Solar Panels in New Mexico | 2022 Cost and Incentives | SaveOnEnergy®

New Mexico Solar Panels: Pricing and Incentives

How much do solar panels cost in New Mexico?

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Solar power in New Mexico

The past decade has been a time for growth in the solar industry across the nation, and New Mexico is no exception. Like many states, New Mexico has seen an increase in solar installations in recent years. Solar power in New Mexico has become popular enough that the state ranks in the top half of all states for solar power generation.

If you live in New Mexico, you could save money on energy by installing solar panels on your home. Keep reading to learn some of the costs and benefits of solar panels and whether they’re right for your home.

New Mexico solar panel cost

The cost of solar panels in New Mexico depends on several factors, including the size, configuration, and components of your system. Another factor includes the local labor and permitting costs in your area. According to Lawrence Berkeley National Laboratory’s Tracking the Sun report, in New Mexico solar panel system price per watt ranges between $3.53 and $4.91 per watt, with system sizes ranging from 3.6-kW to 8.4-kW, resulting in a system cost range between $12,804 and $41,263. The New Mexico median solar panel system price per watt is $4.14, and median system size is 5.6-kW, resulting in a $23,080 median system cost.

Remember that while solar panels are a significant investment, they also provide savings in the long run. Between your energy savings and the financial incentives available, the payback period for solar panels is between six and nine years.

Price Per Watt System Size (kW) Cost
High $4.91 8.4 kW $41,263
Median $4.14 5.6 kW $23,080
Low $3.53 3.6 kW $12,804

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New Mexico solar incentives or rebates

To make solar panels more affordable for homeowners, the federal government and many state governments have implemented policies that include tax credits, net metering, and more.

First, the federal government offers a 26% tax credit on your solar panel purchase. This credit can save you thousands on your solar panels, but the credit will be reduced to 22% in 2023. It will disappear in 2024 if Congress doesn’t renew it. It’s important to invest in solar panels soon in order to benefit from the federal tax credit.

New Mexico also has some initiatives of its own to help you save. First, the state offers a property tax exemption, meaning your property tax bill won’t increase with your solar panel installation. The state also offers a solar tax credit when you purchase it — it’s worth $6,000 or 10% of your purchase, whichever is lower. Other initiatives include the state’s net metering policy, a sustainable building tax credit, and renewable energy certificates.

Why choose New Mexico solar power?

Choosing solar power in New Mexico has added benefits such as, including reducing your energy costs, establishing energy independence, and reducing your home’s carbon footprint.

Lower energy costs 

One of the primary benefits of solar panels is they can reduce your energy costs. First, you’ll save money on your monthly energy bills by powering your home primarily with solar energy instead of the traditional electricity grid. Your energy savings could amount to tens of thousands of dollars over the life of your solar panels. Solar panels can also increase your home’s value, which could be additional money in your pocket.

Establish energy independence

Another benefit to installing solar panels on your home is the opportunity to reach energy independence, meaning you’re not fully reliant on the traditional electricity grid to power your home. It can also keep your home running when the power grid is down if you have a solar battery to store your excess energy.

Go green

Traditional electricity generation produces pollution and contributes to climate change. However, solar energy generation doesn’t have this same harmful effect because solar power is a renewable energy source.

Want to learn more about solar energy

Here at SaveOnEnergy, we’re your guide to everything solar energy, from checking your availability and discussing your home’s needs to getting you customized options to go solar with ease. Want to talk with a human? Call our dedicated solar advisors to discuss your solar energy options. Give us a call at 866-395-8433.

Should I buy or lease my solar panels?

Buying or leasing solar panels each have their own advantages and disadvantages. Buying solar panels is more cost-effective over the long run. Not only does it provide more energy savings, but it also allows you to take advantage of the tax credits, which you don’t qualify for when you lease your panels. Additionally, buying solar panels for your home can increase your home’s resale value by $15,000 on average.

While leasing solar panels isn’t quite as cost-effective, it definitely still has its benefits. First, leasing solar panels doesn’t require the same upfront cost as buying. Additionally, leasing might make more sense for those who rent their homes instead of owning them. However, if you enter into a lease or PPA, you can’t take advantage of the federal tax credit.

Another option that’s available in some areas is a community solar project. In this type of program, all participants share the solar power that’s created from the project. Participants don’t have to pay the large upfront cost of buying panels, nor do they have to install them on their homes.

The history of solar power in New Mexico

New Mexico was an early adopter of solar power. The state began implementing solar policies in the late 1970s and early 1980s and has implemented several other initiatives since then. Some of the state’s most popular solar policies have included solar easements and rights laws, renewable portfolio standards, net metering, tax credits, and more.

Today, New Mexico ranks 19th in the nation for solar energy generation. The state has seen an increase in solar installations in recent years, especially by utility companies. More than 6% of the state’s electricity comes from solar power, enough to power more than 320,000 homes.

Important solar factors to consider

Solar power can be an excellent investment, especially in a sunny state like New Mexico. However, there are a few things to consider before you install solar panels on your home.

  • According to the Department of Energy, solar panels are most effective on roofs in good condition and those that are south-facing with slopes between 15 and 40 degrees.
  • Homes that get lots of sunlight will get the most use out of solar panels. Consider your local weather patterns and whether anything obstructs the sun.
  • If you have a homeowners association, you may need to get approval to install solar panels or may be limited on the size of the system you can install.

Solar power FAQs

How much would solar cost in New Mexico? Expand / Collapse Toggle

The cost of solar panels can vary widely based on local factors and your particular system, but you can expect to pay between $15,000 and $25,000.

Is solar power a good investment in New Mexico? Expand / Collapse Toggle

Solar power can help to reduce your energy costs and increase your home’s value, making it a great investment. However, whether it’s a good investment for you depends on the amount of sunlight your home gets and your energy usage habits.

How much could I save by investing in solar? Expand / Collapse Toggle

The average resident pays around $100 per month for electricity. With a solar system, New Mexico residents can save up to $1,046 per year.

Where can I find a good solar panel installer in New Mexico? Expand / Collapse Toggle

If you’re in the market for solar panels, SaveOnEnergy can help. Just enter your information in the form on the screen and we’ll connect you with a trusted solar installer in your area.

How does solar power help the environment? Expand / Collapse Toggle

Unlike traditional electricity generation, solar power doesn’t emit carbon dioxide into the atmosphere. It’s also a renewable resource.

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