Solar power in Albuquerque, New Mexico
As an Albuquerque resident you most likely purchase your power from PNM.
What solar incentives do PNM offer in my city?
PNM is required by law to provide a program called net metering to all their solar customers.
PNM's REC program
Unfortunately, REC payments are currently set at $0.0025/kWh which would make the average solar owner in Albuqurque about $20 per year. Considering the contract term is only 8 years and the application fee is $150 this incentive is barely worth the paperwork.
How does the federal solar tax credit affect me?
Any one with an income tax liability is eligible to claim part of the cost of a solar system as a deduction to federal taxes. There is also no dollar limit to this incentive.
Net Metering Broken Down
Net metering means that at times like during the middle of the day when your solar system is producing more power than needed to service your home the excess generation is sent to PNM via the grid and PNM must credit that power at their retail rate in the form of credit on your bill.
What will net metering make my bill look like?
Your electric bill on net metering entirely depends on how much power your home draws from the grid and how much power your solar system exports to the grid. For example if your home drew 800kWh of power from the grid at times your solar couldn't service your homes demand but your solar system exported 800kWh of excess generation you would not receive an electric bill.
In the example above the only bill you would receive would be a minimum service charge which varies based on which rate you're on but is normally about $10-$20 per month.
What if my solar system exports more energy than I draw from the grid?
in any given month if you solar system has exported more energy than what was drawn from the grid each kWh is still valued at 1 for 1 with the retail electric rate and is carried over to the next month.
If any credit remains at the end of the yearly billing cycle PNM will value each kWh of credit at the avoided cost rate (about 3-4 cents) and deposit the balance into your account directly.
The average cost of installing residential solar panels in Albuquerque,
New Mexico in 2020 is
$2.78 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Albuquerque, NM
is $13,900.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in New Mexico is only 656kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Albuquerque solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our New Mexico solar savings calculator can do this because it contains a database of the electric rates charged by Central New Mexico El Coop Inc, Continental Divide El Coop Inc, PNM (Public Service Co of NM)
How much can solar panels save you in Albuquerque
What does the cost of a real solar system look like?
Facts about installing a 6.07kW solar system in Albuquerque, NM
This system would offset 100% of your energy usage if your typical monthly bill is $169, however your situation may vary so try our Albuquerque solar calculator to get a result tailored to you.
$11,198
Net cost of system
5 Years
Average payback time
9,750 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
37¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 6.07kW system
Life-time savings on this system over the next 25 years
$74,107
(Prices shown after repayments of capital)
33
Solar companies in Albuquerque, NM that provide pricing through the Solar-Estimate marketplace.
Average total cost of solar panel installation in Albuquerque
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,460 | $6,977 |
| 4kw | $8,495 | $9,175 |
| 5kw | $10,434 | $11,269 |
| 6kw | $12,343 | $13,331 |
| 7kw | $14,141 | $15,273 |
| 8kw | $15,925 | $17,199 |
| 9kw | $17,582 | $18,989 |
| 10kw | $19,240 | $20,779 |
Find out what system size you need for your home
Going solar in New Mexico
Check out all of the ways energy providers of New Mexico can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exemption for Solar Systems | State | Property Tax Incentive |
| Net Metering | State | Net Metering |
| New Solar Market Development Income Tax Credit | State | Rebate Program |
| PNM - Performance-Based Solar Program | Utility | Performance-Based Incentive |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
