More than seven years after New Hampshire regulators first approved the idea of using community solar to create savings for low-income households, electric bill discounts are finally on the horizon for the first batch of participants.

“There has been this rhetoric that we want solar to benefit low-income people, but whenever we try to propose programs that will make that happen, they’ve been immensely slow to roll out,” said Sam Evans-Brown, executive director of the nonprofit Clean Energy New Hampshire. “But despite being frustrated, I am really glad this is finally happening.”

The state energy department is reviewing seven proposals for community solar arrays that will allocate a portion of the credits they receive for sending power onto the grid to low-income households in the form of credits on their monthly bills. The projects selected will work with the utilities to identify customers receiving discounted rates, who will be automatically enrolled in the program.

Community solar is widely considered an important strategy for extending the benefits of renewable energy to people unable to take advantage of rooftop solar. Nationally, some two-thirds of households can’t install solar panels, generally because they don’t own their home, don’t have a suitable roof, or can’t afford the cost of the array, said Kate Daniel, Northeast regional director for the Coalition for Community Solar Access. Those obstacles are particularly challenging for low-income households, which are more likely to rent, need costly roof repairs, or lack the cash or credit scores needed to pay for panels, she added.

Community solar, on the other hand, allows these households to buy renewable energy, supporting climate action and saving money. Recent research from the Lawrence Berkeley National Laboratory found that community solar users have, on average, 23% lower incomes than rooftop solar adopters and are six times more likely to live in multifamily homes, suggesting community solar helps increase adoption of solar among these populations. 

Why New Hampshire is important

Many states — including New Hampshire’s northeastern neighbors like Massachusetts and New York — have created programs to encourage the development of community solar projects that provide financial benefits to low-income households. But New Hampshire is falling behind: A recent report by the National Renewable Energy Laboratories, a federally funded research center, identifies New Hampshire as the state with the smallest share of its solar production going to disadvantaged households. 

“We really have to ask ourselves why that is,” Evans-Brown said. 

The first mandate for utilities to develop a program using community solar to benefit low-income households came as part of the order establishing the state’s current net metering system in 2017. Before a program could get off the ground, the state legislature passed a 2019 bill boosting the net metering rate for community solar projects serving low-income households, and the state suspended the earlier requirement until 2021, declaring it could be redundant given the new bill. 

In 2021, the state asked for — and received — an additional suspension until July 2022, arguing that it had only finalized the eligibility rules for the net metering adder in September 2020, and therefore the utilities should not have to develop their own programs until the adder had a full two years to potentially spark development. 

Then, in July 2022, the legislature passed a bill requiring the creation of a new community solar program including projects totalling up to six megawatts of capacity each year, each providing at least 25% of the credits it generates to low- or moderate-income customers. Customers will be automatically enrolled, but given ten days to opt out.

This program opened for proposals in December 2023, with a deadline of February 29, 2024. The state is now reviewing the seven proposals it received. If the applications total more than the six-megawatt cap, priority will be given to projects proposing greater benefits for low-income households.

“We are hammering out some of the final details with the utilities before we make the official designations,” said Joshua Elliott, director of policy and programs for the New Hampshire energy department. “Once we get the details of the processes finalized, we expect this process to move far more quickly in the future.”

‘To be determined’

There are elements of the program to like, advocates said. 

Traditionally, it has been difficult for solar developers to cost-effectively find and recruit low-income customers for community solar. New Hampshire’s strategy of working with utilities to automatically enroll households that have already been identified streamlines the process. The state’s plan to review the program each year is also a strength, said Kirt Mayland, a visiting professor at the Institute for Energy and the Environment at Vermont Law and Graduate School. 

Uncertainties remain, however. Enrolling customers from the utilities’ electric assistance programs may be more efficient for developers, but it runs the risk of missing a lot of low-income households that are eligible for the discounted rate but not signed up. To reach the largest possible number of potential subscribers, a program should also accept households enrolled in other means-tested programs, like Medicaid or SNAP, or even simply allow customers to self-attest their qualifying income. 

“The evidence on states with self-attestation has found there is very little fraud — it really does get over the barriers,” said Daniel, who is not very familiar with the New Hampshire program but has worked extensively with community solar in best practices. 

The small size of the program could mean small savings for each participating household, Mayland said.

“There’s a concern about how much money is actually getting placed on the low-income customer’s bill — sometimes it doesn’t blow you away,” he said. “It’s to be determined whether it’s an effective program to help out the low-income community in New Hampshire.”

