Federal ITC 30% (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
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
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, it does have a statewide solar tax credit, and some utilities offer solar programs homeowners can use.
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.
New Mexico homeowners can use the 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 6 kW systems cost about $18,000, you can expect a credit of about $1,800. The credit carries forward for five years if you owe less than the tax credit value.
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 30% federal tax credit
39 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 287 Reviews
Sven, over 1 month
I live in a condo unit in a 1950s neighborhood in Santa Fe, NM. The electrical service in the neighborhood and the condo is not to the newest standard, plus there was only limited exterior wall space for installing the various electrical components needed. In summary, designing and installing the system was a challenge. Prior to Positive Energy Solar, I had contacted two other local solar installation firms, who were interested in the project, but ultimately lacked the knowledge, resources, and/or dedication to come up with a design. I had given up hope that it could be done, until someone shared their positive experience with Maria Hondros, a Sales Advisor at Positive Energy Solar, who exceeded all my expectations. She was extremely knowledgeable, dedicated and well connected to come up with a design that took all the constraints into consideration. At one point the design was about to be determined as not feasible due to some technical calculations. She took it upon herself to review the calculations and detected an error in the spreadsheet that was used by others in the calculation. The project manager and installation crew were also a joy to work with. In summary, I can highly recommend the entire team at Positive Energy Solar, and in particular the Sales Advisor Maria Hondros. Without her knowledge and dedication, I don’t believe I would have been able to get solar panels installed.
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Average cost (5kW system)
$17,500 ($3.50 per watt)
Sven, over 1 month
I live in a condo unit in a 1950s neighborhood in Santa Fe, NM. The electrical service in the neighborhood and the condo is not to the newest standard, plus there was only limited exterior wall space for installing the various electrical components needed. In summary, designing and installing the system was a challenge. Prior to Positive Energy Solar, I had contacted two other local solar installation firms, who were interested in the project, but ultimately lacked the knowledge, resources, and/or dedication to come up with a design. I had given up hope that it could be done, until someone shared their positive experience with Maria Hondros, a Sales Advisor at Positive Energy Solar, who exceeded all my expectations. She was extremely knowledgeable, dedicated and well connected to come up with a design that took all the constraints into consideration. At one point the design was about to be determined as not feasible due to some technical calculations. She took it upon herself to review the calculations and detected an error in the spreadsheet that was used by others in the calculation. The project manager and installation crew were also a joy to work with. In summary, I can highly recommend the entire team at Positive Energy Solar, and in particular the Sales Advisor Maria Hondros. Without her knowledge and dedication, I don’t believe I would have been able to get solar panels installed.
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!
4.64 84 Reviews
Mike F., over 1 month
I've had my system installed for two years now without need of any repairs, so far. My electrical bill has gone from an average of $100 per month to $8 per month, with my building a surplus of Kw hours each month. The installation process was as smooth and easy for a customer as one could hope for, with ASI handling all the applications and permitting necessary for the install. My personal experiences with Crystal(Sales), Annie(Project Mgr.), and Travis(Service Mgr.) from ASI were very professional and above reproach. I can't say enough good things about these 3 employees of their company. I would highly recommend Affordable Solar to anyone for their renewable energy needs!
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Average cost (5kW system)
$17,650 ($3.53 per watt)
Mike F., over 1 month
I've had my system installed for two years now without need of any repairs, so far. My electrical bill has gone from an average of $100 per month to $8 per month, with my building a surplus of Kw hours each month. The installation process was as smooth and easy for a customer as one could hope for, with ASI handling all the applications and permitting necessary for the install. My personal experiences with Crystal(Sales), Annie(Project Mgr.), and Travis(Service Mgr.) from ASI were very professional and above reproach. I can't say enough good things about these 3 employees of their company. I would highly recommend Affordable Solar to anyone for their renewable energy needs!
