New Mexico solar panels
Updated August 19, 2020Main topics:
Solar panel cost in New Mexico
The average cost for an installed residential solar system in New Mexico is currently $10,838 after claiming the 26% federal solar tax credit. This is $2.44 per watt.
Showing data for:
Prices based on a 5.4kW system, after 26% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$34,149-$41,738
Payback period
4.9-6 years
Recommended size for the selected utility bill
5.4kW
Chart 1: Distribution curve of NM residential solar cost 2020
$10K
SolarReviews average$10K
SolarReviews average
Note: Prices after 26% Federal Solar Tax Credit
NM solar panel cost calculator
Cash flow graph based on cash purchase of a 5.4kW system
New Mexico solar power overview
New Mexico is a great place to live if you’re considering going solar. Systems generate more solar power in New Mexico than systems in other areas of the country because of the abundant sunshine. High rates of electricity production combined with the state’s solar tax credit, net metering program, and utility rebates can create huge savings for New Mexico homeowners.
Are solar panels worth it in New Mexico
Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime
?
5¢ /kWh
If you don't get solar
29¢ /kWh
(forecast avg New Mexico electric rates over the next 25 years)
New Mexico solar incentives & tax credits
Federal solar tax credit
The most significant incentive to install solar panels for homes and businesses is the federal tax credit. Right now, the federal tax credit is equal to 26% of the total installed costs of installing a solar system. At the end of 2020, the amount of the credit will fall to 22%. This means that in order to maximize your savings potential, the best time to go solar in New Mexico is now.
New Mexico state tax credit
New Mexico has a state solar tax credit that is equal to 10% of the total purchase and installation costs of a solar panel system.
Net metering
New Mexico has a statewide net metering policy. All utilities that are regulated by the Public Regulation Commission must provide a credit that is equal to the full retail rate of electricity for excess solar energy sent to the grid.
Utility incentives
Some New Mexico utilities offer performance based incentives in exchange for solar renewable energy credits. El Paso Electric, for instance, will pay customers $0.02 per kWh of energy your solar system produces.
Property tax exemptions
New Mexico does offer a property tax exemption when homeowners install solar panels. For the purpose of property tax assessments, residential solar systems are not treated as an improvement to property and therefore do not increase the amount a homeowner pays in property taxes.
Table 2: Available incentive programs
|
Eligibility: Federal incentive
Type: Personal Tax Credit
|
|
Eligibility: State incentive
Type: Rebate Program
|
Best unit price
$562.50 ($1.50 per watt)
Best system price
Installed 4.9kW system
$11,789.81
($2.42 p/w)
LG375A1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$320.00 ($0.96 per watt)
Best system price
Installed 5.0kW system
$12,375.07
($2.46 p/w)
LG335N1K-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$430.00 ($1.15 per watt)
Best system price
Installed 4.9kW system
$12,567.14
($2.58 p/w)
LG375Q1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$473.34 ($1.30 per watt)
Best system price
Installed 5.1kW system
$12,870.41
($2.52 p/w)
LG365Q1K-V5 overview
Rated power
365 watts
Efficiency
21.1
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$291.18 ($0.88 per watt)
Best system price
Installed 5.0kW system
$11,995.98
($2.42 p/w)
VBH330RA03K overview
Rated power
330 watts
Efficiency
19.7
Number of Cells
96
Cell type
Mono-crystalline Silicon
Manufactured
US
Best unit price
$340.00 ($1.00 per watt)
Best system price
Installed 5.1kW system
$15,300.00
($3.00 p/w)
VBHN340SA17 HIT+ overview
Rated power
340 watts
Efficiency
20.3
Number of Cells
96
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$432.00 ($1.31 per watt)
Best system price
Installed 5.0kW system
$12,190.19
($2.46 p/w)
VBHN330SA17E overview
Rated power
330 watts
Efficiency
19.7
Number of Cells
96
Cell type
monocrystalline
Manufactured
US
Best unit price
$297.60 ($0.89 per watt)
Best system price
Installed 5.0kW system
$13,045.96
($2.60 p/w)
VBHN335SA17 overview
Rated power
335 watts
Efficiency
20
Number of Cells
96
Cell type
monocrystalline
Manufactured
US
Best unit price
$800.00 ($2.22 per watt)
Best system price
Installed 5.0kW system
$12,725.87
($2.52 p/w)
SPR-X22-360 overview
Rated power
360 watts
Efficiency
22.2
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$600.00 ($1.83 per watt)
Best system price
Installed 4.9kW system
$12,346.78
($2.52 p/w)
SPR-E20-327-COM overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,209.22
($2.69 p/w)
SPR-E20-327-D-AC overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,120.04
($2.67 p/w)
SPR-E20-327 overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$240.01 ($0.60 per watt)
Best system price
Installed 4.8kW system
$10,466.46
($2.18 p/w)
CS3W-400PB-AG overview
Rated power
400 watts
Efficiency
17.9
Number of Cells
144
Cell type
polycrystalline
Manufactured
CA
Best unit price
$205.00 ($0.58 per watt)
Best system price
Installed 5.0kW system
$10,135.76
($2.04 p/w)
CS3U-355PB-AG overview
Rated power
355 watts
Efficiency
17.7
Number of Cells
144
Cell type
polycrystalline
Manufactured
CA
Best unit price
$207.90 ($0.66 per watt)
Best system price
Installed 5.0kW system
$10,652.98
($2.11 p/w)
CS3K-315MS overview
Rated power
315 watts
Efficiency
18.96
Number of Cells
120
Cell type
Mono-crystalline Silicon
Manufactured
CA
Best unit price
$247.00 ($0.75 per watt)
Best system price
Installed 5.0kW system
$10,981.66
($2.22 p/w)
CS1H-330MS BLACK overview
Rated power
