Solar power initiative in New Hampshire under threat due to government raid on clean energy fund
The New Hampshire state energy department had initially planned to use funds from the renewable energy fund to support solar projects developed by municipal governments, as part of an effort to save towns money and reduce greenhouse gas emissions from electricity generation. However, a recent budget decision has redirected an estimated $15 million from the renewable energy fund into the general fund, likely signalling the end of plans to expand the popular Municipal Solar Grant Program.
Established in 2007, the renewable energy fund receives money from electric service providers that fail to meet their renewable power obligations. The fund, which traditionally supported a variety of renewable energy incentives, had a balance of nearly $15.3 million at the beginning of fiscal year 2024.
Thirty towns applied for funding through the pilot program, with sixteen towns selected to receive grants ranging from $45,000 to $200,000. The program, which aims to help towns overcome hurdles in installing solar panels on municipal property, received $1.6 million in funding from the federal Bipartisan Infrastructure Law passed in 2021.
The Municipal Solar Grant Program, launched in 2024, has a focus on small or economically disadvantaged towns. Such developments offer financial and environmental benefits, saving money for towns and reducing greenhouse gas emissions from electricity generation.
The budget redirecting funds away from the renewable energy fund has left the program with very little funding left. In the latest budget, only $1 million is left annually for programs in the renewable energy fund, which, in fiscal year 2024, cost more than $5 million to administer.
The search results do not provide information on who will claim the funds from the New Hampshire state solar energy fund for promoting municipal solar projects once the budget is passed. The reluctance of voters in New Hampshire to approve the upfront cost of solar installations, despite their potential long-term savings, remains a challenge for municipal solar projects in the state.
Nick Krakoff, senior attorney in New Hampshire for the Conservation Law Foundation, stated that this is a big step backward for renewable energy in the state. The future of the Municipal Solar Grant Program and the expansion of municipal solar developments in New Hampshire now hangs in the balance.