4.64 35 Reviews
Laura H, over 1 month
I hired Organ Mountain Solar & Electric to expand an existing system of 4 panels previously installed by Positive Energy in 2014. Since I had experienced no problem with the photovoltaic panels in the years since 2014, & Organ Mtn. was designated to continue my original 25 yr warranty by Positive Energy when they moved to Albuquerque, I chose this company due to reputation for integrity & competence. Organ Mtn. updated inverters on my older panels, updated electrical requirements, & installed another 12 panels, combining both systems effectively. Their staff was exceptionally reliable to contact for any questions; explained & graphed where panels would be installed & exactly what to expect from them; explained each step of installation clearly; & processed all paperwork for El Paso Electric approval, inspections, & state tax credits in a timely manner. Due to being in demand, they were backed up for quite a while, but were worth the wait, & once able to start, finished my project quickly. Since panels were operational effective June 1, my electric bill has only balanced out to credits, & I am confident my new 25 yr warranties will be honored. I recommend this company to anyone considering investing in a photovoltaic system.
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Laura H, over 1 month
I hired Organ Mountain Solar & Electric to expand an existing system of 4 panels previously installed by Positive Energy in 2014. Since I had experienced no problem with the photovoltaic panels in the years since 2014, & Organ Mtn. was designated to continue my original 25 yr warranty by Positive Energy when they moved to Albuquerque, I chose this company due to reputation for integrity & competence. Organ Mtn. updated inverters on my older panels, updated electrical requirements, & installed another 12 panels, combining both systems effectively. Their staff was exceptionally reliable to contact for any questions; explained & graphed where panels would be installed & exactly what to expect from them; explained each step of installation clearly; & processed all paperwork for El Paso Electric approval, inspections, & state tax credits in a timely manner. Due to being in demand, they were backed up for quite a while, but were worth the wait, & once able to start, finished my project quickly. Since panels were operational effective June 1, my electric bill has only balanced out to credits, & I am confident my new 25 yr warranties will be honored. I recommend this company to anyone considering investing in a photovoltaic system.
4.64 65 Reviews
Keoma, over 1 month
I contracted this company because of their high reviews but after completing a project with them, I'm not sure how they got those reviews. After talking to some other companies first, I decided to use SolarPro for my project. We signed a contract that included electric panel upgrade and the project was slated to complete in four months. The first two months, I barely received any communications from them. When I sent them emails asking about status, it would take a week or even sometimes they don't respond. The only bright spot is Kara in customer service, when you bypass everyone else and contact her, she was very helpful. After two months and the paper work started moving, I got a notice that my panel upgrade will cost an additional $1500 even though we had it in the contract. I tried contacting the Paulin brothers who are the owners and they did not even make a courtesy reply, nothing different than other times trying to contact the project manager. I was then told that I either pay the extra fee or the project would not continue. It was a tough choice to stay with them but since we already wasted 2 months, I didn't want to restart the process all over with another company. The project continued to move slow which I understand is due to applications with PNM and the city so they don't have much control. Once install happened, that was quick and professional with no issues. The project was finished 6 month after start instead of the original 4 months promised. Part of the rebate process with the NM state, SolarPro had to send me forms to complete. It took them 2 months from end of my project to send me the forms. By the time they did and I turned that into the state, the state ran out of money for 2022 projects which I was never told it was a possibility otherwise I would have pushed the completion into 2023. It seemed something very basic they should know. So on top of the $1500 additional for the panel, I was out 10% of the project cost since NM rebates were not possible. So if you ever decide to use these guys, and I wouldn't understand why, make sure you start your project really early or really late in the year otherwise you can count on not getting NM rebates. Overall, I'm happy with my system and I would get it again but there's no way I would use these guys or recommend them to anyone.
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Average cost (5kW system)
$17,500 ($3.50 per watt)
Keoma, over 1 month
I contracted this company because of their high reviews but after completing a project with them, I'm not sure how they got those reviews. After talking to some other companies first, I decided to use SolarPro for my project. We signed a contract that included electric panel upgrade and the project was slated to complete in four months. The first two months, I barely received any communications from them. When I sent them emails asking about status, it would take a week or even sometimes they don't respond. The only bright spot is Kara in customer service, when you bypass everyone else and contact her, she was very helpful. After two months and the paper work started moving, I got a notice that my panel upgrade will cost an additional $1500 even though we had it in the contract. I tried contacting the Paulin brothers who are the owners and they did not even make a courtesy reply, nothing different than other times trying to contact the project manager. I was then told that I either pay the extra fee or the project would not continue. It was a tough choice to stay with them but since we already wasted 2 months, I didn't want to restart the process all over with another company. The project continued to move slow which I understand is due to applications with PNM and the city so they don't have much control. Once install happened, that was quick and professional with no issues. The project was finished 6 month after start instead of the original 4 months promised. Part of the rebate process with the NM state, SolarPro had to send me forms to complete. It took them 2 months from end of my project to send me the forms. By the time they did and I turned that into the state, the state ran out of money for 2022 projects which I was never told it was a possibility otherwise I would have pushed the completion into 2023. It seemed something very basic they should know. So on top of the $1500 additional for the panel, I was out 10% of the project cost since NM rebates were not possible. So if you ever decide to use these guys, and I wouldn't understand why, make sure you start your project really early or really late in the year otherwise you can count on not getting NM rebates. Overall, I'm happy with my system and I would get it again but there's no way I would use these guys or recommend them to anyone.