New Hampshire’s low-income community solar program is finally nearing the starting line  is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Solar customers and clean energy advocates are waiting to see if New Hampshire will continue its system for compensating customers who share excess power on the grid. 

State regulators at a recent hearing seemed unconvinced about the policy’s benefits, despite support from utilities, customers, and hundreds of residents who submitted public comments on a proposed extension. 

“This commission is highly skeptical of anything involving energy efficiency or clean energy, and focused almost solely on cost,” said Nick Krakoff, senior attorney for the Conservation Law Foundation in New Hampshire. 

These compensation plans, generally referred to as net metering, are widely considered one of the most effective policies for encouraging more solar adoption. Recently, however, several states have changed or considered changing their programs, as utilities object that the policies are too costly and some politicians and policymakers push for more purely market-based approaches. 

New Hampshire’s net metering rules haven’t been modified since they were established in 2017. The state’s public utilities commission opened a case to consider the question of whether and how to adjust the rules in September 2022. A year into the proceedings, the state’s major electric utilities — Eversource, Liberty Utilities, and Unitil — came out in support of continuing the existing system of net metering, despite the tendency of utilities nationwide to consistently push for lower net metering rates. The move was a welcome surprise for environmental advocates. 

“If you don’t have a compensation rate that’s high enough, you’re not going to have customers that are going to want to invest in solar panels or other renewable energy,” Krakoff said.

Striking an agreement

In early August, a diverse coalition including the utilities, the Conservation Law Foundation, Clean Energy New Hampshire, Granite State Hydropower Association, Standard Power of America, and Walmart reached a settlement agreement about the future of the policy. 

The agreement calls for the state to keep the current net metering structure in place for two years; at the end of two years, utilities would propose time-of-use rates for net metering, so the compensation rate more closely matches the real-time value of the power being sent into the grid. Also, any projects that join the net metering program during those two years will receive the same compensation for 20 years before transitioning into whatever new system is created by then (currently the compensation ends in 2040). 

An influx of public comments has also reflected wide support for the tenets of the agreement. Nearly 450 comments were submitted since the beginning of the year, more than Sam Evans-Brown, executive director of Clean Energy New Hampshire, has ever seen in a public utilities case, he said. The vast majority urge the commission to maintain the current net metering system. 

Peterborough resident Brian Stiefel was among those who filed comments. He and his wife installed 37 solar panels on their home in 2021, at a cost of $51,000. Though the solar doesn’t fully cover their electric bills, it provides $2,000 to $3,000 in savings per year, in large part due to net metering. 

“A big part of the decision to do this was the fact that the state would approve us for net metering,” Stiefel said in an interview. “If that’s going to change it could have a significant financial impact on everybody who has panels and is set up with net metering.”

An uncertain path forward

However, clean energy advocates say they have seen some signs in recent months that the commission might not be paying much attention to the benefits the system creates, while seeking out evidence that net metering creates a cost burden for consumers who aren’t part of the program. 

“The concern is that the chair is looking for a cost shift and is going to do whatever it takes to find one,” Evans-Brown said. 

Last spring, the commissioner requested a series of records in the case, several focused on gathering information about other states’ net metering programs — information that did not seem relevant to the decisions needed in New Hampshire, Evans-Brown said. The commission also requested, in a different docket, information about stranded cost recovery, which it then placed into the record on the net metering case as well, a move energy advocates interpreted as an attempt to focus on costs to the exclusion of benefits.

Then, in hearings on August 20 and 22, the commissioners asked questions that seemed focused on finding costs being passed on to consumers, even though there is simply no such evidence on the record, Krakoff said.

Advocates’ concerns are magnified by the commission’s history: In 2021, the commission drastically reduced funding for the state’s energy efficiency rebate and incentives. Though the utilities, consumer advocates, and environmental groups had come to an agreement to raise funding for the programs, the commission claimed that the program would burden consumers and that the state should focus on promoting market-based energy efficiency services. 

Current commission chair Daniel Goldner was one of the commissioners who signed the energy efficiency decision. During his confirmation hearing earlier that year, Goldner expressed skepticism about climate science, and advocates raised concerns about his lack of experience in the energy field.

“They expressed strong skepticism of energy efficiency and actually gutted the program,” Krakoff said, comparing that case to the present-day net metering proceedings. “It’s very concerning.”

Now advocates, homeowners, and other stakeholders can only wait to see what the commission decides and when they decide it. An order could come by the end of the year, said Evans-Brown, or the commissioners could decide to push the matter well into the new year — there are no deadlines set on the process. 

