New Mexico Solar Incentives for Homeowners and Businesses
New Mexico’s solar incentives are some of the best in America.
Lots of sunshine and great solar incentives make New Mexico a great place to have solar panels installed. Whether you choose to purchase or finance your solar electric system, you are making a sound decision to simply pay less for something you’re already purchasing (electricity). Solar energy systems not only save you money, but they can also increase the value of your home. Thanks to the many solar incentives and rebates in New Mexico, it’s a great place for solar; there’s a reason our state flag has a sun (zia) on it!
Here are just a few New Mexico solar incentives and rebates:
Net metering in New Mexico.
When you put solar panels on your roof, you want to make sure you get credit for the power your system generates. Luckily, New Mexico has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power (think of it like roll-over minutes). PNM, Central New Mexico Electric, Mora-San Miguel, and several other local co-op utilities offer net metering programs in New Mexico.
Don’t wait – some areas are running out of grid capacity for additional solar, which could limit future net metering program availability.
New Mexico Solar Market Development Tax Credit
The New Mexico Solar Market Development Tax Credit or “New Mexico Solar Tax Credit” was passed by the 2020 New Mexico Legislature and signed by New Mexico Governor Michelle Lujan Grisham.
- This bill provides a 10% tax credit with a savings value up to $6,000* for a solar energy systems.
- The bill states that a business or homeowner who purchases and installs a solar energy system on or after March 1, 2020 are eligible for this tax credit.
- First come first served - the solar tax credit has an annual allotment of $30M. Don't wait to get your solar project started.
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Ready to harness the power of the sun and start saving on your energy bills? Contact us today at (505) 344-0071 to schedule your free solar consultation!
Property & sales tax exemption for solar
Even though solar can increase the value of your home and allows for greater marketability, that extra value is exempt from property taxes in New Mexico. A property tax exemption makes it more economically feasible for a taxpayer to install a solar system on a residential or commercial property – you get the financial benefits of generating your own power, without having to worry about a higher tax bill!
New Mexico also offers state sales tax exemptions for solar panel installation. A sales tax exemption means that homeowners and businesses would not have to pay any additional state sales tax on their solar panel system.
AVERAGE SAVINGS VALUE OF PROPERTY TAX EXEMPTION: Variable
AVERAGE SAVINGS VALUE OF SALES TAX EXEMPTION: $1,750
Federal Solar Tax Credit (ITC) & Inflation Reduction Act.
Perhaps one of the greatest and most-known solar incentives, The Federal Investment Tax Credit (ITC) for solar ended on December 31, 2025 with the passing of HB1 “One Big Bill”.
Curious to see how solar pencils out without it? Check out our blog about going solar in 2026 without the Federal Solar Tax Credit.
Solar System Incentives. How does $0 out of pocket sound?
Most people are aware that solar will ultimately save them money, but some also believe that solar has a large upfront cost, which isn’t true! With local solar financing programs available, you can now switch to solar for $0 upfront and start saving immediately. Whether you choose to pay cash or finance your system, there are several incentives that make having solar panels installed on your home a great investment; both economically and environmentally!
Our Customers Love Us!
We are committed to providing the highest level of service to our customers – We’ve built our reputation on it, and it’s what has made us a leader in solar throughout New Mexico. Read more from our happy customers, then call us to learn how we can help you too!
My wife and I are amazingly happy and thankful for an incredible job well done! There have been countless positive interactions with everyone involved with the installation from Positive Energy Solar. It amazes us that we did not have a single issue or concern that even begins to approach a ‘negative experience.’ From the knowledgeable, polite, and punctual staff to their positive relationships with county and state workers, this has been a flawless and pleasant experience. The Positive Energy checklist for filing the paperwork with the state was also an invaluable help, allowing the filing to go flawlessly. Thanks! And now we will hope for lots of photons to make electrons 😉
In the Land of Sunshine, we’re glad to review Positive Energy Solar. Fully satisfied with everything done by them. The company has a reputation for excellence, with more awards and recognition than others. Well-organized, customer-centric, and minimal involvement needed. Watching our meter run energy back into the grid is rewarding.
Positive Energy Solar makes going solar easy. They provide straightforward facts about the best system for your needs without a big sales pitch. Their professional team addresses all your concerns and is clearly knowledgeable. A rare, positive experience in today’s world!
Generate Positive Energy!
We are committed to providing the highest level of service to our clients – We’ve built our reputation on it, and it’s what has made us a leader in solar power in New Mexico.
