New Hampshire State Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

Not bad, but there has been little legislative effort promoting residential solar power.

The State of New Hampshire appears to have a fairly aggressive program aimed at promoting energy efficiency, in both residential and business applications. However, the only recent solar initiative has been to mandate higher use of renewable energy sources by the state’s electric utility providers. Incentives for residential users have been very limited.

State Legislation

The most significant solar power legislation, House Bill 0873, was signed into law on May 11th, 2007 by New Hampshire Governor John Lynch. The “Electric Renewable Portfolio Standard” will require electric utilities to utilize solar power for 0.3% of their electrical power generation by the year 2014. The law also requires that by 2025, 16% of the state’s electricity needs must be supplied by other renewable energy sources. The full text of the bill can be found at:
HB0873.

Another state initiative, the “New Hampshire Solar on Schools Program” deserves honorable mention. Under grants administered by a joint partnership of the Governor’s Office of Energy and Community Service (ECS), Public Service of New Hampshire (PSNH), and Solar Works, Inc., of Wilton, NH, selected high schools are being equipped with a roof-mounted 1-kilowatt photovoltaic cell solar system. The program was started in 1998.

Utility Rebates, Utility Loans and Utility Programs

New Hampshire has a population of about 1.3 million people and an area of roughly 9,000 square miles that ranks it 40-something in size in the nation. In 2006, it was among the top 15 states participating in the EPA/DOE joint “Energy Star” program, in which 17% of the new homes being built in New Hampshire are typically 20% – 30% more energy efficient than conventional housing.

Although the state offers a number of incentive programs to businesses and homeowners for energy efficiency, few incentives are provided to promote alternative energy sources. “The State of New Hampshire does not offer grants, loans or rebates for the purchase or installation of renewable energy systems”, reports the state’s Office of Energy and Planning.

State law allows municipalities to offer renewable incentives in the form of property tax exemptions; 62 cities and towns (a little more than one-third of New Hampshire’s municipalities) offer these incentives. Solar technologies included under NH RSAs 72:61-72 are photovoltaics, solar space heating, solar water heating, and passive solar. Further information is available at: nh.gov

Example: 645 kWh/Month System – Home Installation Cost

Manchester, in the county of Hillsboro, is New Hampshire’s largest city with over 125,000 business establishments, approximately 110,000 people, and more than 583,000 housing units. The average residential electric utility bill in Hillsboro County is $87/month, just slightly under the national average. The area is rated “Good” for relative suitability of solar power.

Alas, only about one-third of New Hampshire’s municipalities offer property tax incentives for home-owners who install solar power or other renewable energy sources, and the city of Manchester is not one of them. Other state or municipal solar power incentives are equally lacking, leaving only federal tax credits as incentives to home-owners. Installation costs vary, but a mid-range system cost of $31,500 (net $29,500 after applying a $2,000 federal tax credit) was assumed in this example to achieve a 50% reliance on solar power. It should be noted that a roof area of 300 square feet is required.

• Estimated monthly system cost of $29,500 amortized at 6.5% over 30 years: $186/month
• Average utility savings: $61/month*
• 25-year utility savings: $18,169*
• Increase in property value: $8,660

*Utility savings assume a 3.78% annual utility inflation rate.

Consensus

To an observer, New Hampshire appears to be fairly progressive in its approach to reducing energy consumption, but is doing little to encourage the residential use of renewable energy sources. Is the state missing an important opportunity here?

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