New Mexico ranks #13 in America for savings from installing solar panels on your home
New Mexico solar power facts
Average cost of a 5kw solar power system in 2016
Price shown before incentives
Average payback time
Average lifetime savings
Price shown after repayments of capital
Levelized cost of solar energy
If you don't get solar
The forecast average utility price over the next 25 years
(per kW of peak DC solar panels)
Cash flow graph based on cash purchase of a 5kw system
Solar companies in New Mexico that provide pricing through the Solar-Estimate marketplace
Solar power in New Mexico
To state the obvious there is a lot of sun in New Mexico and so solar panels installed there produce more power than in almost any other place in the country.
Very recently there has been a move by some States to end Net Metering, this is very bad. Net Metering is the best overall solar incentive for most folks so you might want to get in while the gettn's good.
Payback times on systems are around 10 to 12 years depending on factors like the size of the system and the brands of equipment used as well as what Utility you buy your power from.
Your local Solar Pro's know what's going on, talk to them.
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Compare solar quotes from the top solar companies in New Mexico
Compare solar quotes from the top solar companies in New Mexico
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Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so whilst solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
Unlock live pricing on the best solar panel brands!
How much electricity will solar panels produce in New Mexico
Solar panels produce different amounts of energy in different locations.
Around the Santa Fe area solar panels installed on a south facing 27 degree pitch roof will typically produce:
1,150 kWh per year per 1kw of peak DC (direct current) capacity
For more information about how your location, roof direction and roof tilt affects solar power production use the solar panels calculator and enter your address below.
What rebates, solar tax credits and other solar incentives are available in New Mexico
Net Metering in New Mexico
Many people don't understand the importance of net metering policy to the residential solar industry.
Solar by its nature generates most power during the middle of the day when most people are at work or school and little power is being used in the home.
Net metering means that for every unit of surplus solar generation generated during the day you effectively get a credit for a kilowatt hour of power purchased from the grid at another time.
Excess generated Kilowatt hours or credits can be rolled over into the next month billing period. If you exceed $20 in extra credits over the billing month you can get cheque, very nice.
The Solar Carve Out and New Mexico's REC's
New Mexico has a renewable energy target that is mandated in legislation that requires utilities operating in the state to source a certain percentage of their electricity from renewable sources.
The legislature has further mandated that part of this renewable energy must come from solar, this is known as the solar carve out.
New Mexico has mandated 20% of Renewable Energy by 2020 and the solar carve out further requires that 20% of that power comes from solar panels.
This is good news but the program has proved popular and is likely to be fully subscribed soon.
The way they enact this program, so that the liable entities (the utilities) do not have to build this solar capacity themselves is to attach a Renewable Energy Credit (REC) to each MWH of solar electricity generation in the state.
You (or your installer) registers your installation and you can then create and trade these REC certificates.
However the different Utilities that run these programs have slightly different structures in the way they work and the targets they are required to meet.
This means that programs have become or are quickly becoming fully subscribed, your local Solar Pro will know what's applicable for your situation.
El-Paso Electric Company small and medium system Renewable Energy Purchase Program basically works by crediting $.02 cents per kWh (kilowatt hour) for solar systems up to 10kW in size. More here.
Xcel Energy's program is fully subscribed for systems up to 10kW, bad news for most home sized solar pv systems.
However if you can get a 10kW or larger system up to 100kW you could still be able to get $0.05 cents per kWh (kilowatt hour).
Cost of Solar Systems in New Mexico
You should be able to buy good quality solar power systems from reputable installers in the range of $3.20 to $3.70 per watt, before incentives and fully installed.
At this sort of price level you are talking about a payback period of 7 years or less and an internal rate of return on investment of around 20%.
Is it better to lease or purchase solar panels in New Mexico?
New Mexico has made various zero down solar lease and solar PPA products popular in New Mexico generally speaking you will make far greater savings over the life of a system if you purchase your solar panels (whether with cash you have available or through a HELOC loan) rather than enter into a third party owned solar lease or Solar PPA agreement.
You can use the solar savings calculator to see the difference in the overall savings over the life of a system.
Tax Information on New Mexico Solar Systems
There is no sales tax and new solar installs are 100% property tax exempt
New Mexico Interconnection guidelines
New Mexico has a standard interconnection process in place that applies to Solar Installs up to 10 kW.
There is more info about it in the link but your best source of current info is likely to be your local solar installers.
Regardless of what you want to know about the economics of installing solar panels for your home or business in New Mexico we have a solar calculator that can show you exactly the information your require.
You can either use our full monty solar calculator that shows you everything you could possibly want to know or you can use one of our range of smaller calculators for specific solar calculations that focus on providing you only with the specific information you require.
What you can find out about installing solar panels in New Mexico using our full monty solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt hours) you can expect from your solar system in New Mexico
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in New Mexico or Santa Fe;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
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How much do solar panels cost in New Mexico
$3.10 per watt
Cash purchased solar system
Before 30% solar tax credit
$3.50 per watt
Financed solar system
Before 30% solar tax credit
Av. 15 year term, 2.5% price escalator
What are the pros and cons of buying solar panels for your home in New Mexico
The advantages of installing solar panels in New Mexico is there is both state based incentives and the federal tax credit. Lots of sunshine means a solar pv system in NM is going to produce very well. Some incentives are becoming fully subscribed so best get in while you can.
The disadvantage of installing solar panels for your home in New Mexico is that some incentives have alreadt expired or are fully subscribed, best talk to a local Solar Pro to see what you might be eligable for. Despite this there are still excellent incentives available in New Mexico. Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.