Local Option - Energy Efficiency & Clean Energy Districts (New Hampshire)

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Last modified on February 12, 2015.

Financial Incentive Program

Place New Hampshire

Name Local Option - Energy Efficiency & Clean Energy Districts
Incentive Type PACE Financing
Applicable Sector Commercial, Industrial, Residential, Multi-Family Residential, Agricultural, Waste heat
Eligible Technologies Lighting, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Duct/Air sealing, Building Insulation, Windows, CHP/Cogeneration, Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, CHP/Cogeneration, Daylighting
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Start Date 2010-08-27

Funding Source Locally determined

Terms Locally determined
Program Administrator Local community

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Note: '''''In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.

H.B 532 enacted in August 2014 included various amendments to the PACE program in regards to financing, eligibility and enforcement. These changes are effective after September 30, 2014.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money from a local government to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. New Hampshire has authorized local governments to establish such programs, as described below. (Not all local governments in New Hampshire offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

New Hampshire enacted legislation in June 2010 (H.B. 1554) authorizing the state's cities, towns and village districts to establish energy efficiency and clean energy districts. To create such a district, a local government may incur debt (including through issuance of municipal revenue bonds, Qualified Energy Conservation Bonds or Clean Renewable Energy Bonds), establish revolving funds, provide financing and collect assessments to implement the program. H.B 532 enacted in August 2014, allows additional flexibility to obtain financing from private individuals or institutions. The act also requires the municipality to notify and get consent of any prior mortgages or liens that exist in the property before providing a municipal lien. The municipality may still choose to make a loan even if the mortgagees or lienholders do not consent, however in such case during the event of foreclosure, the municipal lien shall be extinguished. Legislation enacted in July 2011 (H.B. 144) specified that PACE liens are junior to any existing liens.

Owners of private property (zoned for residential, commercial, industrial or "other" uses) may opt in to an energy financing district after such a district has been created and may obtain funding for a broad array of energy efficiency upgrades and/or renewable energy investments that are permanently affixed on or off the property. Energy improvements must be installed by qualified contractors after an energy audit is conducted.

The minimum total amount of assessments for a single-family property is $5,000, and the maximum is $35,000 or 15% of the assessed value of the property multiplied by the municipality's current equalization ratio, whichever is less. For other properties, the maximum is $60,000 or 15% of the assessed value of the property multiplied by the municipality's current equalization ratio, whichever is less.

In November 2010, the town of Durham became the first in New Hampshire to establish a PACE financing program.

Authorities (Please contact the if there are any file problems.)

Authority 1: New Hampshire Statutes § 53-F
Date Effective 2010-08-27
Date Enacted 2010-06-28

Authority 2: H.B. 532
Date Effective 2014-09-30
Date Enacted 2014-08-01

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content