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 financing programs available, homeowners can now go solar for $0 upfront and start saving immediately. Whether you choose to pay cash or finance your system, there are several incentives that lower the cost to pennies on the dollar.
New Mexico’s solar incentives are some of the best in America.
Lots of sunshine and great solar incentives make New Mexico one of the best places in the U.S. for homeowners and businesses to go solar. Whether you choose to purchase or finance your solar electric system, you are making a sound decision to simply pay less for something you need to purchase (electricity) and can pay itself off from day one (even if you choose to finance with $0 out of pocket). Solar energy systems not only save you money, but they also increase the value of your home. Thanks to the many solar incentives and rebates in New Mexico, a homeowner or business can save thousands on the cost of going solar.
Here are just a few New Mexico solar rebates and incentives:
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, El Paso Electric Company, and several other local co-op utilities offer net metering programs in New Mexico.
Sustainable building tax credit
The New Mexico state government will credit you on your taxes if you install solar as part of your sustainable building efforts on your home. In order to qualify, your home needs to be certified sustainable by the U.S. Green Building Council, and the value of the credit is determined by your certification level. You could earn as much as $6.50 per square foot for having a sustainable solar home in New Mexico!
Property & gross receipts 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 VALUE OF PROPERTY TAX EXEMPTION: Variable
AVERAGE VALUE OF GROSS RECEIPTS TAX EXEMPTION: $1,750
Federal Solar Tax Credit (ITC)
Perhaps one of the greatest and most-known solar incentives comes from the Federal government.
All 50 states are eligible for a 30% Federal Investment Tax Credit (ITC) to reduce the cost of the system. This is calculated as 30% of 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. Your solar specialist will calculate this for you and can consult with your accountant to fill out Form 5695 to claim your credit.
AVERAGE VALUE OF INVESTMENT TAX CREDIT: $7,500
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.