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New Hampshire's NEM 2.0 credits solar exports at approximately 85% of retail rate — not 100%. The credit formula is 100% supply + 100% transmission + 25% distribution. The key advantage? This formula is locked through January 1, 2041. Here is what that actually means for your wallet.
Many solar websites and even some installers incorrectly state that New Hampshire has 1:1 retail net metering. It does not. NH's NEM 2.0 program credits exported solar at approximately 75-95% of your retail rate, depending on your utility. The credit formula is: 100% of the supply charge + 100% of the transmission charge + only 25% of the distribution charge. What you lose on the credit rate, you gain in certainty — this formula is guaranteed through January 1, 2041 under Docket DE 16-576.
Your electric bill has three main components. NEM 2.0 credits each one differently. Understanding this formula is the key to accurate solar savings projections in NH.
The cost of generating the electricity itself. Fully credited because your solar directly offsets generation.
The cost of moving electricity on high-voltage lines. Fully credited because your solar reduces grid transmission load.
The cost of local wires, poles, and substations. Only 25% credited because the grid infrastructure exists whether you use it or not.
Result: ~85% of Retail Rate (Not 100%)
Because distribution is typically 30-40% of your bill and only 25% of it is credited, the net effect is that NEM 2.0 credits are worth approximately 75-95% of your full retail rate. The exact percentage depends on your utility's rate structure — utilities with higher distribution charges see a bigger gap.
Each NH utility has a different rate structure, which means the effective NEM credit differs. Here is a breakdown of all four utilities using current 2026 rate data.
| Utility | Service Area | Retail Rate | NEM Credit | % of Retail | Market Share | CPCNH |
|---|---|---|---|---|---|---|
Eversource Eversource New Hampshire | Southern and central NH (largest territory) | $0.25/kWh | ~$0.21/kWh | ~84% | ~71% | |
Liberty Liberty Utilities | Central and western NH (Salem, Keene, Littleton) | $0.24/kWh | ~$0.20/kWh | ~83% | ~6% | |
Unitil Unitil | Capital region (Concord, Hampton, Exeter) | $0.26/kWh | ~$0.22/kWh | ~85% | ~11% | |
NHEC NH Electric Cooperative | Northern NH and rural areas (118 towns) | $0.22/kWh | ~$0.19/kWh | ~86% | ~12% |
Eversource New Hampshire · ~71% of NH customers
$0.25/kWh
~$0.21/kWh
Southern and central NH (largest territory)
Yes
Liberty Utilities · ~6% of NH customers
$0.24/kWh
~$0.20/kWh
Central and western NH (Salem, Keene, Littleton)
Yes
Unitil · ~11% of NH customers
$0.26/kWh
~$0.22/kWh
Capital region (Concord, Hampton, Exeter)
Yes
NH Electric Cooperative · ~12% of NH customers
$0.22/kWh
~$0.19/kWh
Northern NH and rural areas (118 towns)
No
Why Do Credit Percentages Vary?
Each utility has a different distribution charge structure. NHEC (a cooperative) has a simpler rate structure with a smaller distribution component, so the 25% distribution penalty has less impact — resulting in a higher percentage of retail (~86%). Eversource, with higher distribution charges, sees a bigger gap (~84%).
Under NH PUC Docket DE 16-576, the NEM 2.0 credit formula is locked in place through January 1, 2041. This is not just grandfathering — the entire program framework is guaranteed for 15+ more years.
While states like California (NEM 3.0 slashed credits by 75%), Nevada, and Hawaii have dramatically reduced net metering value, NH solar owners know exactly what their credits will be calculated as through 2041. The rates themselves will change (supply costs fluctuate), but the formula — 100% supply + 100% transmission + 25% distribution — remains fixed.
40%+ of NH electricity customers are in a Community Power town. If you're one of them, here is how it affects your solar credits.
Bottom line: If your town is in CPCNH, going solar still makes strong financial sense. The slight reduction in NEM credit value (1-3%) is more than offset by the lower supply rate CPCNH provides on the electricity you still buy from the grid. Your installer should account for CPCNH rates when projecting your savings.
NH has generous size limits and favorable excess credit policies compared to many states.
Important: Size Your System to Match Usage
Because NEM 2.0 credits are ~85% of retail (not 100%), oversizing your system creates a larger gap. Every kWh you self-consume saves you the full retail rate. Every kWh you export earns only ~85%. The ideal system matches your annual production to approximately 90-100% of your annual consumption.
Here is how NEM 2.0 plays out over a typical year for an 8 kW system on an Eversource account in NH. Notice the seasonal overproduction banking that offsets winter bills.
| Month | Production (kWh) | Usage (kWh) | NEM Credit (kWh) | Est. Bill |
|---|---|---|---|---|
| January | 380 | 1,100 | — | ~$189 |
| February | 460 | 1,000 | — | ~$142 |
| March | 680 | 900 | — | ~$58 |
| April | 840 | 750 | +90 | $0 +credit |
| May | 980 | 700 | +280 | $0 +credit |
| June | 1,050 | 800 | +250 | $0 +credit |
| July | 1,020 | 950 | +70 | $0 +credit |
| August | 940 | 900 | +40 | $0 +credit |
| September | 780 | 800 | — | ~$4 |
| October | 580 | 850 | — | ~$57 |
| November | 380 | 950 | — | ~$150 |
| December | 310 | 1,050 | — | ~$194 |
| Annual Total | 8,400 kWh | 10,750 kWh | Est. savings: ~$1,999/yr | |
Key Insight: Self-Consumption Matters More in NH
Because NEM credits are ~85% of retail (not 100%), every kWh you self-consume is worth more than every kWh you export. A battery, heat pump water heater, or EV charging during solar hours increases self-consumption and maximizes your return.
