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New Mexico Solar Incentives

Solar System Incentives

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!

New Mexico’s solar incentives are some of the best in America.

New Mexico solar incentives

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 rebates and incentives:

Net Metering

Source: EnergySage

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, Los Alamos County, and several other local co-op utilities offer net metering programs in New Mexico.

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 non-refundable tax credit.
  • First come first served - the solar tax credit has an annual allotment of $12M. This will go quickly, so don't wait to get your solar project started.

New Mexico Solar Tax Credit 2020

Property & sales tax exemption for solar

Even though solar increases 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

New Mexico Solar tax exemption

Federal Solar
Tax Credit (ITC) & Inflation Reduction Act.

Perhaps one of the greatest and most-known solar incentives comes from the Federal government.

All 50 states are eligible for a Federal Investment Tax Credit (ITC)* to reduce the cost of the system. Thanks to the recently signed Inflation Reduction Act, solar projects now quality for a 30% tax credit based on the value of your system (parts, labor, permitting, etc.) If you choose to purchase or finance your system, this tax credit goes to you directly through your federal tax return!

AVERAGE SAVINGS VALUE OF INVESTMENT TAX CREDIT: $9,000

* Consult with tax professional to determine if credit can be fully utilized based on your taxable liability.

Solar System Costs

As you can see, the cost for solar panel installation in New Mexico has many incentives and variables that affect the final investment cost. To get an accurate cost of going solar in New Mexico, it's best to speak with one of our local solar consultants who will help cover all the details.

Our Reviews

  • Thorough and supportive from start to finish

    Positive Energy Solar was responsive and helpful from the time we first called, through our decision-making process, and throughout the planning and installation of our system. Dave went over the options with us and answered all our questions, Zach worked with us to plan our system and guide us through the necessary steps with PNM and the recommended electrician, who was also very helpful and efficient, and the installation went smoothly and as planned. Dave also followed up with us to be sure the system was working as it should. We are very pleased with Positive Energy and would recommend them wholeheartedly to anyone considering a solar installation...

    Albuququerque, NM

  • from start to finish they were excellent, would definitely recommend them to anybody.

    Great solar system, excellent workmanship, very professional people, they got the job done before due date, from start to finish they were excellent, would definitely recommend them to anybody.

    Albuquerque, NM

  • Couldn't be more pleased!

    Our experience with Positive Energy Solar couldn't have been easier or more professional. Our contact, Taylor, explained everything clearly, giving us various options to choose from, both in terms of how much solar we wanted to install and whether we wanted to pay up front or choose a pay-as-you-generate plan. Everyone we dealt with was professional and courteous and we got our panels installed in a timely manner. We are now enjoying our website monitor that tells us every day how much electricity we have generated. Between our solar array and our new electric car, we are thrilled to be "part of the solution."

    Santa Fe, NM

  • The follow up once installed is beyond expectations. Their team is made up of solar experts who really care about their clients.

    Over the last 6 years, my wife and I have worked with Positive Energy Solar to install solar panels on 2 homes we've owned here in Santa Fe. From specifying to design and placement, their service and workmanship are excellent. After the installation they followed up to assure full output and taught me how to read the monitoring system. In both cases they specified the correct system through careful review of my electric bills, then did proper installation with very durable components and methods of anchoring, all properly wired to code. The follow up once installed is beyond expectations. Their team is made up of solar experts who really care about their clients. We are very pleased to be converting the New Mexico Sun into electric energy. We are very pleased with the entire program and results.

    Santa Fe, NM

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