Hey there! I‘m so glad you reached out with questions about solar energy. As a New Hampshire resident myself, I‘ve spent years analyzing our state policies and financial incentive programs to maximize savings for homeowners like you. This guide will break down everything you need to know to slash your electric bills while supporting clean energy.
New Hampshire is Booming with Solar Energy Potential
First, let‘s talk about why New Hampshire has become such a solar hotspot. Solar panel installations have absolutely exploded over the last decade thanks to dropping equipment costs and supportive state-level policies. Get this – NH ranks #8 in the country for solar growth, with a whopping 5,655% increase in capacity since 2011!
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Driving this remarkable growth is New Hampshire‘s Renewable Portfolio Standard requiring 25% clean energy by 2025. Plus, high retail electricity rates averaging $0.24/kWh make solar savings significant.
By switching to solar myself, I‘ve shaved 80% off my utility bills and protected myself from volatile rate hikes. And you can do the same, with thousands in potential savings through incentives I‘ll outline below.
Snagging the 26% Federal Solar Tax Credit Before It‘s Too Late
As a tech analyst and solar geek, I‘ve been eagerly following the federal Investment Tax Credit for years. This phenomenal incentive offers a dollar-for-dollar reduction in your tax bill for installing solar panels.
Since it started in 2006, the credit rate held steady at 30% until 2019 when it began phasing down each year:
- 2020-2022: 26%
- 2023: 22%
- 2024+: 10% (commercial only)
So I cannot stress enough how crucial it is to act now before the credit drops again in 2023. At 26%, you can still slash more than a quarter off your total system costs!
For a typical 6 kW array running $17,000 here in NH, you‘d instantly save $4,420 off your federal tax bill – not too shabby! And over the life of your system, you‘ll end up pocketing thousands more from this credit alone.
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Now here‘s a pro tip: you must own your solar panels to claim this bad boy. Any leased or rented systems rented won‘t make the cut with Uncle Sam. Let‘s review a few other state perks…
New Hampshire‘s Generous Solar Rebate Program
Sprinkles on top of our federal sundae, New Hampshire sweetens the pot even further through our state‘s solar rebate initiative.
- You‘ll receive either $1,000 cash back or 30% of your total installation costs, whichever is less
- This applies on top of deducting the federal tax credit!
For our sample 6 kW system costing $17,000 pre-incentive, you‘d end up with the full $1,000 rebate. Not too shabby considering the fast application and payout timeframe.
We also mandate lucrative net metering policies here. This requires your utility company to purchase any surplus solar electricity you generate during sunny hours. They pay you at full retail electric rates!
So on a monthly basis, you can easily zero out your bill and start banking renewable energy credits. It‘s the ultimate win-win pairing sustainability with energy independence.
Crunching the Numbers: Payback Periods and Lifetime Savings
Now for the real meat and potatoes – let‘s analyze solar panel returns in granular detail with some handy calculations.
The average New Hampshire home uses around 650 kWh monthly, totaling 7,800 kWh annually. At our residential electricity rate of $0.24/kWh, that comes out to $1,872 per year paid to the utility company.
For a robust 6 kW solar array to offset this usage, you‘re looking around $17,000 after accounting for equipment and installation labor. Then factoring our two stellar incentives:
- Federal Tax Credit: $4,420
- NH Rebate: $1,000
Your True Out-of-Pocket Cost = $11,580
Now remember, with net metering you can wipe out at least 80% of your previous $1,872 annual bill. I like to use 75% here for a conservative figure:
- Annual Electricity Bill Pre-Solar: $1,872
- Annual Bill Post-Solar: $468
- Annual Savings = $1,404
Next we calculate what‘s called your "payback period" – the time it takes to recoup your initial investment through electricity savings:
- Total Out-of-Pocket System Cost: $11,580
- Annual Savings: $1,404
$11,580 / $1,404 per year = 8.25 Years
So less than a decade and the system pays for itself! And remember, modern solar equipment reliably lasts 25-30 years. Every additional year is nearly 100% free electricity:
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Across that lifespan you can expect to pocket over $40,000 versus sticking with the utility company‘s grid.
And don‘t forget the environmental incentives like eliminating carbon emissions and reducing pollution. I don‘t know about you, but saving money while saving the planet seems like a stellar combo!
Should you consider any alternatives like leasing from a solar provider? Let‘s explore:
Why Buying Beats Leasing Solar Panels in New Hampshire
Some homeowners are attracted to $0-down leases and power purchase agreements (PPAs) from third-party solar providers. I consulted two top local installers on this question, and both confirmed buying your system saves far more long-term.
The reason is losing access to incentives. Both our federal tax credit and NH cash rebate require direct ownership for eligibility. Right off the bat this leaves thousands in unearned savings on the table.
In very rare cases a lease may work out only for lower income households unable to afford any upfront investment. Just know that the 20+ year contract terms end up costing you notably more overall versus owning the panels yourself. Stick to buying whenever possible!
Let‘s Recap: Key Takeaways for New Hampshire Homeowners
- Generous 26% federal tax credit for 2022 but drops yearly
- Claim full $1,000 state solar cash rebate
- Net metering slashes monthly bills by ~80%
- 8 year payback period
- $40,000+ lifetime electricity savings
- Buying beats leasing for max incentives
Phew, I know that was a data download! But I‘m thrilled to help neighbors like you tap into solar and stop lining the pockets of utility giants.
You know the financials. You know the science. Now feel empowered to shop local installers and leverage these incentives like the pros! I‘m cheering New Hampshire onwards to a 100% renewable future – starting right at home.
Let me know if any other questions pop up!
