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The federal tax credit is dead. The state rebate was repealed. But New Hampshire still has two legitimate tax benefits for solar owners: the RSA 72:62 property tax exemption and zero sales tax. Here is the complete picture.
Important: The 30% federal solar tax credit (Section 25D) expired December 31, 2025.
Many websites still advertise this credit. Homeowners who buy solar with cash or a loan in 2026 receive $0 in federal tax credits. This page reflects accurate 2026 tax benefits only. Learn what happened
Three major solar incentives that once benefited New Hampshire homeowners are no longer available. Any website that still advertises these is out of date.
Was 30% — Now $0
Expired December 31, 2025. $0 for homeowner cash/loan solar purchases. Under the OBBBA (signed July 4, 2025), homeowners who purchase solar with cash or a loan in 2026 receive zero federal tax credit. On a $24,000 system, that is $7,200 lost.
Was $0.20/W — Now $0
SB 303 (signed 2024) permanently repealed the $0.20/W state solar rebate. There is no state solar rebate in New Hampshire. The previous cap was $1,000. There are no current legislative proposals to reinstate it.
Was $2,000/yr — Now $0
Expired December 31, 2025. $0 for heat pumps, insulation, etc. This covered heat pumps, insulation, windows, and other efficiency upgrades. It is no longer available for any homeowner.
Total lost for a typical NH homeowner
On a typical 8 kW system costing $24,000: the federal ITC would have saved $7,200 and the state rebate would have saved $1,000. That is $8,200 in incentives that no longer exist. This is the reality of going solar in NH in 2026 — but there are still benefits worth understanding.
With the federal ITC and state rebate gone, RSA 72:62 is the single most valuable remaining tax benefit for NH solar owners. It prevents your property taxes from increasing when you install solar panels.
Adoption Rate
~66% of towns (approximately 200 of 300+ municipalities)
of NH municipalities
Avg. Annual Savings
$584
property tax savings
Statute
RSA 72:62
Town vote required
Over 25 Years
$14,600
cumulative savings
Solar value excluded from assessment
When your town assessor evaluates your property, the value added by solar panels is excluded from the taxable assessment. Your home value goes up, but your tax bill does not.
Town must vote to adopt
RSA 72:62 is not automatic statewide. Each town must vote to adopt the exemption at town meeting. Approximately 200 of 300+ municipalities have done so.
Applies to entire solar system
The exemption covers panels, inverters, racking, wiring, and battery storage. Some towns may require a separate application after installation.
Based on typical 8 kW system adding ~$15,000 in value at NH average mill rate
Plus approximately 185 other NH municipalities. This list is not exhaustive.
Towns can adopt the exemption at any future town meeting. Always verify with your local assessor.
Your town hasn't adopted RSA 72:62? Here's how to change that.
New Hampshire has zero state sales tax on any purchase. For solar buyers, this means you pay nothing extra on equipment, labor, or installation — automatically, with no forms or applications required.
NH Sales Tax Rate
0%
On everything, including solar
On a typical $24,000 solar installation:
Most New England states exempt solar from sales tax, so the practical advantage is neutral for solar specifically. However, NH's zero sales tax applies to all related purchases (battery storage, panel cleaning, monitoring equipment) that may not qualify for exemptions in other states.
The real advantage: no paperwork
In states with sales tax exemptions for solar, homeowners often need to file forms, provide documentation, or work with the installer to ensure the exemption is applied correctly. In NH, you never deal with sales tax at all — on solar or anything else. The savings are automatic and guaranteed.
While homeowners can no longer claim the ITC, the commercial tax credit (Section 48/48E) is still available for third-party system owners. This matters because lease and PPA companies pass those savings to you through lower rates.
A solar financing company (SunRun, Tesla, Sunnova, etc.) installs panels on your roof and retains ownership.
The third-party owner claims the 30% base ITC under Section 48/48E, plus potential adders for domestic content (+10%), energy communities (+10%), and low-income areas (+10-20%).
The ITC reduces the company's cost, which they pass to you through lower PPA rates or lease payments. You benefit from the credit indirectly.
Based on $24,000 system. Not all adders apply to every project.
You do NOT claim the credit yourself. Only the third-party system owner claims it.
Projects must begin construction before July 4, 2026. This deadline is firm.
You do not own the system. The financing company does. This complicates home sales.
Total savings over 25 years are less than cash purchase, but you get $0 down and immediate savings.
Bottom line for NH homeowners: If you cannot afford $24,000+ upfront and want solar savings starting immediately, a TPO arrangement is the only way to benefit from any federal tax credit in 2026. The financing company gets the credit; you get lower electricity bills. This is especially relevant in NH where there is no state rebate to offset cash purchase costs. See full analysis: Solar without the tax credit in NH
NH businesses installing solar in 2026 can still capture significant tax benefits through the commercial ITC and accelerated depreciation. These are not available to residential homeowners.
20% Bonus in 2026
Commercial solar systems qualify for Modified Accelerated Cost Recovery System (MACRS) depreciation over 5 years. In 2026, there is a 20% bonus depreciation that allows businesses to deduct 20% of the system cost in year one, with the remainder spread over the 5-year schedule.
Example: $100,000 commercial system
48/48E deadline: July 4, 2026
Projects must begin construction before this date to qualify for the commercial ITC.
Bonus depreciation drops to 0% in 2027
The 20% bonus depreciation in 2026 is the last year. In 2027, only the standard 5-year MACRS schedule applies.
