New Mexico Solar Panels
Pricing & Installation Data

Find out if solar panels are right for your home in New Mexico.

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New Mexico

Solar Panels in New Mexico

The Land of Enchantment is making significant strides in harnessing solar energy, with a notable increase in major solar projects. As of the second quarter of 2023, the state has installed solar facilities capable of generating 1,777 MW, sufficient to power 419,068 homes. 

New Mexico has been part of receiving significant investments in the solar sector, amounting to $3.2 billion which is shared with Texas. Major projects include the Chaves Solar in Roswell, Meta's Encino Solar project in Sandoval, and the Britton Solar Energy Center in Moriarty, which collectively contribute to powering tens of thousands of homes.

Cost of Solar in New Mexico

The average price for a home solar panel system in New Mexico is $20,340 for a 6kW system or about $3.39 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.

Average Cost
6 kW System
Average Cost
10 kW System
Estimated
Tax Credit
(10 kW System)
Average
Cost/Watt
U.S.Average$18,771$31,285$9,385.50$3.13
New Mexico$19,020$31,700$9,510$3.17
U.S.Average$18,771$31,285$9,385.50$3.13
Most Costly State(Michigan)$22,680$37,800$11,340$3.78
Least Costly State(Arizona)$14,640$24,400$7,320$2.44

Costs by Solar System Size in New Mexico

For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.

I.E. Get the best bang for your buck.

System SizeSystem CostCost After Federal Tax Credit
5 kW$15,850$8,785
6 kW$19,020$10,542
7 kW$22,190$12,299
8 kW$25,360$14,056
10 kW$31,700$17,570

Pros and Cons of Solar in New Mexico

Unfortunately, even solar isn’t perfect. We want you to make the best decision for you. So, we have collected some pros and cons associated with installing solar in your home state. We suggest weighing everything!

Opinions matter and how you interpret one con, may outweigh all the other pros. Our goal is to present the most common prone and cons to let you make up your own mind.

New Mexico Solar Pros

  • Reduce or eliminate electric bills
  • Energy independence from the grid
  • Reduce your carbon footprint
  • 30% (up to $6,000) Statewide tax credit available
  • Statewide net metering available
  • Increase home value (4.1% on average)
  • New Mexico ranks 20th nationally in solar in the U.S. in Q1 2023
  • There are many solar buy-back plans available

New Mexico Solar Cons

  • Not viable for all roofs or homes
  • Installation costs
  • Financial liability
  • Fewer savings than other states due to having lower electricity costs

EnergyBot's Take

New Mexico has an ideal climate for solar panels. Plenty of sunlight during peak energy usage seasons. But, electricity costs in New Mexico are relatively low compared to other states making the $ per power in savings less. However, don’t let that deter you. The amount of sunshine, could make up for the lower rate.

Most homes could still expect a payback of 5 to 8 years. And with solar panels average lifespan of 20 to 25 years, that’s a great ROI. If you prioritize energy independence and renewable energy, those could be great additional benefits. 

Overall, we believe solar would be a viable for most. 

If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.

Leasing vs Buying Solar Panels in New Mexico

There are several ways you can purchase and/or finance your solar panel installation in New Mexico. Your goals and financial situation will dictate which option is best for you.

Cash Purchase

The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.

Solar Loan

The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.

This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."

Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.

Solar Lease

Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.

Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:

  • Renew your lease agreement
  • Purchase the system
  • End your lease agreement

Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.

Power Purchase Agreements

A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.

For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.

Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.

Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.

New Mexico Solar Incentives

In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. The primary incentives include the Solar Market Development Tax Credit (SMDTC), which allows homeowners to claim 10% of the project costs up to $6,000 as a state tax deduction, and the Sustainable Building Tax Credit (SBTC), which offers up to $6.50 per square foot for sustainable design in new constructions and renovations. Additionally, a property tax exemption is in place, ensuring homeowners are not taxed for the increase in home value after installing solar systems. It's important to note that the SMDTC has a limited annual budget, urging residents to apply early in the year to secure their incentives.

This table shows the available incentives in New Mexico. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.

