New Mexico ranks #13 in America for savings from installing solar panels on your home

Solar power in New Mexico

Last fact checked on July 02, 2019 by Catherine Lane

New Mexico gets more sun than many other states in the US, meaning a solar system will produce more in New Mexico than it will in other parts of the country. A high-producing system combined with the state’s net metering law means that there is potential for some serious savings in New Mexico. 

Although the state is lacking when it comes to state-wide incentives, as compared to other states, this is offset by some of the major investor-owned utilities that offer rebates to their solar customers. And with recent changes to the renewable portfolio standard, new incentives or rebates could start appearing in order to help utilities reach their zero-carbon emission goals. 

Recently, state legislatures introduced a bill that would create a solar income tax credit. Action on the bill has been postponed, but there is still a possibility that it may pass in the future. 

 

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Solar power in New Mexico

New Mexico solar power facts

$3.64
/watt

Average cost of a 5kw solar power system in 2019
Price shown before incentives

6 Years 6 Months

Average payback time

$68,645

Average lifetime savings
Price shown after repayments of capital


/kWh

levelized cost of solar energy

37¢
/kWh

If you don't get solar
The forecast average utility price over the next 25 years

9,750
kWh

Annual power production

Cash flow graph based on cash purchase of a 6.07kW system

This 6.07kW system would offset 100% of your energy usage if your typical monthly bill in New Mexico is $169, however your situation may vary so try our solar calculator to get a result tailored to you.


Solar companies in New Mexico that provide pricing through the Solar-Estimate marketplace

10


Best solar offers currently available in your city


Solar calculator and quote comparison tool

Compare solar quotes from the top solar companies in New Mexico

How much do solar panels cost in New Mexico

$3.64 per watt

Cash purchased solar system
Before 30% solar tax credit

$4.04 per watt

Financed solar system
Before 30% solar tax credit

15.7¢ cents/kWh

Lease/PPA
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 include the net metering policy, the federal tax credit, and all of the available utility rebates. Also, lots of sunshine means that a solar system in New Mexico will produce a lot of energy. 

The disadvantage of installing solar panels in New Mexico is that there is very little in the way of state incentives. However, the decreasing price of solar makes up for what the state may lack incentive-wise. 

Enter your details to calculate the potential costs and savings you can get from installing solar panels for your home. 

Find local city information


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 Albuquerque area solar panels installed on a south facing 27 degree pitch roof will typically produce:

1,150kWh 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 zipcode below.

 

See how much electricity your solar panels could produce

I want to buy a solar panel kit and install it myself

What rebates, solar tax credits and other solar incentives are available in New Mexico?

Net metering in New Mexico

New Mexico law requires all utilities that are regulated by the Public Regulation Commission to offer net metering to their customers. 

The law outlines two ways in which a utility may offer net metering:

  • A utility may credit or pay for excess energy sent to the grid at the avoided cost rate, which is essentially the cost for a public utility to produce one more unit of power; or
  • A utility can provide a credit that is equal to 1 kilowatt hour (kWh) of energy for each kWh of excess generation sent to the grid. These credits can be carried over from month to month indefinitely. 

Check your electric utility’s website to find out more about their net metering policy. 

 


 

Renewable portfolio standard and RECs

In 2019, New Mexico passed a bill that established a new renewable energy target of having 40% of retail electricity sales come from zero-carbon resources by 2025. Of that target, 20% of the electricity must come from solar. In order for a utility to reach this goal they must obtain renewable energy credits (RECs). 

RECs represent the positive environmental attributes of generating 1 megawatt (MW) of energy from renewable sources. Once you register your system with the state, it will begin producing RECs that you can sell. 

Some utilities offer a performance-based incentive where they will pay you a fixed rate per kWh of energy your system produces in exchange for the RECs your system creates. This provides you with a reliable, standard rate for your RECs and allows your utility to meet their renewable energy target. 

For example, if you are a customer of El Paso Electric, they will pay you $0.02 per kWh of energy your system produces in exchange for your RECs.

Other utility programs, like Xcel Energy's program, are fully subscribed, so they can no longer offer incentives. This could happen to other utilities, so the sooner you sign up, the better!

 


 

Is it better to lease or purchase solar panels in New Mexico?

It can be difficult to decide how to finance your solar system. Various zero-down solar leases and solar power purchase agreement (PPA) products are popular in New Mexico because they minimize upfront costs for installing solar. However, instead of entering into a third party-owned solar lease or PPA, you are likely to see far greater savings over the life of a system if you purchase your solar panels outright, whether it be with cash or through a loan.

You can use the solar savings calculator to see the difference in the overall savings over the life of a system. 

 


 

Property tax exemption

New Mexico offers a property tax exemption when you install a solar system on your home. For the purpose of property tax assessments, residential solar systems will not be treated as an improvement to your property and therefore will not increase the amount that you pay in property taxes. 

New Mexico Solar Calculator

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 monthly 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 monthly solar calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:

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.

 

Unlock live pricing in your state!

 

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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:
Find your local rebates and incentives

Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.