A 2025-26 Professional’s Guide
By Sudeep S., Professional Electrical Engineer
With 25 years of experience in Engineering, Procurement, and Construction (EPC) of solar power plants, I’ve guided countless homeowners and businesses in New Hampshire through the process of going solar. The most common question I’m asked is, “How much will a solar panel system really cost me?”
It’s a crucial question, and the answer is more positive than many expect. While there is an upfront investment, powerful incentives and long-term savings make solar an exceptionally smart financial decision for most New Hampshire residents. This guide will break down the average costs, potential savings, and key factors you need to make an informed decision.
Current Solar Panel Costs in New Hampshire
As of late 2025, the average cost for solar panels in New Hampshire is about $3.03 per watt before any incentives are applied . This means a typical residential system sized to offset an average home’s electricity consumption will have the following price range:
For a more detailed look, here is a breakdown of how system size influences the total cost :
| System Size | Average Cost Before Incentives | Typical Home Size |
|---|---|---|
| 5 kW | $15,173 | Smaller home / low consumption |
| 10.43 kW (NH Average) | $31,651 | Average New Hampshire home |
| 10 kW | $30,345 | Larger home / high consumption |
It’s important to understand that these figures represent the gross cost. Very few homeowners pay this full amount thanks to significant federal and state incentives.
How Incentives Dramatically Reduce Your Net Cost
This is where the financial picture becomes truly attractive. A combination of programs can reduce your initial investment by thousands of dollars.
Federal Residential Clean Energy Credit
The most significant incentive is the 30% federal tax credit. This allows you to deduct 30% of your total system cost from your federal income taxes . For the average $31,651 system, that translates to a credit of $9,495 . This credit is scheduled to remain at 30% through 2032, making now a stable time to invest .
New Hampshire-Specific Incentives
The Granite State offers several valuable local incentives:
- NH PUC Rebate Program: The state offers a rebate of up to $1,000 (or 30% of the system cost, whichever is less) for residential solar installations .
- Property Tax Exemption: Many towns in New Hampshire have adopted a property tax exemption for renewable energy systems. This means the value added to your home by your solar array will not increase your property taxes, protecting your investment and savings .
- Net Metering: New Hampshire has a net metering policy, often called “solar buyback.” When your system produces more electricity than your home uses, the excess is sent to the grid. You receive credits from your utility that offset your future bills. Under the current program, these credits are valued at about 25% less than the full retail rate, which is still quite favorable .
The Bottom-Line Cost
After the 30% federal tax credit, the net cost for an average-sized system drops from $31,651 to around $22,156 . When you factor in the state rebate, your final investment becomes even more manageable.
The Long-Term Savings: Your Return on Investment
Solar panels are a long-term investment, and the returns in New Hampshire are robust. With high electricity rates—currently around 22 to 23 cents per kilowatt-hour—the savings on your utility bills add up quickly .
- Average Payback Period: Most homeowners in New Hampshire see a return on their investment in about 8 to 8.5 years . This is the point where your cumulative savings on electric bills equal your initial net investment.
- 25-Year Savings: Over the 25-year warranty period of standard panels, the average New Hampshire homeowner can expect total savings of approximately $88,209 . That’s money kept in your pocket instead of paid to the utility company.
Key Factors That Influence Your Final Solar Price
The averages are helpful, but your final quote will depend on several home-specific factors. As an engineer, I carefully evaluate each of these during a site assessment:
- Your Energy Consumption: Your historical electricity usage (found on your utility bills) is the primary driver for determining the size of the system you need. A larger system costs more upfront but also delivers greater long-term savings.
- Roof Characteristics: The condition, pitch, size, and orientation of your roof all impact the cost. A simple, south-facing roof with no shading is the most straightforward and cost-effective to equip. Complex roofs with multiple angles or obstructions may require more labor and specialized equipment.
- Equipment Quality: Not all solar panels and inverters are created equal. Higher-efficiency panels, such as monocrystalline models, cost more but produce more power in a smaller area, which is ideal for limited roof space . Your choice of inverter—whether a central string inverter or more advanced microinverters—also affects cost and performance, especially if your roof has partial shading .
- Installation Partner: The company you choose is critical. A reputable, experienced installer will provide a fair price, high-quality workmanship, and robust warranties, ensuring your system performs for decades. I always recommend getting multiple quotes to compare.
Financing Your Solar Investment
You don’t need to have the full cash amount on hand to go solar. There are several well-established paths to ownership:
- Cash Purchase: Paying upfront yields the highest long-term savings because you avoid loan interest, unlocking the full financial return.
- Solar Loan: Many homeowners choose $0-down solar loans, which allow you to start saving from day one. Your monthly loan payment is often designed to be less than your previous electric bill, providing immediate cash flow positivity . Just be mindful of the interest rate and terms.
- Solar Leases or PPAs: These “third-party” models require little to no money down, but a company owns the system, and you pay for the electricity it produces. While they offer some savings, the long-term financial benefits are significantly lower than with system ownership .
My Professional Recommendation
Based on my 25 years in the field, my strong recommendation for most homeowners is to purchase your system outright with cash or through a solar loan. While the initial investment is higher, this is the only way to take full advantage of the tax credits, maximize your 25-year savings, and increase your property value.
Solar is more than just an energy upgrade; it’s a financial asset that locks in a predictable, low rate for your electricity for decades, protecting you from rising utility costs. The combination of New Hampshire’s high electricity rates, strong incentives, and excellent solar resources makes this one of the smartest investments a homeowner can make.
If you’re considering solar, I advise you to start the process by getting quotes from two or three pre-vetted, local installers. This will give you a precise, personalized picture of the cost and savings for your specific home.
To your energy independence,
Sudeep S.
Professional Electrical Engineer | Solar & Battery Specialist