NH is mid-tier on credit rate but has the strongest rate lock guarantee in the region. Here is how all six NE states compare.
| State | Credit Type | % of Retail | Lock / Guarantee | Notes |
|---|---|---|---|---|
Massachusetts Best credit rate | 1:1 retail rate | ~100% | No guaranteed lock | Full retail credit but subject to SMART program changes |
Vermont Best total value | Retail + adder | ~105-110% | 10-year rate guarantee | Retail rate plus small solar adder for qualifying systems |
New Hampshire Best lock duration | NEM 2.0 (~85% retail) | ~75-95% | Through 2041 (15+ years) | 100% supply + 100% transmission + 25% distribution |
Connecticut In transition | Transitioning | ~85-95% | 20-year tariff (new installs) | Moving to value-of-distributed-energy-resources (VDER) |
Rhode Island Longest term | ~80% retail (post-2023) | ~80% | 25-year term (RE Growth) | RE Growth program replaced prior net metering |
Maine Recently changed | Net billing (~90%) | ~90% | 20-year tariff | Transitioned from 1:1 retail to net billing in 2024 |
Credit: 1:1 retail rate
Lock: No guaranteed lock
Full retail credit but subject to SMART program changes
Credit: Retail + adder
Lock: 10-year rate guarantee
Retail rate plus small solar adder for qualifying systems
Credit: NEM 2.0 (~85% retail)
Lock: Through 2041 (15+ years)
100% supply + 100% transmission + 25% distribution
Credit: Transitioning
Lock: 20-year tariff (new installs)
Moving to value-of-distributed-energy-resources (VDER)
Credit: ~80% retail (post-2023)
Lock: 25-year term (RE Growth)
RE Growth program replaced prior net metering
Credit: Net billing (~90%)
Lock: 20-year tariff
Transitioned from 1:1 retail to net billing in 2024
NH's Position: Mid-Tier Credit, Best Lock
NH does not match MA's 1:1 retail or VT's retail-plus-adder on credit value. But NH's 2041 rate lock is unmatched in New England. For homeowners planning to stay in their home long-term, the predictability of NH's NEM 2.0 can be more valuable than a higher but uncertain credit rate elsewhere.
Answers to the most common questions about net metering and NEM 2.0 in New Hampshire.
No. This is a common misconception. NH uses NEM 2.0, which credits solar exports at approximately 85% of the retail rate — not 100%. The formula is: 100% of the supply component + 100% of the transmission component + 25% of the distribution component. The exact percentage varies by utility (75-95% range) because each utility has a different distribution charge structure.
Under Docket DE 16-576, the NEM 2.0 credit formula (100% supply + 100% transmission + 25% distribution) is locked in place through January 1, 2041. This means even if NH changes its net metering policy for new installations, existing systems installed under NEM 2.0 retain the current credit structure for 15+ years. This is the longest guaranteed rate lock in New England.
It depends on your utility. Eversource customers receive approximately $0.21/kWh (~84% of the $0.25 retail rate). Liberty customers receive ~$0.20/kWh (~83% of $0.24). Unitil customers receive ~$0.22/kWh (~85% of $0.26). NHEC customers receive ~$0.19/kWh (~86% of $0.22). These are averages — exact values fluctuate with rate changes.
New Hampshire allows net metering for systems up to 1 MW (1,000 kW). This is not the 100 kW limit cited by some outdated sources — the cap was increased to 1 MW. Most residential systems are 6-10 kW, well within this limit. Excess credits roll over month to month indefinitely, with cash-out available when credits reach the $100 threshold.
If your town participates in the Community Power Coalition of NH (CPCNH), it affects the supply portion of your electric bill but NOT your NEM credit calculation. CPCNH may lower your supply rate (saving you 5-15% on that component), which slightly reduces your NEM credit value since the supply component is part of the credit formula. However, your delivery charges and NEM structure remain with your utility (Eversource, Liberty, Unitil).
No. The federal residential solar tax credit (Section 25D) expired on December 31, 2025. There is $0 in federal tax credits for homeowner cash or loan solar purchases. However, systems installed through third-party ownership (PPA/lease) may still benefit from the commercial ITC (Section 48/48E, 30%) claimed by the financing company — but only for projects beginning construction before July 4, 2026.
The NH state solar rebate ($0.20/W, max $1,000) was permanently repealed by SB 303, signed into law in 2024. There is no state solar rebate in New Hampshire. The only state-level solar benefit is the property tax exemption under RSA 72:62 (adopted by approximately 66% of NH towns) and the lack of state sales tax on solar equipment.
With NEM 2.0 credits (~85% of retail) and no federal or state rebates, the typical payback for an 8 kW cash-purchased system in NH is approximately 9-10 years. This assumes average NH electric rates of $0.27/kWh with 2.5% annual rate escalation. Over 25 years, a well-sized system generates approximately $68,000-93,000 in total savings, depending on your utility and rate trajectory.
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NEM 2.0 is not 1:1 retail — but with credits locked through 2041, no state rebate, and no federal ITC, the best time to install is while the rate lock guarantee still applies. Get a real estimate based on your utility and usage.
No cost. No obligation. Real NEM 2.0 credit projections based on your utility and usage.