Name State Category Type
Schools with Sol NM Financial Incentive Grant Program
Fuel Mix and Emissions Disclosure NM Regulatory Policy Generation Disclosure
System Benefits Charge NM Regulatory Policy Public Benefits Fund
Net Metering NM Regulatory Policy Net Metering
New Mexico Solar Easements & Rights Laws NM Regulatory Policy Solar/Wind Access Policy
Clean Energy Revenue Bond Program NM Financial Incentive Bond Program
PV Leasing Program NM Financial Incentive Leasing Program
Renewable Portfolio Standard NM Regulatory Policy Renewables Portfolio Standard
Renewable Energy Production Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
Interconnection Standards NM Regulatory Policy Interconnection
Mandatory Utility Green Power Option NM Regulatory Policy Mandatory Utility Green Power Option
Clean Energy Grants Program NM Financial Incentive Grant Program
PNM - Performance-Based Solar Program NM Financial Incentive Performance-Based Incentive
Solar Market Development Tax Credit NM Financial Incentive Personal Tax Credit
Efficient Use of Energy Act NM Regulatory Policy Public Benefits Fund
PNM - Residential Energy Efficiency Rebate Program NM Financial Incentive Rebate Program
Energy Efficiency Standards for State Buildings NM Regulatory Policy Energy Standards for Public Buildings
Kit Carson Electric Cooperative - ETS System Rebate Program NM Financial Incentive Rebate Program
Construction Standards to Accomodate Solar Collectors NM Regulatory Policy Building Energy Code
2015 Sustainable Building Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
2015 Sustainable Building Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
Renewable Energy Production Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
Solar Energy Gross Receipts Tax Deduction NM Financial Incentive Sales Tax Incentive
Alternative Energy Product Manufacturers Tax Credit NM Financial Incentive Industry Recruitment/Support
Advanced Energy Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
Central New Mexico Electric Cooperative - Residential Energy Efficiency Rebate Program NM Financial Incentive Rebate Program
Interconnection Standards NM Regulatory Policy Interconnection
Farmington Electric Utility System - Net Metering NM Regulatory Policy Net Metering
Xcel Energy - Solar*Rewards Program NM Financial Incentive Performance-Based Incentive
El Paso Electric Company - Small and Medium System Renewable Energy Certificate Purchase Program NM Financial Incentive Performance-Based Incentive
Advanced Energy Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
Local Option - Renewable Energy Financing District/Solar Energy Improvement Special Assessments NM Financial Incentive PACE Financing
PNM - Commercial Energy Efficiency Rebate Program NM Financial Incentive Rebate Program
El Paso Electric Company - Commercial Efficiency Program NM Financial Incentive Rebate Program
El Paso Electric Company - Residential Efficiency Program NM Financial Incentive Rebate Program
El Paso Electric Company - EPESaver High Efficiency Cooling Program NM Financial Incentive Rebate Program
Geothermal Heat Pump Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
Geothermal Heat Pump Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
Gross Receipts Tax Exemption for Sales of Wind and Solar Systems to Government Entities NM Financial Incentive Sales Tax Incentive
City of Albuquerque - Green Power Purchasing NM Regulatory Policy Green Power Purchasing
Property Tax Exemption for Residential Solar Systems NM Financial Incentive Property Tax Incentive
Energy Efficiency Resource Standard NM Regulatory Policy Energy Efficiency Resource Standard
Agricultural Biomass Income Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
Agricultural Biomass Income Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
New Mexico Gas Company - Residential Efficiency Programs NM Financial Incentive Rebate Program
Xcel Energy (Electric) - Commercial Energy Efficiency Rebate Program NM Financial Incentive Rebate Program
Solar/Wind Construction Permitting Standards NM Regulatory Policy Solar/Wind Permitting Standards
City of Albuquerque - Solar Easements and Rights Laws NM Regulatory Policy Solar/Wind Access Policy
Albuquerque City - Green Path Program NM Regulatory Policy Building Energy Code
PNM EV Charger Rebate Program NM Financial Incentive Rebate Program
2021 Sustainable Building Tax Credit (Corporate) NM Financial Incentive Corporate Tax Credit
2021 Sustainable Building Tax Credit (Personal) NM Financial Incentive Personal Tax Credit
New Solar Market Development Tax Credit NM Financial Incentive Personal Tax Credit
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment US Financial Incentive Loan Program
Conservation Security Program (CSP) Production Incentive US Financial Incentive Performance-Based Incentive
Business Energy Investment Tax Credit (ITC) US Financial Incentive Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol US Financial Incentive Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS) US Financial Incentive Corporate Depreciation
Energy Star Financing and Mortgages US Financial Incentive Loan Program
USDA Rural Housing Service Loans US Financial Incentive Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate) US Financial Incentive Corporate Tax Exemption
Renewable Energy Production Incentive (REPI) US Financial Incentive Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC) US Financial Incentive Corporate Tax Credit
Small Business Administration Loan Programs US Financial Incentive Loan Program
Energy-Efficient Mortgages US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Grants US Financial Incentive Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities US Financial Incentive Grant Program
Green Power Purchasing Goal for Federal Government US Regulatory Policy Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction US Financial Incentive Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders US Financial Incentive Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit US Financial Incentive Industry Recruitment/Support
Residential Energy Efficiency Tax Credit US Financial Incentive Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans US Financial Incentive Loan Program
Federal Appliance Standards US Regulatory Policy Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies US Regulatory Policy Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs) US Financial Incentive Loan Program
Qualified Energy Conservation Bonds (QECBs) US Financial Incentive Loan Program
U.S. Department of Treasury - Renewable Energy Grants US Financial Incentive Grant Program
USDA - High Energy Cost Grant Program US Financial Incentive Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program US Financial Incentive Loan Program
USDA - Repowering Assistance Biorefinery Program US Financial Incentive Grant Program
Title I Property Improvement Loans US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program US Financial Incentive Grant Program
Low Income Home Energy Assistance Program (LIHEAP) US Financial Incentive Grant Program
Weatherization Assistance Program (WAP) US Financial Incentive Grant Program
Fannie Mae Green Financing – Loan Program US Financial Incentive Loan Program
Qualified Commercial Clean Vehicle Tax Credit US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate) US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal) US Financial Incentive Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit US Financial Incentive Personal Tax Credit

