Federal ITC 26% (tax credit)
State tax credit: Yes ($6,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Prospects for home solar power in New Mexico are brighter than ever, since the state legislature teamed up with Governor Michelle Lujan Grisham to pass a law requiring 100% of all energy generated in the state to come from renewable sources by 2045.
That's an amazing feat! The Land of Enchantment joins just 5 other states in setting the 100% renewable goal. While that target is a few decades away, the standard helps commit the state’s utility companies to source more energy from your home solar panels with stronger solar incentives.
Learn what solar incentives are available to New Mexico homeowners
See what New Mexico solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or New Mexico solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New Mexico
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
New Mexico has lots of sun and strong goals for installing solar, but that doesn't mean much unless there are also strong rules in place to protect solar owners from the shadier side of selling electricity to the utility company. Luckily, New Mexico does a pretty good job with that!
The state's net metering laws are some of the best in the country. The rules make it so you can get 1-to-1 retail electricity rate credits for your extra solar electricity you send back into the grid that you aren’t able to use onsite. The credits are carried forward indefinitely. You also get to retain control of any renewable energy credits your solar system produces. That has a benefit, as you can sell them to PNM as part of their solar performance program outlined below.
While New Mexico does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
An average sized 6-kW solar system will produce about 10,500 kilowatt-hours (kWh) over a year in New Mexico. As part of a PNM program to purchase your renewable energy credits, they’ll pay you $0.0025 per kwh for a term of 8 years.
Unfortunately, that amounts to a mere $300 over the course of 8 years, excluding your $150 application fee. As a result of your participation, PNM gets to say they are meeting their renewable energy goals with your RECs.
We’d like to see the state do a little better here relating to stronger solar performance payments, but hey at least it’s a little something.
In 2020, New Mexico lawmakers passed a statewide solar tax credit, called the “New Solar Market Development Income Tax Credit”. It covers 10% of your installation costs, up to a maximum of $6,000.
Since most average sized 6kW systems cost about $1,8000, you can expect a credit of about $1,800. The credit carries forward for 5 years if you have less tax due annually than this amount.
The legislature has also built tax exemptions into the laws here, saving you money both up-front and every year thereafter for the life of your new solar power system.
New Mexico’s property tax exemption will keep you saving money every year. When you install a solar power system, your home goes up in value by about twenty times your annual electricity bill savings. That adds up to a lot of money in most cases! Normally you’d pay taxes on that increase in value, but thanks to this exemption, your property taxes stay the same.
Showing data for:
Prices based on a 7.9kW system, after 26% federal tax credit
31 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.89 284 Reviews
John of Eldorado, over 1 month
Positive Energy Solar installed a ground solar array on our property four months ago. On installation, everything worked perfectly. The array and associated electrical installations still work perfectly. The support and installation team worked perfectly, even supporting us in getting the requisite permits. They have also performed well in answering follow-up questions. I suspect it helps that they are employee owned. An all-around fine company.
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Average cost (5kW system)
$17,500 ($3.50 per watt)
John of Eldorado, over 1 month
Positive Energy Solar installed a ground solar array on our property four months ago. On installation, everything worked perfectly. The array and associated electrical installations still work perfectly. The support and installation team worked perfectly, even supporting us in getting the requisite permits. They have also performed well in answering follow-up questions. I suspect it helps that they are employee owned. An all-around fine company.
4.80 166 Reviews
Excellent Local Experts, over 1 month
Had my system installed in 2018. We received the best attention and Customer care we didn't receive anywhere else. We researched and contacted many "local" solar companies and nothing compared to the service we received with Sunspot. They are the true best LOCAL company in Las Cruces and surrounding areas. I'm so glad we contacted true experts!
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Average cost (5kW system)
$22,500 ($4.50 per watt)
Excellent Local Experts, over 1 month
Had my system installed in 2018. We received the best attention and Customer care we didn't receive anywhere else. We researched and contacted many "local" solar companies and nothing compared to the service we received with Sunspot. They are the true best LOCAL company in Las Cruces and surrounding areas. I'm so glad we contacted true experts!
