Summary of New Mexico solar incentives 2020
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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-to1 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 6kW 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 2020
7.9kW
Solar panel cost calculator
Best 10 solar companies in New Mexico
24 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 277 Reviews
Latest review
C. C. Wood, over 1 month
We have been extremely happy with Positive Energy Solar and its work over the entire duration of the project. From our first exploratory meetings through PNM’s final meter set and inspection, the entire PES team was technically sound, focussed and efficient, and always willing to interact with us about any question. And all that within the constraints imposed by Covid-19. Working with PES has been a uniformly excellent experience.
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Latest review
C. C. Wood, over 1 month
We have been extremely happy with Positive Energy Solar and its work over the entire duration of the project. From our first exploratory meetings through PNM’s final meter set and inspection, the entire PES team was technically sound, focussed and efficient, and always willing to interact with us about any question. And all that within the constraints imposed by Covid-19. Working with PES has been a uniformly excellent experience.
4.77 47 Reviews
Latest review
Pickygal, 6 days ago
Mario was great to get us informed on all aspects, including financing options and equipment specs and the install team led by Ron was terrific. We were kept informed every step of the way. We highly recommend this company for your solar needs!!
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Latest review
Pickygal, 6 days ago
Mario was great to get us informed on all aspects, including financing options and equipment specs and the install team led by Ron was terrific. We were kept informed every step of the way. We highly recommend this company for your solar needs!!
4.62 77 Reviews
Latest review
Andrew, 2 weeks ago
Great installer, great communication. No complaints.
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Average cost (5kW system)
$17,650 ($3.53 per watt)
Latest review
Andrew, 2 weeks ago
Great installer, great communication. No complaints.
4.61 18 Reviews
Latest review
Denmark B., over 1 month
We researched installers and solar panels on the internet and asked for quotes from five. Organ Mountain Solar & Electric was neither the cheapest nor the most expensive. They were flexible and provided several quotes with different high quality panel vendors and panel configurations. There was no sales pressure and they answered all of our questions. They got excellent reviews including a word-of-mouth recommendation from our neighbor. They have a well defined and documented process and did all the communicating with the county inspectors and El Paso Electric. They were able to schedule our installation a month after the contract signing and it happened exactly on schedule on the two hottest days of summer. Their work was neat and they cleaned up and removed all of the packaging. They warned that the county inspectors were behind (partly due to COVID-19) and apologized. But after several weeks a county inspector passed our system, El Paso Electric replaced our meter with a two-way meter (to enable net metering), and our system came online. It is performing better than the estimates and we could not be happier. Organ Mountain Solar & Electric provided us copies of and guidance on state and federal income tax credit forms. Corey, Aaron, Alex, Troy, Scott and the whole team are friendly, experienced, local professionals. We recommend them for your southern New Mexico solar project.
Read more
Latest review
Denmark B., over 1 month
We researched installers and solar panels on the internet and asked for quotes from five. Organ Mountain Solar & Electric was neither the cheapest nor the most expensive. They were flexible and provided several quotes with different high quality panel vendors and panel configurations. There was no sales pressure and they answered all of our questions. They got excellent reviews including a word-of-mouth recommendation from our neighbor. They have a well defined and documented process and did all the communicating with the county inspectors and El Paso Electric. They were able to schedule our installation a month after the contract signing and it happened exactly on schedule on the two hottest days of summer. Their work was neat and they cleaned up and removed all of the packaging. They warned that the county inspectors were behind (partly due to COVID-19) and apologized. But after several weeks a county inspector passed our system, El Paso Electric replaced our meter with a two-way meter (to enable net metering), and our system came online. It is performing better than the estimates and we could not be happier. Organ Mountain Solar & Electric provided us copies of and guidance on state and federal income tax credit forms. Corey, Aaron, Alex, Troy, Scott and the whole team are friendly, experienced, local professionals. We recommend them for your southern New Mexico solar project.
4.53 129 Reviews
Latest review
Les Peterson, 1 week ago
Sunpro Solar was my choice because of their warrantees of the panels, inverters, and installation. They also price matched the competition which had a much less warrantee. They took care of all the details with installation, inspections and start up with Public Service Company of New Mexico.
Read more
Latest review
Les Peterson, 1 week ago
Sunpro Solar was my choice because of their warrantees of the panels, inverters, and installation. They also price matched the competition which had a much less warrantee. They took care of all the details with installation, inspections and start up with Public Service Company of New Mexico.
4.48 29 Reviews
Latest review
Tesuque Solar Array YES!, over 1 month
They were not the cheapest bid, but seemed the most knowledgeable and were very willing to be sure we were happy with everything as the installation proceeded. They also were very good at communication, scheduling and follow through.
Read more
Average cost (5kW system)
$23,200 ($4.64 per watt)
Latest review
Tesuque Solar Array YES!, over 1 month
They were not the cheapest bid, but seemed the most knowledgeable and were very willing to be sure we were happy with everything as the installation proceeded. They also were very good at communication, scheduling and follow through.
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.
4.32 25 Reviews
Latest review
JOHN, over 1 month
first, the office was local, second the response from the salesman and installation team was very cordial and helpful.
Read more
Latest review
JOHN, over 1 month
first, the office was local, second the response from the salesman and installation team was very cordial and helpful.
4.32 7 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.
4.25 6 Reviews
Latest review
Jeff and Ashley Jones, over 1 month
<br />
Read more
Average cost (5kW system)
$35,050 ($7.01 per watt)
Latest review
Jeff and Ashley Jones, over 1 month
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