Renewable Portfolio Standards
Just one reason New Hampshire is a leader in renewable energy is the state’s strong Renewable Portfolio Standards (RPS). The standards mandate that New Hampshire generates 24.8% of all its energy from renewable sources by 2025. Utilities will have to pay high fees if the standards are not met, so there is strong incentive in New Hampshire for utilities to offer solar incentives.
Solar carve-outs require a certain percentage of a state’s renewable energy to come from solar by a certain deadline. The solar carve-out in New Hampshire is a modest 0.3%.
Electric rates in New Hampshire put the state at fourth highest in the country. No wonder so many people there adopt renewable energy. High electric rates make an investment in solar energy more financially rewarding.
Strong net metering laws are a bonus in New Hampshire. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility, allowing customers to offset the cost of the power they draw from the utility with credits they earn on their own production. If your system produces more energy than you need, the excess power is sold to the grid, which you see as a credit on your power bill.
Interconnection standards are requirements for connecting solar and other electrical generation systems to the grid. They make installation easier and usually less expensive, and net metering is more reliable too. The standards in New Hampshire are decent and statewide.
Solar Power Rebates
The state has generous rebate programs for solar power. Systems up to 10 kW in size are eligible.
Federal Tax Credit
On top of these great New Hampshire rebates and exemptions, you also qualify for the hefty tax credit from the Federal government. The Investment Tax Credit (ITC) is worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes to those who buy their system (cash or loan), not to those who lease. If you lease a system, incentives go to the third-party owner. That’s a great reason to buy, not lease!