Solar Rebates and Incentives
Listing of Rebates, Tax Credits, Grants, Loans and Other Incentives for Installing Renewable Energy in Maine and New Hampshire
Aggressive federal and state solar rebates and lower equipment costs make solar technology a more affordable investment than ever before for homeowners in Massachusetts, Maine and New Hampshire. Specific rebates vary based on the type of system you are interested in.
At a Glance: Solar Rebates by State/System:
| State | Solar Hot Water | Solar Photovoltaic |
|---|---|---|
| Maine | 30% + $2,000 max | 30% + $2,000 max |
| New Hampshire | 30% + $1,500 avg | 30% + $3,750 max |
| Massachusetts | 30% + $1,500 avg | 30% + $5,250 max + SREC payments |
At a Glance: Rough Solar Costs After Rebates by State/System:
| State | Solar Hot Water | Solar Photovoltaic |
|---|---|---|
| Maine | $5,500 - $6,400 | $5,000 - $21,000 (ROI in 10 yrs) |
| New Hampshire | $5,850 - $6,700 | $4,800 - $19,000 (ROI in 9 yrs) |
| Massachusetts | $6,215 - $6,698 | $5,600 - $19,000 + SREC payments (ROI in 5 yrs) |
For assistance getting ballpark system economics for your home, you can use either our solar electric system calculator, or solar hot water system calculator.
Read on for in-depth descriptions of the rebates available state-by-state and by technology
Residential Solar Electric Rebates
These rebates apply to grid-tied solar electric systems for homes.
Maine Solar Photovoltaic Rebates
This recent solar installation in Newmarket, New Hampshire benefited from roughly $10,000 in state and federal incentives.
- 30% federal tax credit uncapped based on system size, average $4,000 - $10,000. This is claimed on IRS form 5695 (PDF link).
- Up to $2,000 state rebate from Efficiency Maine. Most common installations merit a full $2,000, smaller systems are eligible for a bit less. You can see how the rebate scales using our Solar Calculator. Pre-application is required and final payment received after project is installed.
Example: A 3kw system costing $13,500 is eligible for $6,050 in incentives, for a net investment of $7,450. The system will pay for itself in around 12 years.
New Hampshire Solar Photovoltaic Rebates
- 30% federal tax credit uncapped based on system size, average $4,000 - $10,000. This is claimed on IRS form 5695 (PDF link).
- Up to $3,750 State rebate - $0.75/watt. Realistically the biggest system that can be designed to meet state regulations is 4.8kw, so the maximum practical rebate is $3,600.
Example: A 3kw system costing $13,500 is eligible for $6,300 in incentives, for a net investment of $7,200. The system will pay for itself in around 11 years.
Massachusetts Solar Photovoltaic Rebates
- 30% federal tax credit uncapped based on system size, average $4,000 - $10,000. This is claimed on IRS form 5695 (PDF link).
- $0.85/watt up to $4,250 state rebate from Massachusetts Clean Energy Center (CEC); rebate varies based on type of equipment chosen, home value and/or household income.
- $1,000 state income tax credit from Massachusetts government.
- Solar Renewable Energy Certificates (SREC) worth from $0.29/kWh - $0.55/kWh, a market-based value for your solar electric production paid for by utilities trying to meet this Renewable Energy Portfolio (RPS) requirements.
Example: A 3kw system costing $13,500 is eligible for $7,600 in initial incentives, for a net investment of $5,900. In addition to generating $610/year worth of electricity, the system will also produce an average of $1,100/year in SREC payments depending on market conditions, for a payback period of under 3 years.
Residential Solar Hot Water Rebates
This awning mounted solar hot water system in Bethel, Maine is eligible for an average $1,800 State of Maine rebate.
These apply to solar thermal installations used to heat domestic hot water:
Maine Solar Thermal Rebates:
- 30% federal tax credit uncapped based on system size, up to $2,000. This is claimed on IRS form 5695 (PDF link).
- Up to $2,000 state rebate for installing a solar hot water system, averages around $1,800 for most common residential installations.
Example: An $11,000 solar thermal system that provides hot water for a family of four costs is eligible for $4,300 in incentives, for a net investment of $6,700. Based on a savings of 300 gallons of oil/year at $3.80/gal, the system will pay for itself in about 6 years.
New Hampshire Solar Thermal Rebates:
- 30% federal tax credit uncapped based on system size, up to $3,750. This is claimed on IRS form 5695 (PDF link).
- $1,500 average state rebate for installing a solar hot water system. NHEC customers are eligible for an additional, limited $750 solar thermal rebate.
Example: An $11,000 solar thermal system that provides hot water for a family of four costs is eligible for $4,800 in incentives, for a net investment of $6,200. Based on a savings of 300 gallons of oil/year at $3.80/gal, the system will pay for itself in under 6 years.
Massachusetts Solar Thermal Rebates:
- 30% federal tax credit uncapped based on system size, generally $3,000. This is claimed on IRS form 5695 (PDF link).
- Up to $3,500 state rebate for installing a solar hot water system. Rebate varies based on number of collectors and origin of manufacture.
Example: An $11,000 solar thermal system that provides hot water for a family of four costs is eligible for $4,940 in incentives, for a net investment of $6,000. Based on a savings of 300 gallons of oil/year at $3.80/gal, the system will pay for itself in under 6 years.
Learn More About Solar Rebates
There is a wealth of information about loans and grants available at DSIRE (Database of State Incentives for Renewables & Efficiency) - see their page for Maine solar incentives and for New Hampshire solar incentives.
Also see commercial rebates and incentives for apartment buildings, restaurants, hotels, senior living facilities, and other organizations.
Contact us with any questions about solar loans, grants, and rebates as they apply to your specific situation.