State Tax Credit: New Mexico offers a state solar tax credit that covers 10% of your installation costs, up to a maximum of $6,000. If your system costs about $18,000, you can expect a credit of about $1,800. This credit can be carried forward for 5 years if your annual tax due is less than this amount.

Net Metering: In New Mexico, you can get 1-to-1 retail electricity rate credits for the excess solar electricity you send back into the grid. These credits are carried forward indefinitely. You also retain control of any renewable energy credits your solar system produces, which you can sell to PNM as part of their solar performance program.

PNM Solar Payments: PNM offers a program where they pay you $0.0025 per kWh for a term of 8 years for the renewable energy credits your system generates. However, this amounts to a small sum of around $300 over 8 years, excluding a $150 application fee.

Property Tax Exemption: Installing a solar power system increases your home value, but thanks to a property tax exemption in New Mexico, your property taxes will not increase.

New Mexico Solar Companies

There are hundreds of solar companies in New Mexico. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.

To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.

The solar companies we partner with:

  • Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
  • EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
  • Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.

We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.

Before You Install Solar Panels

Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.

  • What are the long-term savings and payback period for installing a solar panel system?
  • How will installing solar panels impact my home's value?
  • What is the system’s Return on Investment (ROI)?
  • Are there any specific design or aesthetic considerations for solar panel installation?
  • How do I weigh the environmental benefits against the costs of installation?
  • What are the specific terms and conditions for the installer?

Is the NM Solar Industry Growing Too Fast?

In August of 2023 in New Mexico, questions raise about the rapid growth of the solar industry. NM Solar Group, once a leading solar company in the state, abruptly closed its doors, citing rising interest rates and a tightening credit market. The sudden closure left customers who had made down payments and employees awaiting paychecks in a difficult situation. The incident serves as a cautionary tale about the potential pitfalls of rapid expansion in the solar sector. 

In the aftermath, the New Mexico Attorney General's Office filed a lawsuit against NM Solar Group to recover thousands of dollars for customers who paid for services they never received. This legal action, coupled with an investigation into other solar companies for similar complaints, highlights the need for stronger consumer protections and regulatory oversight in an industry experiencing rapid growth. 

Why Trust EnergyBot

We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.

Now using the same one-of-kind technology and platform we are helping consumers in New Mexico decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.

We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.

New Mexico Solar FAQs

The cost of solar panel installation in New Mexico can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.

A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in New Mexico is $20,340 for a 6kW system or about or about $3.39 per watt.

The number of solar panels you would need depends on a variety of factors such as:

  1. Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
  2. The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
  3. The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
  4. The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.

To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.

  • Lower Electricity Bills:
    Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
  • Environmental Benefits:
    Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
  • Increased Home Value:
    Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
  • Long-Term Savings:
    While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.
  • Location:
    Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
  • Roof Orientation:
    Ideally, your roof should be facing south to get the most sunlight throughout the day.
  • Roof Condition:
    Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.

The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.

Your installer should be able to give you an estimated timeline based on your specific project.

Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.

Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.

Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.

There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home. 

New Mexico, getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction. 

Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees. 

If you're working with a solar installation company, they often handle the permitting process for you.

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