New Mexico Solar Incentives: Everything You Need to Know to Save Big
With solar incentive new mexico programs, you can reduce your upfront costs If you're considering solar energy for your homeThis blog will explore the various incentives
available to residents and businesses, helping you save significantly on solar installations.
Why Go Solar in New Mexico? New Mexico ranks among the top states for solar energy potential, with an average electricity price of 14.03 cents/kWh. By installing solar panels, homeowners can save up to $1,543 annually by generating approximately 11,000 kWh of solar energy
each year1. The combination of state and federal incentives makes going solar a financially wise decision.
Key Solar Incentives in New Mexico 1. Residential Clean Energy Credit ● This federal tax credit allows homeowners to deduct 30% of the installation costs from their federal taxes. It covers all expenses related to the solar system, including labor and permits. Note that this incentive is only applicable if you purchase your system outright or through a solar loan, not if you lease it1. 2. 3. Solar Market Development Tax Credit (SMDTC) ● Homeowners can receive a tax credit worth up to $6,000, which is equal to 10% of the total costs for labor, materials, and equipment for the solar installation. Approval from the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) is necessary to qualify for this credit. 4. Sustainable Building Tax Credit (SBTC) ● If your home meets U.S. Green Building Council standards, you can receive additional tax credits based on your certification level. However, this cannot be claimed alongside the SMDTC1. 5. New Mexico Solar Property Tax Exemption ● This incentive ensures that any increase in property value due to solar installations will not result in higher property taxes. This means homeowners can enjoy the benefits of increased home value without additional tax burdens. 6. Net Metering ● Under New Mexico's net metering policy, homeowners can receive credits for excess energy produced by their solar systems. These credits offset future electricity bills, making it easier for homeowners to manage their energy costs1.
Commercial Solar Solutions For businesses considering solar energy, SolarSME offers tailored solutions that maximize savings and efficiency: ● Types of Systems: ● On-Grid Solar: Reduces daytime electricity costs. ● Off-Grid Solar: Provides complete energy independence with storage options.
● Hybrid Systems: Combines both on-grid and off-grid capabilities. ● Financial Incentives: ● Businesses can also take advantage of the federal solar investment tax credit (ITC), allowing them to claim up to 26% of installation costs as a tax credit.
Cost of Solar Panels in New Mexico The cost of installing solar panels varies widely based on several factors, including system size and complexity. On average, commercial installations can range from $100,000 to $2 million depending on specific project needs2. However, with available incentives and rebates, businesses often see a return on investment within 3 to 7 years.
Conclusion New Mexico's commitment to renewable energy is evident through its comprehensive array of solar incentives designed for both residential and commercial properties. By leveraging these programs, residents and business owners can significantly reduce their upfront costs and enjoy long-term savings on energy bills. If you're ready to explore your options for solar energy in New Mexico, consider partnering with a local expert like SolarSME who can guide you through the process and help you maximize your savings. For more information about commercial solar solutions and how they can benefit your business or home in New Mexico, visit SolarSME for detailed insights and personalized consultation options.
