacement. Net metering at ~85% retail is locked through 2041. Property tax exemptions available in ~66% of towns. No state sales tax. Section 48E (30% ITC for TPO solar) is active through July 4, 2026.
An 8 kW solar system costs approximately $24,240 at $3.03/W. A cold-climate heat pump runs $8,000-$15,000 depending on type (single-zone ductless to multi-zone or ducted). Total bundle: $32,000-$39,000 before the NHSaves rebate of $1,250-$6,250.
Oil heating costs approximately $3,056/year in NH (800 gallons at $3.82/gallon). A heat pump uses approximately 4,800 kWh/year for heating at a cost of ~$1,200 without solar. With an 8 kW solar system producing ~9,400 kWh/year, the solar fully offsets the heat pump electricity plus most household usage. Net annual savings: approximately $3,056 from day one if solar covers all HP electricity.
Yes. Section 48E allows third-party system owners (leasing/PPA companies) to claim the 30% commercial ITC on your system. The financing company owns the panels, claims the credit, and you pay a reduced monthly rate for the electricity. This must begin construction before July 4, 2026.
No. SB 303 (signed 2024) permanently repealed the $0.20/W state solar rebate. There is no state solar rebate in New Hampshire. The NHSaves heat pump rebate is the primary remaining state-level incentive.
For a cash purchase of solar ($24,240) plus heat pump ($8,000-$15,000), minus NHSaves rebate ($1,250-$6,250), the payback is approximately 10-12 years based on ~$3,056/year oil displacement savings plus ~$584/year property tax savings (in towns with RSA 72:62). This is longer than the pre-2026 payback of 7-8 years when 25D/25C were available, but the 25-year net savings still exceed $50,000.
Install the heat pump first (or both together). The heat pump determines your electricity consumption, which you need to know to size the solar array correctly. If your oil boiler or furnace is failing, the heat pump is urgent. The NHSaves rebate has a December 30, 2026 installation deadline. Solar sizing is most accurate after one heating season with the heat pump.
NEM 2.0 credits are approximately 85% of retail rate (100% supply + 100% transmission + 25% distribution). Credits roll over indefinitely. An 8 kW solar system produces ~9,400 kWh/year. A heat pump uses ~4,800 kWh/year. The surplus (~4,600 kWh) offsets other household usage or generates NEM credits. Rate lock through January 1, 2041.
Full cost breakdown and payback analysis for rooftop solar in NH.
Read guideComplete guide to NHSaves tiers, requirements, and application process.
Read guideThe electrification stack: how solar offsets heat pump electricity.
Read guideDoes solar still make sense without the 25D ITC? NH-specific analysis.
Read guideOil-to-heat-pump economics for New Hampshire homeowners.
Read guideCompare all financing options for NH solar in 2026.
Read guideThe tax credits are gone, but the savings are real. Oil costs $3,056/year. Solar + heat pump costs near $0/year to operate. NuWatt designs, installs, and maintains both systems. NHSaves deadline: December 30, 2026.