Renewable Energy Incentives: Local, State, Federal

Federal, State and Local governments have developed financial incentive programs to help encourage the development of renewable energy. Below is a list of programs available to New Hampshire residents who have installed or are interested in installing a renewable energy system for their home or small business.

New Hampshire Incentives

• State Incentives:

• Renewable Energy Generation Incentive Program: HB1628 authorizes the Public Utilities Commission to make a one-time payment from the renewable energy fund to certain owners of small renewable generation facilities. OEP has created a summary of the process being developed by the PUC.
• Net Metering: NH Public Utilities Commission Code 900 provides for net metering , which permits homeowners to receive credit for on-site electricity generation such as from a solar photovoltaic (PV) or wind turbine installation when the generation exceeds household consumption. This is accomplished by use of an electric meter that can run both forward and backward so that the homeowner is billed only for the net reading on the meter.
  
• Local Incentives:
  
• Renewable Energy Property Tax Exemption: NH RSA 72:61-72 permits cities and towns to offer exemptions from local property taxes for certain renewable energy installations. These include solar thermal (for example, to heat water), solar photovoltaic (to generate electricity), wind (to generate electricity) and central wood-fired heating systems (not stoves or fireplaces).

76 cities and towns have adopted one or more renewable energy property tax exemptions as of 7/14/08. Please consult local officials for current renewable energy tax exemption status.

If your city or town does not currently offer such exemptions, see procedures for adopting local property tax exemptions. Note: local officials may be unaware of exemptions, as the exemptions may have been adopted as long as 30 years ago.

If you live in a city or town that offers exemptions and you have an installation that qualifies, you may apply for an exemption by completing the NH Department of Revenue Administration Form PA-29.

OEP recommends that homeowners and municipal officials consult the NH Department of Revenue Administration with any questions regarding the renewable property tax exemption laws and their application.

• Federal Incentives: Generally, the federal government does not provide grants, loans or rebates for the purchase or installation of renewable energy equipment. However, other significant incentives are available in the form of income
  tax credits:
  
  • The Energy Policy Act of 2005 (EPACT 05) offers several renewable energy and energy efficiency tax credits for items put into use on or after January 1, 2006. A tax credit is a dollar-for-dollar reduction of income tax due, not a reduction in taxable income; thus the money spent for qualifying measures is 100% recoverable up to the dollar amount or percentage of actual cost allowed under the law. End dates for qualifying items and measures vary. The U.S. Internal Revenue Service (IRS) will post appropriate credit application forms as they are developed. A simplified summary of the incentives is also available.
  • USDA Renewable Energy and Energy Efficiency Program: Created under the Farm Bill 2002, this program offers grants and guaranteed loans to agricultural producers and small businesses who install renewable energy systems and other efficiency improvements. NH/VT region typically receives approximately 2 million annually whose funds go towards projects such as methane recovery systems on dairy farms used to produce electricity, biomass boiler systems, lighting upgrades and reverse osmosis systems for maple syrup producers. For eligibility criteria and additional information, please visit the USDA regional office or call them at 603-223-6000.

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