Summary of New Mexico solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to New Mexico homeowners
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See what New Mexico solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or New Mexico solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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.
Net energy metering in New Mexico
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.
New Mexico solar rebates
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.
PNM solar payments
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 state tax credit
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.
Property tax exemption
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.
Cost of solar panels in your part of New Mexico after all applicable solar incentives
Showing data for:
Prices based on a 7.9kW system, after 26% federal tax credit
Solar prices near you
Payback period
5-6.1 years
Net profit (savings less system cost)
$53,432-$65,306
Average size system installed in NM in 2021
7.9kW
Solar panel cost calculator
Best 10 solar companies in New Mexico
31 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 280 Reviews
Latest review
Adam G., over 1 month
They were detailed, communicative, organized and prompt. Whole process was explained in great detail and all of the milestones were hit right on time. When minor issues arose they were addressed immediately and throughly. Highly recommend these guys (especially because we have neighbors that have used other companies, and there experience was awful.) They were jealous of how easy our installation was.
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Latest review
Adam G., over 1 month
They were detailed, communicative, organized and prompt. Whole process was explained in great detail and all of the milestones were hit right on time. When minor issues arose they were addressed immediately and throughly. Highly recommend these guys (especially because we have neighbors that have used other companies, and there experience was awful.) They were jealous of how easy our installation was.
4.81 55 Reviews
Latest review
Rick and Sylvia B, over 1 month
We did a lot of research in figuring out if we wanted to go solar and then finding a company to go with. We initially signed up with a company through Costco but got cold feet when digging into the company that they use to provide and install solar, that company is also based in another state. We had Steve from Solar Pro come over to our house and show us what they offer and it ended up being lower cost, better financing plus other perks than the Costco option AND Poulin Solar Pro is local (great for any follow-up/issues), which gave us a bit more comfort. We ended up going with at 33 panel LG panel, 10KW system (which arguably is one of the best panels). Ron and his install team were great….were very careful and professional during the install, cleaned up after themselves and even ensured the color of the conduit matched our stucco. They took care of all the permitting and inspections required. We also received everything that was promised by Steve during his initial consultation (he even added an additional rebate that come out after we started the process). My plumber had gone with the company that we initially were going with (through Costco) and he said they made a lot of promises that they did not keep. We did not experience this with Poulin Solar Pro. We did experience some concerns with some shading on some of our solar panels and Steve and Ron came through with a great solution. I’m not sure if you would get this type of service with an out of state company.
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Latest review
Rick and Sylvia B, over 1 month
We did a lot of research in figuring out if we wanted to go solar and then finding a company to go with. We initially signed up with a company through Costco but got cold feet when digging into the company that they use to provide and install solar, that company is also based in another state. We had Steve from Solar Pro come over to our house and show us what they offer and it ended up being lower cost, better financing plus other perks than the Costco option AND Poulin Solar Pro is local (great for any follow-up/issues), which gave us a bit more comfort. We ended up going with at 33 panel LG panel, 10KW system (which arguably is one of the best panels). Ron and his install team were great….were very careful and professional during the install, cleaned up after themselves and even ensured the color of the conduit matched our stucco. They took care of all the permitting and inspections required. We also received everything that was promised by Steve during his initial consultation (he even added an additional rebate that come out after we started the process). My plumber had gone with the company that we initially were going with (through Costco) and he said they made a lot of promises that they did not keep. We did not experience this with Poulin Solar Pro. We did experience some concerns with some shading on some of our solar panels and Steve and Ron came through with a great solution. I’m not sure if you would get this type of service with an out of state company.
4.80 166 Reviews
Latest review
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!
Read more
Average cost (5kW system)
$22,500 ($4.50 per watt)
Latest review
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!
4.76 76 Reviews
Latest review
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.
Read more
Latest review
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.
4.67 25 Reviews
Latest review
JAKE WEISENBERGER, 1 week ago
Organ Mountain Solar was absolutely great to work with. The crew who installed the solar system finished everything in one day and worked like a well-oiled machine. Donald was particularly knowledgeable, helpful, and incredibly professional as well as everyone at the office. We appreciate the ease in the process and strongly recommend Organ Mountain Solar to anyone interested in installing solar.
Read more
Latest review
JAKE WEISENBERGER, 1 week ago
Organ Mountain Solar was absolutely great to work with. The crew who installed the solar system finished everything in one day and worked like a well-oiled machine. Donald was particularly knowledgeable, helpful, and incredibly professional as well as everyone at the office. We appreciate the ease in the process and strongly recommend Organ Mountain Solar to anyone interested in installing solar.
4.63 79 Reviews
Latest review
James from TN, over 1 month
I reached out for a quote from Affordable Solar. Once Anna called me for a consultation, she explained that i was outside their service area. However, she still took the time to do some research and send me information on the type of equipment that i was looking. It's not everyday that a company will go out of their way for someone who is not a customer. I would definitely use Affordable Solar if i was in their service area
Read more
Average cost (5kW system)
$17,650 ($3.53 per watt)
Latest review
James from TN, over 1 month
I reached out for a quote from Affordable Solar. Once Anna called me for a consultation, she explained that i was outside their service area. However, she still took the time to do some research and send me information on the type of equipment that i was looking. It's not everyday that a company will go out of their way for someone who is not a customer. I would definitely use Affordable Solar if i was in their service area
4.57 33 Reviews
Latest review
Loyd Dobbler, 2 weeks ago
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.
Read more
Average cost (5kW system)
$23,200 ($4.64 per watt)
Latest review
Loyd Dobbler, 2 weeks ago
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 12 Reviews
Latest review
Dave B, over 1 month
If you’re looking to go solar, I highly recommend Sunstate Solar. Knowledgeable, easy to work with and prompt after the sale responses. System design was to offset about 60% of our electric use and performance is exceeding expectations. Last month I was happily surprised with a $12 electric bill. The solar app is easy to use and lets you see exactly how the system is operating. I worked with 4 companies before selecting Sunstate. The installation went smoothly and their work was excellent. They handled all the paperwork with PNM prior to install and helped with the NM rebate process post install. Again, highly recommended.
Read more
Latest review
Dave B, over 1 month
If you’re looking to go solar, I highly recommend Sunstate Solar. Knowledgeable, easy to work with and prompt after the sale responses. System design was to offset about 60% of our electric use and performance is exceeding expectations. Last month I was happily surprised with a $12 electric bill. The solar app is easy to use and lets you see exactly how the system is operating. I worked with 4 companies before selecting Sunstate. The installation went smoothly and their work was excellent. They handled all the paperwork with PNM prior to install and helped with the NM rebate process post install. Again, highly recommended.
4.53 25 Reviews
Latest review
nico, over 1 month
Mr Alan Morgan from solar smart living explained the program to include very good details about what it is by going solar and the benefits not only to safe money but also produce clean energy
Read more
Average cost (5kW system)
$18,750 ($3.75 per watt)
Latest review
nico, over 1 month
Mr Alan Morgan from solar smart living explained the program to include very good details about what it is by going solar and the benefits not only to safe money but also produce clean energy
4.46 15 Reviews
Latest review
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.
Read more
Latest review
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.
Solar guides for your New Mexico city
For more information about going solar near where you live, check out the following resources:
Useful links
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