Individual panel prices
Prices of DIY kits
Installed system prices
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.
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Prices based on a 5.4kW system, after 26% federal tax credit
Note: Prices after 26% Federal Solar Tax Credit
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.
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.
(forecast avg New Mexico electric rates over the next 25 years)
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 has a state solar tax credit that is equal to 10% of the total purchase and installation costs of a solar panel system.
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.
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.
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.
(After tax credit)
(After tax credit)
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.
Minimum of 25 years but generally 30 or more
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.
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 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.
No, but cleaning them can improve power generation if they are dirty.
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.
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:
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.
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.
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.
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
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.
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