New Hampshire businesses face some of the highest energy costs in the nation, threatening economic growth, job creation, and competitiveness. Over the past decade, electricity prices in our state have risen 60%, compared to a national increase of 26%. This places New Hampshire among the ten most expensive states for electricity, alongside California and Hawaii. High energy costs are a burden for businesses, particularly manufacturers and industrial users, limiting their ability to expand, invest, and hire.

Manufacturers, which account for a significant portion of New Hampshire’s economic output, are particularly sensitive to energy costs. High electricity prices can make or break expansion decisions, influence hiring, and ultimately determine whether a business remains in New Hampshire or relocates to a more cost-effective region.

Recognizing the need for practical solutions to reduce energy costs and improve reliability, the Business & Industry Association, New Hampshire’s statewide chamber of commerce and state affiliate of the National Association of Manufacturers, considers Senate Bill 106 one of its top legislative priorities for 2025 and a meaningful step forward in addressing energy costs for manufacturers and large energy users.

Senate Bill 106 increases the cap for solar installations on an industrial or commercial facility from 1 megawatt to 5 megawatts. This expansion allows the manufacturing, commercial, and industrial facilities most challenged by high energy costs to invest in self-generation. By providing these businesses with the flexibility to invest in renewable energy projects at scale, they can stabilize and reduce their energy expenses. This helps ensure NH remains an economically competitive home for manufacturing at a time when the state has outpaced the national average of advanced industry job growth over the past five years.

SB 106 also brings much needed certainty to NH’s net metering program by extending its lifespan to industry standards and extending past the current end date of 2040. Businesses investing in self-generation are here for the long-haul and deserve long-term certainty and stability in net metering policy. The hallmark of any health business climate is policy and regulatory stability, and SB 106 is an important step forward in delivering just that.

For years the knock on net metering, a term for the billing mechanism that credits customers for electricity they generate, has been contentions around the potential risk of “cost-shifting” between customers. The 2022 the “Value of Distributed Energy Resources” (VDER) study, commissioned by the NH Public Utilities Commission, confirmed the significant benefits of net metering. The study demonstrated that distributed energy generation reduces strain on the grid, enhances reliability, and lowers wholesale energy prices, all of which benefit ratepayers across the board. Coupled with the pressing need for businesses to control their energy expenses, the pragmatic and incremental expansion of net metering proposed by SB 106 is a valuable tool in maintaining our state’s economic competitiveness.

The economic benefits of expanded net metering for manufacturers and industrial users are clear. By allowing large-scale self-generation, SB 106 gives businesses greater control over their energy costs, enabling them to plan for the future with more financial predictability. Businesses that generate their own power can hedge against volatile electricity prices, ensuring that energy expenses do not erode their bottom line. Additionally, local energy production means that more dollars stay within New Hampshire, strengthening our economy and fostering job growth.

SB 106 is by no means a silver bullet, but it is a necessary step in the right direction. The BIA believes New Hampshire must take an all-of-the-above approach to energy policy—one that leverages every available tool and technology to lower costs and ensure reliability. The status quo is unsustainable. In visiting manufacturers across the state, I continue to hear deep frustration and concern over continually increasing energy prices and the lack of any meaningful progress in state policy to address it.

SB 106, which enjoyed unanimous bi-partisan support in the NH Senate, now heads to the House of Representatives for consideration. The BIA urges House members to recognize the urgency of this issue and support SB 106. New Hampshire’s manufacturing and industrial sectors desperately need solutions to make energy costs more affordable and predictable. Our businesses—and our state’s long-term economic competitiveness—depend on it.

Michael Skelton is president and CEO of the Business & Industry Association. Visit BIAofNH.com.