Understanding New Hampshire’s Renewable Portfolio Standard (RPS)

New Hampshire’s Renewable Portfolio Standard (RPS), established by state law (RSA 362-F), is a foundational policy driving the state’s clean energy transition. The RPS requires electricity providers—including utilities and Community Power programs—to supply an increasing portion of their electricity from renewable sources.

This requirement is met through the acquisition of Renewable Energy Certificates (RECs), which represent the environmental attributes of renewable power generation.

What Are Renewable Energy Certificates (RECs)?

One REC equals the renewable energy attributes of one megawatt-hour of electricity, or an equivalent amount of thermal energy.

• RECs are created by certified renewable facilities delivering energy into the New England wholesale electricity market (ISO-NE), which includes New England, New York, and eastern Canada.

• These certificates are tracked by the New England Power Pool Generation Information System (NEPOOL GIS).

• RECs are generally used in the year the renewable energy is generated, but can be “banked” for up to two years to meet up to 30% of future compliance obligations.

Classes of Renewable Energy Under the New Hampshire Renewable Portfolio Standard

The RPS defines four distinct classes of renewable resources, based on technology type and when the generation facility came online:

Class I – New Renewable Energy

• Non-thermal sources (after Jan 1, 2006): wind, solar, small hydro, methane, biomass, hydrogen (from methane or biomass), ocean energy, biodiesel (if produced in NH).

• Thermal sources (after Jan 1, 2013): geothermal, solar thermal, biomass, methane.

Class II – Solar

• Solar generation that began operation after Jan 1, 2006.

Class III – Legacy Biomass & Methane

• Biomass and methane systems that were operational before Jan 1, 2006.

Class IV – Legacy Small Hydro

• Small hydroelectric facilities in operation before Jan 1, 2006.

Meeting RPS Obligations: Flexibility & Alternatives

The RPS allows flexibility in meeting Class I obligations:

• Class I non-thermal can be fulfilled using Class I thermal biomass or methane resources.

• Upgraded or restored Class III and IV resources can also count toward Class I.

• Solar installations that began after January 1, 2006, can be used to fulfill either Class I or Class II obligations.

Annual Compliance: Increasing Over Time

Electricity providers and Community Power programs must meet increasing annual REC procurement targets for each class. These targets grow each year through 2025 and could be adjusted in the future if the state raises its RPS requirements.

Stacked bar chart visualizing Renewable Portfolio Standard (RPS) requirements in New Hampshire from 2020 to 2025. Each bar represents the total RPS requirement and is segmented by Class I (Non-Thermal), Class I (Thermal), Class II (Solar), Class III (Biomass & Methane), and Class IV (Small Hydro). The chart illustrates a steady increase in total RPS obligations over time.

Table showing Renewable Portfolio Standard (RPS) compliance percentages from 2020 to 2025 for each class: Class I Non-Thermal, Class I Thermal, Class II (Solar), Class III (Biomass & Methane), and Class IV (Small Hydro). The total RPS requirement increases from 20.7% in 2020 to 25.2% from 2025 onward.

The Role of Net Metering in REC Accounting

Net-metered customers (such as those with rooftop solar) can register with NEPOOL to track and sell RECs. However, not all do. To account for this, the Public Utilities Commission (PUC) estimates the REC production of these systems and reduces the procurement obligations of utilities accordingly.

What Happens If Providers Don’t Meet Their RPS Targets?

If electricity providers fall short of their RPS obligations, they must make Alternative Compliance Payments (ACPs) instead of acquiring RECs.

• These payments support various renewable energy initiatives in New Hampshire.

• ACPs effectively act as a price ceiling for RECs in the market.

• Recent examples include Eversource, Unitil, and the NH Electric Cooperative making ACPs rather than purchasing specific REC types.

Table displaying inflation-adjusted Alternative Compliance Payment (ACP) rates in dollars per megawatt hour from 2017 to 2021. Rates are shown for Class I (Non-Thermal), Class I Thermal, Class II (Solar), Class III (Biomass & Methane), and Class IV (Small Hydro). Rates generally increase slightly each year, with Class I and II reaching $57.99 in 2021.

Table showing 2019 Alternative Compliance Payments (ACPs) made by New Hampshire utilities, broken down by REC class. New Hampshire Electric Cooperative paid $187,192 for Class I Thermal. Eversource Energy paid $519,893 for Class I Thermal. Unitil Energy Systems paid $1,029 for Class II. Total ACPs for all distribution utilities amounted to $708,114.

Want to Learn More?

Explore these resources for deeper insight into New Hampshire’s RPS:

• RSA 362-F – NH RPS Statute

• NH Public Utilities Commission RPS Page

• NH Renewable Energy Fund Annual Report (2020)