Should the commission in some way reject the settlement, there is still hope the legislature would take action to protect net metering. As part of the proceeding, state Sens. Kevin Avard, Howard Pearl, and David Watters submitted a letter explaining their belief that reducing net metering compensation would be against the goals of the legislature. 

“It is the intent of the legislature to preserve a viable net metering program in the state of New Hampshire, and we will take action to do so if necessary,” they wrote.

Resolving the question through legislative action, however, would leave the matter open and undecided for even longer, making it harder to encourage solar development in the state, advocates noted. 

“We were expecting this to be a challenging docket when this was first announced,” Evans-Brown said. “It’s frustrating, but not surprising.”

In net metering case, New Hampshire regulators focus on costs while ignoring benefits, advocates say is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

A recently signed New Hampshire law makes significant changes to the operations of the state’s Renewable Energy Fund, directing money to help towns and cities develop municipal solar projects and ending a residential solar rebate program that was generally viewed as deeply flawed. 

“The previously existing program had sort of run its course,” said Joshua Elliott, director of policy and programs in the state energy department.

The Renewable Energy Fund, created in 2007, is a pool of money the state uses to support renewable and thermal energy initiatives through grants and rebates. It is funded by annual compliance payments made by electric service providers that failed to buy the legally mandated proportion of their power from renewable sources in the previous year. 

The sum the fund collects can vary widely from year to year, ranging from as low as $1.3 million in 2009 to $19.1 million in 2011. More recently, revenue has hovered around $7 million. 

This money is then allocated across several programs including those supporting solar hot water heating, low-and-moderate income community solar, and wood pellet boilers and furnaces for residential, commercial, and industrial customers. 

Advancing municipal solar

The new funding for municipal solar projects represents the next step for an approach just getting underway in the state. 

Installing solar power can allow a municipality to both cut carbon emissions and realize significant savings on their energy bills. These savings can be used to cut property taxes or to provide additional support or services for residents. Until recently, however, there was little state or federal support for municipal solar. At the same time, getting a municipality to agree to the upfront costs has always been challenging. 

“There’s a variety of competing factors for property tax revenue,” Elliott said. “It can be hard to get a warrant article passed to invest the money to purchase a solar array for town buildings.”

The state began tackling the problem this year with the Municipal Solar Grant Program, which is using a $1.6 million federal grant, part of the 2021 Bipartisan Infrastructure Law, to help cities and towns install solar arrays on municipal property. Lower-income communities that intend to retain complete ownership of their solar system will be eligible for grants up to $200,000; municipalities that don’t meet these criteria can request grants up to $120,000.

Though the program is just getting started — the application period is open until August 1 — the opportunity has already sparked wide interest from municipal governments. Community liaisons for the nonprofit Clean Energy New Hampshire have identified roughly 50 cities and towns likely to apply for a share of the limited funding. 

“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.”

The new legislation calls for funding to be allocated to a new municipal solar program this year, with the sum likely to be announced in late August or early September. Then, before the money can be offered to cities and towns, the state will have to design a new system. The new incentive will be inspired and informed by the program now launching, Elliott said. 

“We’re certainly going to take feedback, have stakeholder sessions,” he said. “And that will help refine what this program looks like.”

Replacing residential incentives

The bill also terminates the state’s rebate program for residential solar and wind installations, an incentive that was widely thought to be ineffective.

The program offered rebates of up to $1,000 to a limited number of households each year. In fiscal 2023, rebates totalling about $424,000 were issued. 

The program used a lottery system to determine what order rebate applications would be processed in each year; applicants closer to the end of the list might not end up receiving any rebate if the funds ran out before they made it to the top of the list. That uncertainty meant the program was doing little to spur additional solar development, Evans-Brown said. 

“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,” he said. “When we asked residential solar installers if the rebate was helpful they said no.”

The program also accepted applications from any household with a solar array installed after 2012 that has not yet received a rebate, diminishing its impact on new solar development even further. 

“You’re not actually helping to develop the solar market at that point,” Elliott said. 

Though the recent law eliminates this rebate, lawmakers were clear during hearings on the bill that they want to see a replacement residential incentive developed. No plans are yet in the works for such a program, and it is unclear what the timeline would be for designing a new incentive from scratch, Elliott said. Furthermore, the law does not require a new program be enacted.

Elliott, however, has every intention of making sure a replacement program comes to be, he said.

“I made a commitment in public saying, ‘Yes, we are going to do this,’” he said, “and I certainly feel beholden to that.”

New Hampshire law provides new solar incentives for cities, drops ineffective consumer rebate program is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.