4.77 57 Reviews
Boucher, over 1 month
Poulin Solar Pro was very easy to work with, from the first meeting of possibility, design, execution of work and final follow through. We highly recommend them as they made it very easy. You may be able to find a 'slightly' cheaper company but Poulin Solar Pro has the best warranty and gets you running right away once the install is done (the pre-approvals are at the mercy of the city and their time line, not something Poulin Solar has control of. Once the approvals are done they get on a schedule right away, the install is quick and you are up and running in less than two weeks (time is at the mercy of PNM installing the 2nd meter which happened about a week after Electrical and Panel install inspections by the city). We are now enjoying solar power and will see it's benefits right away! Very professional staff and team - a very well run one!!! The install is first rate from solar arrays to all the electrical (which we needed extra due to age of house).
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Average cost (5kW system)
$17,500 ($3.50 per watt)
Boucher, over 1 month
Poulin Solar Pro was very easy to work with, from the first meeting of possibility, design, execution of work and final follow through. We highly recommend them as they made it very easy. You may be able to find a 'slightly' cheaper company but Poulin Solar Pro has the best warranty and gets you running right away once the install is done (the pre-approvals are at the mercy of the city and their time line, not something Poulin Solar has control of. Once the approvals are done they get on a schedule right away, the install is quick and you are up and running in less than two weeks (time is at the mercy of PNM installing the 2nd meter which happened about a week after Electrical and Panel install inspections by the city). We are now enjoying solar power and will see it's benefits right away! Very professional staff and team - a very well run one!!! The install is first rate from solar arrays to all the electrical (which we needed extra due to age of house).
4.76 76 Reviews
Satisfied in Ogden, over 1 month
Synergy Power was helpful from my first inquiry through the install and supported me well after the install. Marshall was patient with all my questions and provided me with all the information I needed. I have a metal shingle roof and they showed me work they had done on other homes. Their install crew was quick and professional and did quality work. Over the past couple of months, whenever I had questions about the performance of the panels, they took the time to answer my questions. They also did the work at a fair price.
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Satisfied in Ogden, over 1 month
Synergy Power was helpful from my first inquiry through the install and supported me well after the install. Marshall was patient with all my questions and provided me with all the information I needed. I have a metal shingle roof and they showed me work they had done on other homes. Their install crew was quick and professional and did quality work. Over the past couple of months, whenever I had questions about the performance of the panels, they took the time to answer my questions. They also did the work at a fair price.
4.65 82 Reviews
Dave Hartenberger, over 1 month
We experienced total product and professional service from Affordable Solar at start to finish and beyond! How can this be? Well, each person was totally available for my questions and concerns by returning my calls and emails in a quick turn around manner every time! Each person, the salesman, home assessor, the clerk who filed the utility agreement with PNM and submitted our permit package, the installers who were respectful of our roof and property, the electrician who was very careful and tidy with each connection and lastly, the very knowledgeable staff person who helped us file the State and Federal tax forms. The salesman and staff person who walked us through all of the steps from start to finish were available BEYOND the call of duty when we had tax filing questions months after being hooked up to the grid! We made our first loan payment on 05-01-2021, and Affordable Solar was just as helpful and responsive to help us in January months after everything was completed!
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Average cost (5kW system)
$17,650 ($3.53 per watt)
Dave Hartenberger, over 1 month
We experienced total product and professional service from Affordable Solar at start to finish and beyond! How can this be? Well, each person was totally available for my questions and concerns by returning my calls and emails in a quick turn around manner every time! Each person, the salesman, home assessor, the clerk who filed the utility agreement with PNM and submitted our permit package, the installers who were respectful of our roof and property, the electrician who was very careful and tidy with each connection and lastly, the very knowledgeable staff person who helped us file the State and Federal tax forms. The salesman and staff person who walked us through all of the steps from start to finish were available BEYOND the call of duty when we had tax filing questions months after being hooked up to the grid! We made our first loan payment on 05-01-2021, and Affordable Solar was just as helpful and responsive to help us in January months after everything was completed!
4.64 27 Reviews
Ray, over 1 month
The entire experience (even warranty) was pleasurable. Troy was honest about tax credits (state and federal), time frame, cost, timing of payments due, and warranty. Troy clearly explained the different ways PNM deals with excess solar (I choose not to sell it back to them). Even the co-owners gave me their cell phone numbers to resolve any problems or questions I had. They got me the New Mexico tax credit certificate, after the job was done, that is required to claim the state solar tax credit. A microinverter went out and they drove the 100+ miles to replace it, once they had part, at no cost to me.