330 watts
Efficiency
19.57
Number of Cells
60
Cell type
Mono-crystalline Silicon
Manufactured
CA
Best unit price
$196.11 ($0.65 per watt)
Best system price
Installed 5.1kW system
$10,118.52
($1.98 p/w)
LR6-60-HPB-300M overview
Rated power
300 watts
Efficiency
18.1
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$172.00 ($0.56 per watt)
Best system price
Installed 4.9kW system
$9,732.53
($1.99 p/w)
LR6-60-HPB-305M overview
Rated power
305 watts
Efficiency
18.4
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$165.00 ($0.53 per watt)
Best system price
Installed 5.0kW system
$9,929.03
($2.00 p/w)
LR6-60-HPB-310M overview
Rated power
310 watts
Efficiency
18.7
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$228.00 ($0.60 per watt)
Best system price
Installed 4.9kW system
$9,743.83
($1.97 p/w)
LR4-60HPH-380M overview
Rated power
380 watts
Efficiency
20.9
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Average cost of solar panel installation in New Mexico by system size
System size* |
Cash purchase(After tax credit) |
Financed purchase(After tax credit) |
|---|---|---|
| 4kW | $10,664 | $11,410 |
| 5kW | $12,790 | $13,685 |
| 6kW | $14,646 | $15,671 |
| 7kW | $16,898 | $18,081 |
| 8kW | $19,440 | $20,801 |
| 9kW | $21,321 | $22,813 |
| 10kW | $23,420 | $25,059 |
Best solar companies in the main cities of New Mexico
Home solar basics
Is it better to lease or buy solar panels in New Mexico
You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.
How long do solar panels last?
Minimum of 25 years but generally 30 or more
How do solar panels work on a home?
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
How do solar panels work?
Grid-tied solar system
Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter where the direct current (DC) electricity is converted into alternating current (AC) electricity that can be used by your home or exported to the electric grid.
Off-grid solar system
Off-grid solar power involves meeting all your energy needs from the power of the sun. There’s no utility to fall back on. This means the solar installation needs to power the home not just during the day, when the sun is shining, but after dark as well.
Read more about types of home solar systems.
Do solar panels require regular maintenance?
No, but cleaning them can improve power generation if they are dirty.
Will residential solar power system cost fall in New Mexico in 2020?
Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in New Mexico will fall during 2020.
Can you buy DIY Solar Panel Kits and install them yourself in New Mexico?
Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar.
Reasons for this include:
- The permitting and inspection process for the utility, the state, and municipalities can be quite complex.
- The installation work is both dangerous and difficult, with electrical work having to be performed at heights.
- Often times, solar electricity customers will be charged a premium for DIY installations, which can limit savings.
- In some states, a solar system needs to be installed by a qualified solar contractor in order to take advantage of incentives. In New Mexico, a certified solar installer must be a journeyman with a certificate of competence in electrical and mechanical work. Utilities and incentive programs may have additional requirements.
SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US.
How much electricity do solar panel systems generate in New Mexico?
Depending on the location, solar panels will generate different amounts of electricity.
A solar system that is installed on a south-facing 27-degree pitch roof New Mexico will generate 1,150kWh of peak DC (direct current) capacity per year per 1kW in the Albuquerque area.
Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.
What are the pros and cons of installing solar panels in New Mexico?
The biggest advantages in New Mexico for installing solar panels are the state tax credit and the 26% federal tax credit.
New Mexico also offers a great net metering program, which allows homeowners to see significant savings on their electric bill.
There are not many disadvantages to installing solar panels in New Mexico. If you’re a New Mexico homeowner, you’ll be kicking yourself that you didn’t get solar while all of these incentives were still around. Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
What you can learn from our state solar panel calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in New Mexico
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in New Mexico or
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this New Mexico solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
Useful links
Related solar news
Catherine Lane
August 21, 2019
Is renting Tesla solar panels better than buying them?
Tesla’s rent solar program promises easy installation & minimal upfront costs. You’ll just have to forfeit your tax credits and rebates. We discuss whether or not it's worth it.
Dan Hahn
September 13, 2020
What are DC power optimizers?
How DC power optimizers work, and what their benefits and drawbacks are in your home solar energy system.
Catherine Lane
September 13, 2020
Alabama allows largest utility to increase ‘solar tax’ - guts state solar industry
Alabama Power has been approved to implement a high monthly charge on solar homeowners that will drastically reduce electric bill savings.
Dan Hahn
August 29, 2020
What are string inverter systems?
Everything you need to know about using string inverters in your home solar installation, including their advantages and disadvantages.
Ben Zientara
August 20, 2020
Sales and property tax exemptions for home solar power
Find out what sales and property tax exemptions you may be eligible for when you install solar panels on your home.