In recent years, countries around the world have demonstrated that clean energy isn't just good for the planet — it makes sense economically, earning money for investors and saving money for consumers. Some governments have embraced the new technology and its benefits, but some seem to be taking a step backward. 

New Hampshire is one of the latter, as the state has redirected its renewable energy fund, which was poised to deliver clean energy solutions to small towns throughout the state, Canary Media reported.

What's happening?

New Hampshire has historically run on a tight budget without a sales or income tax. It's funded primarily by property taxes, and the citizens tend to resist any increases.

However, the renewable energy fund didn't come from the taxpayers. Instead, it came from electric providers that didn't meet their legal obligation to provide enough renewable energy on their own. They pay into the fund, and the state uses that money to pay for renewable energy projects for communities throughout the state. New Hampshire took in more funds than it paid out, amassing a $15.3 million surplus.

At least, that's how it used to work. This year, the state has raided the fund, redirecting the majority of the money to the general fund and leaving only $1 million per year for programs, which, as of last year, historically cost $5 million per year.

"This is a big step backward for renewable energy in the state. There's going to be very little left over," said Nick Krakoff, senior attorney in the state for the Conservation Law Foundation, per Canary Media. "That means there would be basically nothing left for this municipal program."

Why is the reallocation of funds important?

In 2024, New Hampshire started a pilot project to install solar panels on municipal buildings in small communities. These towns, lacking the budget to invest in these upgrades themselves, stand to reap significant savings by doing so while reducing their pollution. The program was a major success, and many more communities had applied to be part of what was slated to become a permanent program.

Now, it's extremely unlikely New Hampshire will be able to operate that program at all, since the funding is mostly gone.

"No one is telling us the program is dead, but it is possible that it will be impossible to run if there isn't funding for it," said Sarah Brock, director of Clean Energy New Hampshire's Energy Circuit Rider program, per Canary Media.

What's being done about the shortage?

For now, previously approved installations are going ahead as planned. Several small communities are going to reap the benefits of solar panels to power their town halls and fire stations.

The future of the program, however, is uncertain.

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