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Ray, over 1 month
The entire experience (even warranty) was pleasurable. Troy was honest about tax credits (state and federal), time frame, cost, timing of payments due, and warranty. Troy clearly explained the different ways PNM deals with excess solar (I choose not to sell it back to them). Even the co-owners gave me their cell phone numbers to resolve any problems or questions I had. They got me the New Mexico tax credit certificate, after the job was done, that is required to claim the state solar tax credit. A microinverter went out and they drove the 100+ miles to replace it, once they had part, at no cost to me.
4.57 33 Reviews
Loyd Dobbler, over 1 month
I built my own house, and I am very particular about jobs that I contract with other people. I've known Greg for a long time, and he was the only person I trusted with my PV system. My main gig is home inspection, and I've seen a lot of installs that were "okay" but not the way I would have wanted it. Greg did it the way I wanted it. I didn't bother getting any other quotes because I would not have trusted them with my project. The products are all top rated, and LG is made in the USA.
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Average cost (5kW system)
$23,200 ($4.64 per watt)
Loyd Dobbler, over 1 month
I built my own house, and I am very particular about jobs that I contract with other people. I've known Greg for a long time, and he was the only person I trusted with my PV system. My main gig is home inspection, and I've seen a lot of installs that were "okay" but not the way I would have wanted it. Greg did it the way I wanted it. I didn't bother getting any other quotes because I would not have trusted them with my project. The products are all top rated, and LG is made in the USA.
4.56 15 Reviews
Cynthia Geoghegan, over 1 month
Purchasing solar panels from SunState was unexpectedly easy and uncomplicated. They have figured out the process and the pitfalls (including financing) from start to finish. There were no frustrations or disappointments. The customer service was excellent. We highly recommend them.
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Cynthia Geoghegan, over 1 month
Purchasing solar panels from SunState was unexpectedly easy and uncomplicated. They have figured out the process and the pitfalls (including financing) from start to finish. There were no frustrations or disappointments. The customer service was excellent. We highly recommend them.
4.46 15 Reviews
Anonymous, over 1 month
We got a 10.2 KWh system installed. I got 2-3 quotes from 5 different companies, including Sun Power and Affordable solar. I am an Electrical Engineer, so I was not easy to work with and I did a TON of research comparing the different companies and technologies. Mark (the CEO) was very patient and gave me a all research and data that I asked and then some. He went above and beyond to get our business. The inverts they use are definitely superior to the micro inverters used by the other companies I got quotes from. <br /><br />All of the other companies I got quotes from seemed to have a less than honest approach to their sells pitch, starting out at extremely high prices then coming down a lot on their second and third quotes. Not the case with Solluna. A fair, honest quote the first time and very little reduction in the overall price after much MUCH negotiating.<br /><br />Solluna solar's quote was about %20 below the other companies. For that savings I can probably replace all of the solar panels on my roof (myself) in 25 years and still be below the price of the other companies. If you are considering solar panels and you are lucky enough to live near this company then I will tell you what I have told my friends and family, call Solluna Solar.
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Anonymous, over 1 month
We got a 10.2 KWh system installed. I got 2-3 quotes from 5 different companies, including Sun Power and Affordable solar. I am an Electrical Engineer, so I was not easy to work with and I did a TON of research comparing the different companies and technologies. Mark (the CEO) was very patient and gave me a all research and data that I asked and then some. He went above and beyond to get our business. The inverts they use are definitely superior to the micro inverters used by the other companies I got quotes from. <br /><br />All of the other companies I got quotes from seemed to have a less than honest approach to their sells pitch, starting out at extremely high prices then coming down a lot on their second and third quotes. Not the case with Solluna. A fair, honest quote the first time and very little reduction in the overall price after much MUCH negotiating.<br /><br />Solluna solar's quote was about %20 below the other companies. For that savings I can probably replace all of the solar panels on my roof (myself) in 25 years and still be below the price of the other companies. If you are considering solar panels and you are lucky enough to live near this company then I will tell you what I have told my friends and family, call Solluna Solar.
4.46 26 Reviews
Robert McGonigle, over 1 month
Solar Smart Installed my System in April of 2016. The installation went great. The service afterwards and continues to be exceptional. It’s nice not getting an electric bill.
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Average cost (5kW system)
$18,750 ($3.75 per watt)
Robert McGonigle, over 1 month
Solar Smart Installed my System in April of 2016. The installation went great. The service afterwards and continues to be exceptional. It’s nice not getting an electric bill.
For more information about going solar near where you live, check out the following resources: