Exemption for Solar Energy System

"Solar Energy System" is defined as a system as defined by RSA 72:61 which:

 1)  utilizes solar energy to heat or cool the interior of a building or to heat water for use in a building and which includes one or more collectors and a storage container; or

2)  provides electricity for a building by the use of photovoltaic panels.

Property tax exemptions for solar energy systems shall be in an amount equal to any increase in incremental assessed value of the entire property attributable to the qualifying equipment that is in excess of the property’s assessed value attributable to conventional electrical and heating systems that:

1)  are currently part of the property;

2)  were part of the property immediately prior to the installation of the solar energy system; or

3) were of an equivalency that would typically be expected by the market in such a property absent the solar energy system.

Property that includes an installed solar energy system for which an exemption was granted prior to the update to this exemption policy of February 16, 2015 will be considered “non-conforming” and will continue to receive an exemption under the previous policy as long as the system is in good working order. The “cost” referenced in the previous policy shall mean “installation cost.”

When a property that includes an installed solar energy system that is “non-conforming” transfers ownership, the solar exemption shall cease, and the revised solar exemption policy shall be implemented as of April 1 of that tax year.

 Every five years during the Town’s assessment revaluation period the Assessor shall confirm the functioning and condition of each solar energy system (“asset”) and then apply depreciation to determine the contributory value of that asset to the aggregate Town assessment to be reported to the State.

• Please provide cost documentation of the solar energy system by April 15th for any system installed and operational by April 1st of the same year. An application will be filled out at time of submittal.
• For example, a system installed and operational February 20th, 2016 would need to file for an exemption by April 15, 2016.  
• A system installed after April 1st--for example on June 20th, 2016--would not need to file an application until April 15th, 2017.

State information on this exemption can be found at RSA 72:62.