Over the past decade, utilities, companies, and residents around New Mexico have invested in solar power to save money and increase reliance on green energy. The state has invested $2.3 billion in solar energy, and it ranks 18th in the nation for solar energy generation.
New Mexico solar panel cost
The cost of solar panels in New Mexico depends on the size of your solar energy system, its configuration, and the components you choose. Your overall cost will also include labor and local permitting costs. The average residential solar system has a price tag between $15,000 and $25,000, or $3-$5 per watt.
Tax credits and other incentives can help reduce your costs and allow you to recover your initial investment sooner. Between financial incentives and energy savings, the typical break-even period for a residential solar system is between six and nine years.
Why choose New Mexico solar power?
Here are a few good reasons why solar power and installing solar panels on your home might be right for you:
Lower energy costs
A benefit of installing solar panels on your home is that they can significantly reduce your energy costs. Using solar to power your home lowers your electricity bill because you are effectively creating your own energy rather than relying on the power grid. You can also invest in solar batteries to hold excess energy that will power your home when the sun isn’t shining. Installing solar panels also increases the value of your home.
Establish energy independence
When you install residential solar panels, you have the opportunity to achieve energy independence, meaning you aren’t reliant on the traditional energy grid to power your home. With a self-supporting energy system, you aren’t vulnerable to price hikes when energy demand and rates increase. Plus, when you have solar energy, you can continue to power your home during power outages.
Traditional electricity generation emits greenhouse gasses into the air, which contribute to climate change and pollute the air and water. When you install solar panels on your home, you’re able to reduce your home’s environmental footprint and do your part to slow climate change.
New Mexico solar panel incentives or rebates
There’s no doubt that solar panels are a major investment, but there are incentives in place to help reduce your out-of-pocket cost.
First, the federal government offers a 26% solar tax credit for installing renewable energy infrastructure on your home. The tax credit will decrease to 22% in 2023, before disappearing altogether in 2024, unless Congress renews it.
New Mexico also has incentives in place to help you save even more. First, the state has a net metering program to allow customers to earn utility credits for returning excess electricity to the grid. The state also has a property tax exemption, meaning you won’t pay additional property taxes on the increase in your home’s value due to solar panels.
Should I buy or lease my solar panels?
When you’re ready to install solar panels in New Mexico, you’ll have the option to either buy or lease your panels. Buying, or financing, solar panels offers the best long-term savings because it allows you to take advantage of tax credits and other incentives.
Leasing solar panels can still be the right option for some people. Leasing makes solar power more accessible to those who can’t afford to buy or who have another circumstance that prevents them from buying. Other options include entering a solar power purchase agreement (PPA) or joining a community solar program, which allows consumers to take advantage of solar power without installing panels or incurring the large upfront cost of buying or leasing.
The history of solar power in New Mexico
New Mexico’s first investments in solar power date back to the late 1970s. The state implemented even more solar policies in the early 2000s, including its Renewable Portfolio Standard (RPS) program, net metering, and solar tax credits.
Thanks to the state’s continued investment in solar power, New Mexico ranks 18th in the nation for solar energy generation. Solar power accounts for over six percent of the state’s electricity — that’s enough to power more than 285,000 homes. While utility solar installations have been growing for years, residential systems have become more popular in recent years.
Important solar installation factors to consider
Solar power can be a good investment for many homeowners, but according to the Department of Energy, you should consider these factors before you install panels on your home:
- The state, angle, and condition of your roof. Solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees. Panels are best for roofs in good condition that won’t need to be replaced soon.
- How sunny your area is. Solar panels rely on sunshine to create energy for your home. Certain regions get more sunshine than others, making them more effective areas for solar panels.
- HOA rules. Some homeowners’ or neighborhood associations have restrictions around solar panels or may require approval before installation. Check with your HOA before installing your panels.
Solar power FAQs
How much would solar cost in New Mexico?
Residential solar systems have an average price tag ranging from $15,000 to $25,000. The actual price depends on a variety of factors, and your ultimate out-of-pocket cost is likely to be lower if you take advantage of the federal solar tax credit.
Is solar power a good investment in New Mexico?
Generally speaking, solar power is a great investment in New Mexico because the state gets lots of sunshine annually. Whether solar power is a good investment for your specific home depends on several factors, including your location, the weather patterns near you, and your energy usage habits.
How much could I save by investing in solar?
The average electricity bill in New Mexico is $82.78. Therefore, if you replace all of your traditional electricity with solar power, you could save about $1,000 per year. That doesn’t account for the money you can get through net metering or in the increase your home’s value.
How does solar power help the environment?
Traditional energy generation emits greenhouse gasses into the air, which contributes to climate change and pollutes the air and water. Solar power is a renewable resource, so it doesn’t have the same environmental impact. By using solar, you can reduce the amount of carbon entering the atmosphere and your home’s carbon footprint.