A recently enacted law in New Hampshire introduces significant changes to the state’s Renewable Energy Fund. This new legislation aims to allocate resources to assist towns and cities in developing municipal solar projects. Meanwhile, it discontinues a residential solar rebate program that has been widely criticized for its inefficacy.
In the past, New Hampshire’s Renewable Energy Fund has fluctuated in terms of annual revenue, with notable highs and lows. The fund, established in 2007, gathers money through compliance payments from electric service providers who fail to meet renewable energy purchasing requirements. Previously, the fund has supported various renewable energy initiatives, including solar hot water heating and wood pellet boilers for different sectors. However, the new legislation marks a shift in focus to municipal solar projects.
Municipal Solar Programs Gain Momentum
The new financial support for municipal solar projects signifies a shift towards broader adoption of solar energy within the state. Municipalities are now presented with a valuable opportunity to reduce carbon emissions and lower energy expenses. These funds can help lessen property taxes or enhance community services. Despite this, the initial cost of setting up solar infrastructures has always been a significant hurdle.
“There’s a variety of competing factors for property tax revenue,” said Joshua Elliott, director of policy and programs in the state energy department. “It can be hard to get a warrant article passed to invest the money to purchase a solar array for town buildings.”
In response, the Municipal Solar Grant Program was initiated earlier this year, funded by a $1.6 million federal grant from the 2021 Bipartisan Infrastructure Law. This program aims to aid less affluent communities in installing solar systems, offering up to $200,000 for eligible municipalities. This initiative has already attracted significant interest from around 50 cities and towns, indicating strong community support.
“There’s been a huge response,” said Sam Evans-Brown, executive director of Clean Energy New Hampshire. “That shows this is a good space to be spending the money in.”
Ending Ineffective Residential Rebates
The law also terminates the state’s rebate program for residential solar and wind installations. This program, criticized for its inefficacy, provided rebates up to $1,000 to a limited number of households annually. However, the lottery system used to allocate rebates often left many applicants without any support, ultimately limiting its impact on solar development.
“It’s almost by definition not getting projects done: If you can’t know for sure if you’re getting rebate, it’s not factoring it into the purchasing decision,” said Evans-Brown.
Additionally, the program’s acceptance of applications from households with solar arrays installed post-2012, but not yet rebated, further diluted its effectiveness in promoting new solar projects. While there is no immediate replacement for this residential incentive program, policymakers have expressed their intention to create a more effective alternative in the future. However, there is no timeline or mandatory requirement for this new program to be implemented.
“I made a commitment in public saying, ‘Yes, we are going to do this,’” said Elliott, “and I certainly feel beholden to that.”
Shifting focus from household incentives to municipal solar projects represents a strategic move in New Hampshire’s renewable energy policy. With strong community interest and federal support, the Municipal Solar Grant Program sets a promising precedent for future initiatives. However, the gap left by the discontinued residential rebate program highlights the need for carefully designed incentives to support all sectors. Policymakers will need to ensure that future programs are both effective and equitable in promoting renewable energy adoption across the state.
