Are Solar Panels Worth It? Payback Period, ROI, and New Hampshire Examples
For some New Hampshire homeowners, solar panels are a sound long-term investment. For others, absolutely not.
One homeowner we analyzed would need nearly 20 years to recover their solar investment. Another homeowner, with a different roof, a higher electric bill, and a better-sized proposal, was projected to break even in roughly 14 years and generate a meaningfully higher return. The difference was not the state. It was not the installer. It was the economics of the proposal itself.
Evaluating a proposal of your own? Run it through the BlueLine Advisors Solar Investment Analysis tool to see the projected payback, IRR, and long-term savings on your own numbers.
Analyze Your Solar ProposalSolar panels in New Hampshire often project payback periods in the 9–14 year range when systems are appropriately sized and installed at reasonable costs. Actual outcomes vary substantially. Whether solar is worth it depends on system cost, projected savings, financing terms, net metering benefits, roof characteristics, electricity usage, and assumptions about future utility prices.
- Favorable New Hampshire solar proposals often project 9–14 year payback periods.
- Net metering remains a significant contributor to long-term savings.
- Utility inflation assumptions can materially affect projected returns.
- Cost alone does not determine value.
- Independent analysis is often more valuable than installer marketing projections.
| Factor | 2026 Status |
|---|---|
| Federal Residential Tax Credit | Expired Dec. 31, 2025 |
| State Sales Tax | None |
| Net Metering | Available under current rules through 2041 |
| Property Tax Exemption | Available in many municipalities |
| Typical Payback Range | ~9–14 years for favorable systems |
| Typical Analysis Horizon | 25–30 years |
Two New Hampshire Solar Examples: Same State, Different Outcomes
We reviewed two anonymized homeowner scenarios using inputs from solar proposals.
| Metric | Exeter, NH | Manchester, NH |
|---|---|---|
| Net system cost | $18,073 | $35,248 |
| Projected annual savings | $924 | $2,500 |
| Simple payback | ~20 years | ~14 years |
| Projected IRR (3% utility inflation) | ~1.5% | ~6.5% |
Same State, Different Returns
Projected IRR and simple payback for two real NH proposals (3% utility inflation)
Hypothetical estimates generated using the BlueLine Advisors Solar Investment Analysis tool. See Important Disclosures below.
At first glance both proposals appeared reasonable. Once the numbers were analyzed carefully, the projected outcomes were dramatically different. These examples illustrate why averages are often misleading. Solar economics are household-specific.
What Happened to the Federal Solar Tax Credit?
Before evaluating any proposal, homeowners need to understand a significant recent change. The federal residential solar tax credit (Section 25D) expired on December 31, 2025.
For years, the credit reduced net system costs by 30% and played a major role in solar economics. Many online calculators and older installer materials still assume the credit exists. If a proposal relies on those assumptions, it should be updated before meaningful analysis can occur.
What remains available in New Hampshire includes net metering, no state sales tax, and a property tax exemption adopted by many municipalities.
How Much Do Solar Panels Cost in New Hampshire?
Residential solar systems in New Hampshire typically cost approximately $20,000 to $40,000 before financing costs, depending on system size, equipment selection, roof complexity, and installation requirements.
A lower-cost system can produce weaker economics if projected production is modest. A more expensive system may generate stronger returns if it offsets a much larger portion of household electricity consumption.
How Does Net Metering Work in New Hampshire?
Net metering allows homeowners to receive credits for excess electricity produced by their solar system and sent back to the grid. Under current New Hampshire rules, excess production is generally credited at approximately 85% of the retail electricity rate.
How Utility Inflation Changes Projected Returns
Utility inflation is often one of the most important variables in any solar analysis. When electricity prices increase over time, the value of solar-generated electricity increases as well.
Using the BlueLine Advisors Solar Investment Analysis tool, we modeled scenarios using 2%, 3%, 5%, and 7% annual utility inflation assumptions. The differences were meaningful. Attractive returns can deteriorate quickly when aggressive assumptions are replaced with more conservative ones.
Why the Inflation Assumption Matters
Illustrative effect of utility-rate inflation on projected IRR (Manchester proposal)
Illustrative sensitivity scenarios generated using the BlueLine Advisors Solar Investment Analysis tool. The 3% figure (~6.5% IRR) reflects the modeled base case for the Manchester proposal; other points are illustrative and shown to demonstrate sensitivity, not to predict results. See Important Disclosures below.
