Adding solar panels and switching rate plans can lower your Public Service Company of New Mexico (PNM) electric bill
Updated: October 22, 2020Installing solar panels can help reduce your PNM bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Public Service Company of New Mexico (PNM) customers?
Yes. With a 10% state solar tax credit, available property tax exemption, and strong net metering framework, home solar panels make a lot of sense for Public Service Company of New Mexico customers. PNM’s net metering rate also allows you to get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate as retail rates, and roll over to your next monthly bill.
Does Public Service Company of New Mexico (PNM) offer net metering credits for exported solar power?
Yes, Public Service Company of New Mexico (PNM) offers net metering credits.
Under the Public Service Company of New Mexico (PNM) net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to PNM customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a PNM customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$4,213 |
|
New Solar Market Development Income Tax Credit
(State)
10% of purchase and installation costs of solar panel system. Cannot exceed $6,000 per taxpayer per year. |
-$1,560 |
|
Net Metering
(State)
utilities have two options for compensation: Net excess generation can be compensated at the avoided cost rate or by applying kWh credits to a customers utility bill. |
Varies |
|
Property Tax Exemption for Solar Systems
(State)
Solar systems not treated as physical improvements for property tax assessment and will not increase property tax value. |
Varies |
|
PNM - Performance-Based Solar Program
(Utility)
$0.0025 per kWh in exchange for RECs |
Varies |
| TOTAL | -$5,774 |
*Based on 6.99 kW system, average installation cost $15,604
How much does installing solar panels save the average Public Service Company of New Mexico (PNM) residential customer?
If you input the details for a PNM customer with a power bill of $170 per month into the best online solar panels calculator, it tells you that you need a 6.99 kW solar system that will produce 12,404 kWh per year and that this system will return the owner a $50,594 profit after repaying the cost of the system.
The solar savings possible for you as a PNM customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical PNM customer with a $170 per month electric bill prior to solar and who installs a 6.99 kW solar system.
How much do residential solar panels cost for PNM customers?
Showing data for:
Prices based on a 7.8kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$52,268-$63,883
Payback period
5-6.1 years
Recommended size for the selected utility bill
7.8kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 6.99 kW |
|
Annual Power Generation 12,404 kWh |
|
Pay-back time (assuming Cash purchase) 4.9 Years |
|
Internal Rate of Return (IRR) on Investment 17.1% |
|
Gross cost $15,604 |
|
Total Upfront Incentives and Rebates -$5,617 |
|
Net Cost of System after rebates and incentives $9,985 |
|
Total Cost of Utility Power Avoided over 25 years $57,602 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Public Service Company of New Mexico (PNM) customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Public Service Company of New Mexico (PNM) customer installing a 6.99 kW solar system on their property:
A solar system generating 12,404 kWh per year will save you money AND make the world a nicer place
Saves you
$2,024
on average per year
Reduces CO2 emissions
6.14
tons per year
Equivalent to planting
43 trees
per year
Equivalent to driving
13,583 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Public Service Company of New Mexico (PNM) customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.23 per watt or $9,985 for a standard 6.99 kW solar system after the customer claims the 30% federal solar tax credit.