NH has no state corporate income tax
NH imposes a Business Profits Tax (7.5%) and Business Enterprise Tax (0.55%). MACRS deductions offset federal taxes. Consult a tax professional for state-level treatment.
C-PACE financing available
NH municipalities that have opted in offer Commercial Property Assessed Clean Energy (C-PACE) financing with 100% coverage, 20-25 year terms.
How does New Hampshire stack up against its neighbors? Every New England state lost the federal 25D ITC. The difference is in state-level programs.
| State | Sales Tax | Property Tax Exempt | State Rebate / Program | Federal 25D ITC |
|---|---|---|---|---|
| New HampshireYou are here | 0% | RSA 72:62 (~66% of towns) | None (SB 303 repealed) | $0 (25D expired) |
| Massachusetts | 6.25% (solar exempt) | Statewide (Ch. 59 S5) | SMART $0.03/kWh + $1,000 credit | $0 (25D expired) |
| Connecticut | 6.35% (solar exempt) | Statewide (CGS 12-81(57)) | Energize CT rebate | $0 (25D expired) |
| Rhode Island | 7% (solar exempt) | Statewide | REG tariff program | $0 (25D expired) |
| Vermont | 6% (solar exempt) | Statewide | None | $0 (25D expired) |
| Maine | 5.5% (solar exempt) | Statewide | None (but strong NEM) | $0 (25D expired) |
Data as of February 2026. All states lost the 25D ITC. State programs vary and are subject to change. Solar sales tax exemptions exist in most NE states.
Zero sales tax on everything (no forms, no exemptions to apply for)
No state income tax — solar does not affect your state tax return
Highest net metering cap in New England (100 kW vs 25 kW)
Property tax exemption available in ~66% of towns
No state solar rebate (MA has SMART, CT has Energize CT, RI has REG)
Property tax exemption is not statewide — depends on your town
Lower electricity rates mean less savings per kWh of solar
Longest payback period in New England (~9.5 years)
Common questions about solar tax benefits, exemptions, and credits in New Hampshire in 2026.
No. The residential solar tax credit (Section 25D) expired on December 31, 2025, under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. Homeowners who purchase solar with cash or a loan in 2026 receive $0 in federal tax credits. However, if you go with a lease or PPA (third-party ownership), the financing company can still claim the 30% commercial ITC under Section 48/48E for projects beginning construction before July 4, 2026.
RSA 72:62 allows New Hampshire towns to vote at town meeting to exempt solar energy systems from property tax assessment. If your town has adopted it, the value your solar panels add to your home is excluded from your property tax calculation. For a typical 8 kW system adding roughly $15,000 in home value, this saves approximately $584 per year in property taxes. However, this exemption is not automatic statewide - your town must have voted to adopt it. About 66% of NH towns (roughly 200 of 300+ municipalities) have adopted it.
No. New Hampshire has zero state sales tax on any purchases, including solar equipment and installation. This is an automatic advantage - you do not need to apply for an exemption. On a typical $24,000 system, this saves approximately $1,450 compared to buying solar in Massachusetts (6.25% sales tax, though MA does have a solar exemption) and approximately $1,524 compared to Connecticut (6.35% sales tax, though CT also exempts solar).
The New Hampshire state solar rebate was permanently repealed by SB 303 in 2024. The previous program offered $0.20 per watt with a $1,000 cap for residential installations. There is no active state solar rebate program in New Hampshire in 2026, and there are no current legislative proposals to reinstate one.
Yes. Commercial solar installations can benefit from the Section 48/48E Investment Tax Credit (30% base rate plus potential adders for domestic content, energy communities, and low-income areas) for projects beginning construction before July 4, 2026. Businesses can also claim MACRS accelerated depreciation (5-year schedule with 20% bonus depreciation in 2026). These two incentives combined can offset 50-60% of the system cost for qualifying businesses.
Contact your town tax assessor office or check your town meeting minutes for a vote on RSA 72:62. You can also search the DSIRE database (dsireusa.org) for your specific municipality. Major cities like Manchester, Nashua, Concord, Portsmouth, and Keene have adopted it. If your town has not adopted the exemption, you can petition your selectboard to place an RSA 72:62 warrant article on the next town meeting ballot.
Get a personalized estimate that accounts for your town's property tax exemption, your utility rate, and your roof. No hidden fees, no outdated tax credit assumptions.
Or call us: 781-235-8180
Complete cost breakdown by city, system size, and financing type.
Read moreDetailed analysis of solar economics now that 25D is gone.
Read moreThe definitive guide to solar in New Hampshire: costs, net metering, payback.
Read more48/48E ITC, MACRS, C-PACE, and commercial financing options.
Read moreHow net metering works for all four NH utilities.
Read moreFull explanation of the federal ITC expiration and what replaced it.
Read moreProperty tax data: NH Department of Revenue Administration, RSA 72:62 adoption records, municipal tax assessor offices.
Federal tax credit status: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. Section 25D expired December 31, 2025. Section 48/48E active through July 4, 2026.
State rebate: SB 303 (2024) permanently repealed the NH state solar rebate. DSIRE database (dsireusa.org) confirms no active state solar incentive.
Sales tax: NH RSA 78:1 — New Hampshire imposes no general sales or use tax.
Neighboring state data: MA DPU, CT PURA, RI PUC, VT PSB, Maine PUC, DSIRE database.
Last updated: February 2026.