Solar Panels as an Investment
Many solar proposals emphasize simple payback. Payback is useful, but it does not tell the entire story.
A more complete analysis incorporates Internal Rate of Return (IRR), Net Present Value (NPV), maintenance costs, panel degradation, and the timing of future savings. These measures help homeowners understand whether a project remains attractive when viewed over a 25- or 30-year horizon.
Factors That Affect Solar ROI in New Hampshire
- System cost
- Household electricity usage
- Roof orientation and shading
- Utility rates
- Utility inflation assumptions
- Financing terms
- Net metering treatment
- Maintenance expenses
- Panel degradation
- Expected time in the home
How We Modeled These Examples
The Exeter and Manchester examples were generated using the BlueLine Advisors Solar Investment Analysis tool.
Note: All figures are hypothetical estimates generated using the BlueLine Advisors Solar Investment Analysis tool and are illustrative only. They do not represent a guarantee, prediction, or projection of actual results. See Important Disclosures below.
Assumptions included a 30-year analysis horizon, annual panel degradation of 0.5%, annual maintenance costs of $200, and an inflation-adjusted roof replacement cost of $5,000 in Year 15.
Before You Sign: Run the Numbers First
The single most valuable step before signing a solar contract is performing independent analysis. The BlueLine Advisors Solar Investment Analysis tool estimates projected payback period, IRR, NPV, and cumulative long-term savings using household-specific inputs.
Analyze Your Solar ProposalQuestions to Ask Before Signing a Solar Contract
- What utility inflation rate was assumed?
- What panel degradation rate was used?
- What maintenance costs are excluded?
- Does the analysis assume perfect production every year?
- Is roof replacement included?
- What happens if you move before payback?
- Has the proposal been updated to reflect the expiration of the federal tax credit?
Frequently Asked Questions
Is New Hampshire a good state for solar panels?
For many homes, yes. Above-average electricity rates and net metering can support favorable economics.
What is a typical solar payback period?
Many favorable systems project payback periods in the 9–14 year range, although results vary considerably.
Can solar eliminate my electric bill?
Some systems offset most household electricity usage, but many systems reduce rather than eliminate utility costs.
Bottom Line
The question is not whether solar panels are worth it in New Hampshire. The question is whether your proposal is worth accepting.
Solar can be a strong long-term investment. It can also be an expensive disappointment. The difference is in the numbers.
This material is provided by BlueLine Advisors LLC (“BlueLine”) for informational and educational purposes only and is not intended as investment, tax, or legal advice. Nothing herein should be construed as a recommendation to buy or sell any security, to adopt any investment strategy, or to purchase or install any product or service.
BlueLine Advisors LLC is a registered investment adviser with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training.
All information reflects the views of BlueLine as of the publication date and is subject to change without notice. Forward-looking statements, projections, outlooks, and illustrative examples are not guarantees of future performance and are based on assumptions that may not be realized. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Asset values fluctuate, and investors may receive back less than the amount invested.
Consult qualified tax, legal, and financial professionals before making any financial decision. For additional information about BlueLine Advisors LLC, including our Form ADV Part 2A, please visit www.blueline-advisors.com/disclosures.
All IRR, payback, savings, and related figures referenced in this article, including the Exeter and Manchester examples and the utility-inflation sensitivity scenarios, are hypothetical estimates generated using the BlueLine Advisors Solar Investment Analysis tool and the assumptions described in the article. They are illustrative only and do not represent a guarantee, prediction, or projection of actual results.
Metric definitions. Internal Rate of Return (IRR) is the annualized rate of return at which the present value of an investment’s projected cash flows equals its initial cost. Net Present Value (NPV) is the value today of a series of future cash flows, discounted at a chosen rate, less the initial cost. Simple payback period is the time required for cumulative projected savings to equal the net cost of the system. Net metering is a utility billing arrangement under which a homeowner receives credit for excess electricity their system sends back to the grid.
Source. New Hampshire net metering treatment reflects current rules of the New Hampshire Public Utilities Commission (puc.nh.gov). Federal tax credit status reflects IRS guidance (irs.gov). Regulatory and incentive provisions are subject to change; verify current status before relying on them.