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 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% at the end of 2032.
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 30% federal tax credit
33 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.89 285 Reviews
Linda Nonno, over 1 month
I have nothing but wonderful things to say about this company. All of their employees are friendly, courteous, extremely knowledgeable, and very easy to work with. They did all the work in getting me through the extremely tedious process of permitting and inspections. The Sales and Project Managers were extremely helpful and answered all of my questions promptly. I highly recommend them.
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Average cost (5kW system)
$17,500 ($3.50 per watt)
Linda Nonno, over 1 month
I have nothing but wonderful things to say about this company. All of their employees are friendly, courteous, extremely knowledgeable, and very easy to work with. They did all the work in getting me through the extremely tedious process of permitting and inspections. The Sales and Project Managers were extremely helpful and answered all of my questions promptly. I highly recommend them.
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!
4.78 62 Reviews
nmsolar1212, 1 week ago
Everything was smooth and painless with Poulin. The salesman Dave was informative and answered all our questions, and he was not pushy. They took care of all the permits and paperwork with the utility company, and the physical installation only took one day.
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Average cost (5kW system)
$17,500 ($3.50 per watt)
nmsolar1212, 1 week ago
Everything was smooth and painless with Poulin. The salesman Dave was informative and answered all our questions, and he was not pushy. They took care of all the permits and paperwork with the utility company, and the physical installation only took one day.
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!
4.63 29 Reviews
SolarBadger, over 1 month
OMSC has done an excellent job from first contact to system turn on. They were very helpful without being pushy during system design and negotiation, even making a deal for my system. The installation was quick, professional and ahead of schedule. They have been super helpful and communicative. throughout the process. When I priced systems they cost a bit more than the competitors and its been worth every cent.
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SolarBadger, over 1 month
OMSC has done an excellent job from first contact to system turn on. They were very helpful without being pushy during system design and negotiation, even making a deal for my system. The installation was quick, professional and ahead of schedule. They have been super helpful and communicative. throughout the process. When I priced systems they cost a bit more than the competitors and its been worth every cent.
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.
4.35 34 Reviews
Horrible customer service , 2 weeks ago
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 , 2 weeks ago
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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