4.60 78 Reviews
K. Riordan, over 1 month
We had our panels installed in February of 2022. Our inverter has been out for months now and our sells rep. Chris kept insuring us that someone would be out to fix the problem. Now they never return our calls or answer our calls. No one at the company will give me a name or number of someone else to talk to and state we have to go through Chris. We now not only have a high electrical bill, but a bill for Solar panels that are useless. If you are thinking about getting solar panels, I would do a lot of research prior to deciding on this company and even if solar panels are worth it in the end.
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K. Riordan, over 1 month
We had our panels installed in February of 2022. Our inverter has been out for months now and our sells rep. Chris kept insuring us that someone would be out to fix the problem. Now they never return our calls or answer our calls. No one at the company will give me a name or number of someone else to talk to and state we have to go through Chris. We now not only have a high electrical bill, but a bill for Solar panels that are useless. If you are thinking about getting solar panels, I would do a lot of research prior to deciding on this company and even if solar panels are worth it in the end.
4.49 29 Reviews
Cox, over 1 month
So glad we went with Solar Smart Living, LLC for our solar panels! They did a great job and even cleaned up well afterward. Our consultant, Bree Halcyon, was so knowledgeable and easy to work with! She had all the answers. We also had them come back later to install Critter Guards on the solar panels. This was a quick, clean job by the gentlemen who did the work. They even helped us set up our PC, laptop, and one phone to track the energy use from the solar panels.
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Average cost (5kW system)
$18,750 ($3.75 per watt)
Cox, over 1 month
So glad we went with Solar Smart Living, LLC for our solar panels! They did a great job and even cleaned up well afterward. Our consultant, Bree Halcyon, was so knowledgeable and easy to work with! She had all the answers. We also had them come back later to install Critter Guards on the solar panels. This was a quick, clean job by the gentlemen who did the work. They even helped us set up our PC, laptop, and one phone to track the energy use from the solar panels.
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.
4.42 8 Reviews
Christopher Dial, over 1 month
Sun Fire Solar troubleshot my inverter, coordinated with solar edge and ordered parts, and then replaced my inverter. Huge impact because they got my system back up when others were not willing to help. Marco and his team are awesome people and reliable and honest. 100% recommend!
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Christopher Dial, over 1 month
Sun Fire Solar troubleshot my inverter, coordinated with solar edge and ordered parts, and then replaced my inverter. Huge impact because they got my system back up when others were not willing to help. Marco and his team are awesome people and reliable and honest. 100% recommend!
4.35 34 Reviews
Horrible customer service , over 1 month
Don't know much about the company but the salesman was completely disrespectful and that speaks enough about the company. He came very close bodily harm when he chose to ignore me when I expressed my lack of interest, did not leave when I told him to, walked through every yard and not the sidewalk, ignored the numerous No Soliciting signs, and continued to run his mouth about me to my neighbors. For everyone's safety, please no not ever return to my neighborhood.
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Average cost (5kW system)
$23,200 ($4.64 per watt)
Horrible customer service , over 1 month
Don't know much about the company but the salesman was completely disrespectful and that speaks enough about the company. He came very close bodily harm when he chose to ignore me when I expressed my lack of interest, did not leave when I told him to, walked through every yard and not the sidewalk, ignored the numerous No Soliciting signs, and continued to run his mouth about me to my neighbors. For everyone's safety, please no not ever return to my neighborhood.
For more information about going solar near where you live, check out the following resources: