New Mexico Solar Incentives: Reduce Cost of Solar Panels NM, Tax Credits

Georgette Kilgore headshot, wearing 8 Billion Trees shirt with forest in the background.Written by Georgette Kilgore

Solar Panels | March 15, 2024

Woman with a solar panel for home installation grabbing money from New Mexico solar incentives that reduce the cost of solar panels in New Mexico using solar tax credit, rebates, and solar tax exemptions in New Mexico.

New Mexico has been called the Land of Enchantment for almost 120 years, and while that saying is a reference to the state’s natural landscapes, thanks to New Mexico solar incentives, residents and businesses can reduce the cost of solar panels in New Mexico.1

The state gained that nickname in the early 1900s, but New Mexico residents who install solar panel energy systems on their properties could have been taking advantage of federal,14 state, and local solar energy tax incentives for the past decade.15

Due to the state’s sunny weather and recent legislation, the cost of solar panels in New Mexico could be more affordable than you realize.

If you live in New Mexico, the financially beneficial solar tax incentives make switching to greener energy easy. New Mexico is one of the sunniest states in the country.

This fact means that you could be able to offset your initial startup costs by significant financial margins.

This guide outlines the various New Mexico solar incentives that can be utilized to reduce the cost of solar panels in New Mexico.

New Mexico Solar Incentives Basics

Investing in solar energy systems is an intensely serious financial undertaking, which no one denies.

But you could potentially save up to 30% or more on the cost of solar panels in New Mexico after taking advantage of every possible solar tax incentive.

Residential houses showing one of the roofs with solar panels mounted on a racking.

(Image: Marufish23)

And that is the main problem when it comes to solar energy tax incentives – many people don’t know they exist or realize the number of tax incentives that they might qualify for.

For example, as a New Mexico resident, you might be able to install a modest 6 kW solar panel energy system on your residential property for $12,300 after taking advantage of the federal solar tax credit.2

You could also potentially offset your annual energy bills by over $1,200. And you might even recoup your initial solar panel system investment entirely within a decade.

Even though these solar tax incentives are one-time and first come, first served opportunities, you can take advantage of as many as you can find and qualify for.

Keep reading this comprehensive guide to learn all about the various New Mexico solar incentives that you may be unaware you qualify for.

To start with, here are a few of the benefits of investing in solar panel energy systems in New Mexico.

New Mexico Solar Incentives and Renewable Energy Consumption (Take Advantage of These Benefits)

The New Mexico government has ratified numerous clean energy laws and initiatives in recent years.

They were legislatively designed to help mitigate the destructive long-term consequences of climate change, incrementally and ambitiously start the state on a path to 100% clean energy in the future, and enable every state resident to transition to solar energy and save money on energy costs.

Pie chart showing New Mexico renewable energy consumption including New Mexico wind energy, biomass energy, geothermal energy, hydroelectric energy and solar energy in the state of New Mexico for 2022.

The New Mexico government has pledged to make state-wide energy generation 100% renewable and fossil fuel-free by 2045.3

Legislative actions are being put into motion now, like extending many federal and local solar tax incentives, to make these ambitious plans a reality.

These tax incentives have annual caps, are first come, first served, and won’t be available forever.

Before reading about all of the solar tax incentives below, here are some persuasive reasons why you, as a New Mexico resident, should take advantage of them.

Solar Albuquerque Potential (Bountiful Solar Tax Opportunities Per Capita)

New Mexico counts over 2.1 million people as state residents.4 And over half of those residents live in Albuquerque.

However, the state barely has 350,000 solar panels installed in residential homes.5 For context, over 10.5 million California residents have solar panels installed in their homes.

The Solar Market Development Tax Credit, the New Mexico state version of the federal tax credit, allocated a budget cap of $12 million for the 2023 tax year.6

It offers a 10% solar tax incentive for residents who install solar energy systems on their properties up to $6,000. (More on this and other solar tax incentives below.)

Still, only 9,000 New Mexico residents have taken advantage of this state solar tax incentive since 2020. And the average tax credit for those who availed themselves of this opportunity never amounted to more than $3,000.

And this is just one of numerous such solar tax credits that you may qualify for – just for living in New Mexico.

Get in on the action now while the getting is good – once that previously mentioned 350,000 estimates of New Mexicans with solar panels installed start rapidly increasing, you may not be able to apply when you want.

Sunlight: Peak Sun Hours for New Mexico

To optimize solar energy generation to the fullest, a solar panel contractor must install solar panels on the roof and in a south-facing position. Roofs with south-facing solar panels receive the most sunlight exposure as the sun traverses the sky in the daytime.

It is also important to make sure any such rooftop solar panel installations are from sunlight obstructions like trees or anything that would cause shading.

Most American states are lucky to experience 150 to 200 sunny days annually. So, it is important to invest in solar panels somewhere where sunlight is plentiful.

Map of the state of New Mexico with each county colored to show the daily peak sun hours in each New Mexico county ranging from 5.23 to 5.96 daily hours of sunlight.

New Mexico experiences 293 days of sunshine annually.7 Some areas in southern New Mexico experience almost 360 days of sunshine annually.

The West and Southwestern United States are probably the optimal locations in the county to install solar panels on residential properties relative to maximum sunlight exposure.

Solar Panels New Mexico Energy Offset Costs

Solar energy offset is a percentage or estimate that measures the annual difference between how much electricity is generated by a solar panel energy system versus how much electricity is actually used by your home.

Depending on how much electricity your home uses, or if you live in an area with long periods of shady or cloudy weather, you may be able to generate more electricity than your home actually uses.

Such excess energy can be stored in solar battery systems or sold back to utility companies as credits against future bills.

If you live in New Mexico, where residents usually use less electricity per capita than the national average, it’s a great persuasive and valuable analysis point of view for transitioning to residential solar energy.

In other words, New Mexico residents who embrace solar panel energy systems can not only save significantly on the startup cost of solar panels in New Mexico with solar tax incentives, they can also self-generate their own electricity and pay for the system within a few years.

The average American household uses 886 kWh of electricity monthly and pays $121 monthly for their energy bills.16 The typical New Mexico household uses 646 kWh of energy monthly and $87 monthly.

So, that means the typical New Mexican household spends $1,044 annually and $10,440 within a decade on electricity.

As previously mentioned, a New Mexico resident who invested in a 6 kW solar panel energy system via a federal solar tax credit only would only pay $12,300 to $13,000 for it.

The solar panel energy system would generate 669 kWh of electricity monthly and save you $1,200 annually on your energy bills. The solar panel energy system you install could save you $12,000 on your energy bills and pay for itself within a decade.

If you generate more electricity than you use, you can also sell it back to a utility company via net metering.

When you also consider that the cost of living, supply chain inflation, and utility billing rates always incrementally increase over time, installing solar panel energy systems on your residential property can be a prudent investment decision to make sooner than later.

Additionally, solar panel efficiency is about 20% – in other words,17 about 20% of the sunlight energy captured by a solar panel is converted into electricity. Some modern solar panels can achieve 23% efficiency.

In a state like New Mexico, which is sunny most of the year, you will never want energy.

Cost of Solar Panels in New Mexico (Improving Home Resale Value Potential)

You should only consider installing solar panel energy systems in your residence if you plan on living in it for the foreseeable future. The best way to enjoy the multitude of solar tax incentives available as a New Mexico resident is to own your property and solar panels and live in your residence for a decade or more.

Still, if you decide that you want to sell your home after installing solar panels, there is a profitable market for that.

The average home with a solar panel energy installation will typically sell 20% faster than a home without one.8 While installing a solar panel energy system shouldn’t devalue your home, it should increase its value incrementally.

For every dollar that you save on the energy bills that are financially offset by the electricity, the value of your home should correspondingly increase by $20. Eco-friendly homes with solar panel installations will generally for 4% higher on the real estate market than homes that don’t have them.

Now, here is an extensive list of the New Mexico solar tax incentives that are available to you followed by more helpful information.

Federal, State, and Local New Mexico Solar Incentives

This is a comprehensive list of all the available solar tax credits available for New Mexico residents.

Barring some exacting qualifications for homeowners who live in particular counties or municipalities, as long as you own your home and solar panel energy system, you should be able to qualify for all of these New Mexico solar incentives.

A residential house showing a solar panel installation on the roof with a tree with no leaves and cloudy sky in the background.

(Image: Michael Coghlan24)

To cover all of your bases, you should consult with a certified public accountant or similar tax specialist to help you find every tax credit that applies to you as well as apply for them correctly.

Federal Solar Tax Credit (Best Option To Reduce the Cost of Solar Panels in New Mexico)

The federal solar tax credit is also known as the solar investment tax credit or ITC. The official name of this solar tax incentive is the Residential Clean Energy Credit.18

While it gives eco-friendly homeowners a tax credit, it is really an incentive for private homeowners, the private sector, and businesses to invest in renewable energy.

The federal solar tax credit allows homeowners to make a one-time claim of 30% on their federal income taxes against the startup costs of installing a photovoltaic solar panel energy system. If your tax obligation is less than the tax credit, then the remaining amount will roll over for five years.

It’s important to note that the federal solar tax credit is solely a tax credit and clean energy conversion incentive – it is not a tax refund or deduction. This federal solar tax credit will incrementally reduce your tax obligation for the year you file it.\

Depending on the size of the solar panel energy system that you install on your roof or property, the cost of solar panels in New Mexico can range anywhere between $12,000 to $20,000. The maximum cap on this tax credit is $6,000.

So, if you pay $20,000 to have solar panels installed on your roof, you will end up only paying $14,000 after taking advantage of this tax credit.

Additionally, as long as you home your home and solar panels and file the same year you move in and turn your system on, then you don’t even have to pay the 30% tax credit out of your pocket.9

In some circumstances, depending on how much the installation cost, the tax year it was activated, and the number of available tax credits that you use, your maximum tax savings could be as much as $7,500.10

If you are a new homeowner who just bought an eco-friendly home then you can claim the credit when you move in and turn on the system – but only in a succeeding tax year after the previous homeowner claimed the credit.

The federal solar tax credit is a tax credit that is available to any American homeowner nationwide.

You can also apply if you are a cooperative housing corporation member or own a condo. You must however outright own your solar panel energy system and residence or property to qualify for the tax credit.

Additionally, while you can add state, local, and municipal tax credits to your federal solar tax credit, the federal credit could decrease from 30%.

Such credit reductions will depend on the types of other solar tax credits you use, your current financial standing and tax bracket, and other factors.

You can’t claim the federal solar tax credit if you are renting or leasing solar panel energy systems on your property.

You must also claim the credit the year you turn on the solar panel energy system.

For example, if you have solar panels installed this year but experience delays with permits, inspections, or acquiring authorization like permission to operate or PTO clearance from a local utility this tax year, then you may have to claim the credit the following tax year.

What Solar Panel Installation Costs Are Covered Under the Federal Solar Tax Credit?

This federal tax credit cannot be used to cover the costs of any ancillary structural support systems that must be built to support a solar panel energy system.

Barring that condition, here is what this federal tax credit covers:

  • Photovoltaic solar panels and cells
  • Solar batteries and related technologies that are charged exclusively by your solar panel energy system.
  • Mounting equipment
  • Inverters
  • Electrical wiring
  • Labor and installation costs
  • Inspection and permitting fees
  • Contractor and developer fees
  • Biomass fuel generation
  • Small wind turbines
  • Geothermal heating pumps
  • Solar energy water heaters

New Mexico state sales tax is not covered or exempted by the federal solar tax credit.

New Mexico technically does not have a state sales tax; it is called a gross receipts tax and is about 5.1% in 2023.11

Qualifications for the Federal Solar Tax Credit

While the process to apply for a federal solar tax credit is simple and straightforward, not everyone will automatically qualify. There are several conditions that you must meet to qualify for the federal solar tax credit.

You must own a residence or property in the United States where the solar panel energy system will be installed and your residence does not necessarily need to be a house for you to qualify for the solar tax credit either.

Your residence can be any of the following:

  • House
  • Mobile home or recreational vehicle
  • Condo
  • Prefabricated manufactured home
  • Houseboat
  • Cooperative apartment

If you want to claim wind-generating, solar, or geothermal projects for a solar tax credit, then they can be installed on properties that are not necessarily on your primary residence.

However, you must own the properties that such projects would be installed on.

You cannot claim solar tax credits for solar panel energy systems that you rent or lease on your property. Whoever owns the solar panel systems on your property that you’re renting from would be entitled to the federal solar tax credit, not you.

The solar tax credit can only be applied to solar panel installation projects that were installed in 2017 or later. If you installed your solar panel system prior to 2017, then you’re out of luck.

It is also important to remember that you can only file for this claim one time only.

Federal Solar Tax Credit Application Process

Keep detailed records of the installation process, costs, permitting, and inspection fees as well.

You should also take photographs of the entire project and how it connects to your residence or property.

On a sunny day, a solar panel technician installs a solar panel system on the roof of a residential house.

(Image: Jon Callas25)

Work closely with your solar panel contractor to keep accurate records of the installation process.

Depending on your local tax laws, you may be able to file the same year you activate your solar panel energy system or the following tax year. Use IRS Form 5695 to start the application process.19

For your own legal protection and to ensure filing the application properly, hire a certified public accountant to help you file.

Federal Solar Tax Credit Deadline

The amount of tax credit savings that can qualify for via the federal solar tax credit depends on the year that you installed the solar panel energy system on your residence or property.

If you installed your system between 2017 and 2019, then your tax credit savings is 30%. The tax credit savings falls to 26% if you got your solar panel energy system installed between 2020 and 2021.

However the American Congress legislatively increased the federal solar tax credit back to 30% in 2022 and extended it all the way to 2032. As long as you file for this one-time solar tax credit before December 31, 2032, your tax savings will be 30%

The tax savings fall to 26% in 2033. Then, it falls to 22% in 2034.

The federal solar tax credit initiative will end in 2035 unless the American Congress legislates to extend it again before then.

New Mexico Gross Receipts Tax Exemption for Renewable Energy

As previously mentioned, New Mexico technically does not have a state sales tax; instead, the state government has something called a gross receipts tax which is often mistakenly called the state sales tax.

And there is actually a semi-exemption on the gross receipts tax when you buy a solar panel energy system. You don’t need to claim it on a solar tax credit application.

However, it’s a one-time exemption that is automatically applied whenever you buy a solar panel system.

Your solar panel contractor should automatically deduct the state’s gross receipts tax by $1,000 on average for a solar panel installation.

Solar Market Development Tax Credit (SMDTC)

The Solar Market Development Tax Credit, also known as the SMDTC,20 is a state solar tax credit incentive overseen by New Mexico Energy, Minerals, and Natural Resources Department.

This New Mexico solar tax credit incentive is just the state-level version of the federal solar tax credit. The New Mexico state government will give you a 10% tax credit against your state income tax liability.

It’s essentially a state tax incentive, not a deduction, with a tax savings maximum amount of $6,000.

You should take advantage of this state solar tax credit while you can because there is a $12 million program budget cap annually.

The average New Mexican household that claimed this solar tax incentive claimed up to $3,000 in tax savings per installation.

The SMDTC incentive will be available to New Mexico residents until 2032. This state solar tax credit can be added to the federal solar tax incentive for added savings.

So, if your solar panel installation costs $20,000, the 30% federal solar tax credit, with a maximum savings of $6,000, brings that cost down to $14,000.

After applying the SMDTC New Mexico state 10% savings incentive, that $14,000 solar installation startup cost can be further reduced to $12,600.

Sustainable Building Tax Credit (SBTC)

In 2021, New Mexico became the first state in the country to financially incentivize its state residents and businesses to comply with Leadership in Energy and Environmental Design Zero certification standard (also known as LEED.)12

These are eco-friendly tax credits and incentivization for New Mexico residents who build homes with solar installation and appliances and features that make it fully electric, carbon neutral, produce little waste, and so on.

The state government will give you solar tax credit that corresponds to the level of eco-friendliness and energy sustainability the house possesses. So, if you install solar panels, you qualify for the tax credit.

To get the SBTC, you need to get a U.S. Green Building Council representative to inspect your home and solar panel installation system and issue LEED Zero certifications as warranted. This is especially true if the home is ENERGY STAR compliant and built to be eco-friendly and self-sustaining.

Residential homes with solar panels installed could qualify for tax credits of $5 to $6.50 per square foot up to a maximum of 2,000 square feet. The LEED Zero certifications and SBTC tax credits can be filed against your state income tax.

Net Metering New Mexico

Net metering is an energy crediting or payment arrangement system that can be established between a utility company and a homeowner. In the state of New Mexico, all utility companies must provide net metering for homeowners with solar panel energy systems.

However, it is up to you to choose a utility company with a net metering policy that suits your solar energy generation needs.

When you agree to a net metering arrangement with a utility company of your choice, the company will send a contractor to your home to install a smart meter.

The meter will track how much energy your solar panel energy system will generate as well as how much energy your household uses.

If your solar panel energy system generates more energy than your household consumes, then you can sell the excess energy back to the utility company.

The excess solar energy generated by your system can be forwarded as a credit toward your future energy bills. The energy credits must be based on the same pricing standards the utility company charges you.

The New Mexican utility company’s net metering policies vary so you should shop around and compare policies.

But typically speaking, if your solar panel energy system generates more energy than it uses and is less than 10 kW, they can pay you in cash according to their own avoided cost pricing metrics.

Avoided cost is a fancy financial market term meaning that the utility company can pay you for your excess solar energy based on their own wholesale pricing standards, not any general energy market prices.

In other words, the utility company will set the rate they will buy your excess solar energy and won’t use any energy industry retail rates.

A utility company or a licensed and professional inspector and energy meter installer can start the net metering application process for you.

Cost of Solar Panels in New Mexico (Property Tax Exemption for Solar Panels)

New Mexico is one state with arguably one of the lowest property tax obligations in the country.

In 2023, the New Mexico state property tax was under 0.80% and well under the 1% threshold.

A residential house roof showing an on-going solar panel installation with a ladder, solar panel racking, and solar panels on the roof.

(Image: jonsowman26)

As previously mentioned, installing solar panel energy systems on your residence or property will incrementally increase its market value, sometimes by as much as 4%.

New Mexico exempts residents who install solar panel energy systems and corresponding equipment from their property tax obligations.

The point is to protect homeowners from a higher property tax rate due to the incremental increase in home value. Such solar panel energy systems can potentially last for 20 years after all.

As long as you install solar panels and accompanying equipment on your residence or property, you don’t have to apply for this eco-friendly New Mexico property tax exemption. Just like the gross receipts exemption, the property tax will be automatically excluded from the final installation price.

While 0.80% percent may not seem like a lot of money, it adds up to more tax savings if you take advantage of multiple solar tax credits. Make sure to double-check all of your final installation invoices.

Solar Panel Disposal Sites vs the Cost of Solar Panels in New Mexico

Even though the country and numerous states like New Mexico are ambitiously heading towards a renewable energy future, no one has definitively solved the issue of proper solar panel disposal yet.21

Modern solar panels are constructed with materials like glass, aluminum, copper wires, and plastic. So, in the event that you lose some solar panel modules over the year, you can dispose of them at a solar panel recycling centers.

New Mexico Solar Energy (Options For Disconnecting From the Grid)

If you don’t want to deal with the hassle of paying utility companies, then you can consider completely disconnecting from the power grid.

It’s a lifestyle called off-grid solar panel living. Over 250,000 Americans are living completely off-grid and powering their homes with solar energy.13 Some experts even consider 250,000 to be a conservative estimate.

However, off-grid solar panel living could end up being more expensive to maintain as a lifestyle than being connected to local and national energy grids.

Luckily, New Mexico enjoys more sunny days than most states. So, generating solar energy for your needs probably won’t be a problem.

But you won’t have much room for error when it comes to household use energy use calculations.

Barring any blackouts, you will always have the local energy grid as a backup. You may have to invest in even more solar panel models than you need to ensure you have adequate power to save in your solar batteries.

Then, you have to develop a daily minimalist household energy use budget and stick to it to ensure you never run out of energy.

You may have to hire solar panel contractors from time to time to perform maintenance, inspections, and repairs on your equipment from time to time. Those costs are going to add up over the years.

If you need to pay even more to buy more solar panel equipment to maintain an off-grid lifestyle, then your tax credit savings potential could become negligible.

The average New Mexico household pays comparatively much less than the national average for monthly electricity bills. It does not make much sense to potentially pay more for energy costs by living off-grid.

It would be cheaper and less stressful relative to maintenance needs to stay on the grid and convert to solar.

Solar Panel Cost Calculator New Mexico

As mentioned, your initial costs to invest in solar panels can range between $12,300 to $19,000.

And due to the fact that the typical New Mexico household pays less than the nationwide standard for energy bills, you should take ample time to consider if solar panels are right for you.

Graphics of cost of solar panel installation in New Mexico showing technicians installing a solar panel system on a house atop a cutout map of the state of New Mexico and the average cost at the bottom.

Here are some cost calculator factors to consider before dropping big bucks on a solar panel installation.

Net Metering Payout Policies (New Mexico Solar Incentives)

Since most New Mexican households have an $87 monthly energy bill, you may often end up with excess solar energy to credit or sell to a utility company. However, the utility company decides the rate for which they will buy your excess solar energy – and every utility company has a different rate.

You are probably not going to make a fortune through selling solar energy via net metering, so it shouldn’t be your driving impetus to invest in solar.

Investment Breakeven Period

If you are a New Mexico resident, then you could potentially make back your investment in under a decade but not more than 15 years. Considering the plethora of solar tax incentives available to you, the solar panel energy system you install will more than pay for itself within a few years.

If a decade or a little more is too long to wait for your ideal ROI point, then investing in solar may not be for you.

Age of Your Home and Roof

The last thing you should be considering if you have an aging roof and house is a solar panel installation.

The typical cost to repair a roof in New Mexico could cost a few hundred or thousands of dollars.

Replacing an entire roof can end up costing you tens of thousands of dollars, and no solar-based tax exists to ease the financial burden of paying for such repairs.

Get your house inspected if it is old before even considering solar panel installation.

What Are the Worst States for Solar Energy?

Kansas and North Dakota are the worst states for solar energy. These states do not have any significant renewable energy sources or infrastructure even partially powering their cities.

New Mexico is sunny most of the year and has legislation that aggressively encourages its residents to invest in solar energy and numerous solar tax incentives to offsets costs.

Are the Federal Energy Credits Refundable?

No, any federal solar tax credit that you qualify for cannot be more than what you owe in taxes. For example, if your federal solar tax credit is for several thousand dollars and results in a $0 tax bill for you, the IRS is not going to send you a big check corresponding to the difference.

For example, if you owe $6,000 in taxes and get a $6,300 federal solar tax credit, then your tax obligation would fall to $0. Still, the IRS is not going to cut you a check for $300.

You will receive a $300 tax credit for your federal income tax liability that will roll over for the succeeding tax year.

Free Solar Panels New Mexico? Solar Farms in New Mexico

Nothing is free in life. If you encounter advertisements for free solar panels in New Mexico, then you should think a few times before taking up the offer.

New Mexico No Cost Solar Program

Some utility companies, solar energy companies, and private contractors and installers advertise services like installing free solar panels on residential properties.

Map showing locations of solar plants in New Mexico using yellow markers and New Mexico solar panels with a US cut out showing the location of the state of New Mexico.

Technically, you may be able to get solar panels installed on your property for free or at a very low cost. Such offers are usually bait to get you to sign a rental or leasing agreement or to sign up for a PPA.

A power purchasing agreement allows a company to sell you the energy generated on your free solar panels according to their own rates or a company might have you sign a lease a pay a monthly fee to pay back the loan as well as for the energy generated.

However, you won’t own the solar panels so you won’t be eligible for any New Mexico solar incentives. You may have to pay exorbitant termination fees if you break the lease or rental contract.

And you may never know how much energy is being generated on the free solar panels owned by someone else on your property.

Learn More About Solar Energy

Why are solar panels so expensive? The components, installation and labor, permitting and inspections, and wiring to the local grid are expensive costs.

Does solar increase home value? Yes, but only incrementally.

How does the solar tax credit work if I don’t owe taxes? You Get a tax credit that rolls over to succeeding tax years when you will have to pay taxes.

What is the carbon footprint solar panel create? None while the panel is operating, however, the carbon footprint of the mining, manufacturing and disposal can be significant.

Understanding how New Mexico solar incentives work is the first step in reduce the cost of solar panels in New Mexico and moving to cleaner electricity.

Frequently Asked Questions About New Mexico Solar Incentives

Why Is It Called Solar City New Mexico?

New Mexico has almost 300 days of sunny weather exposure. And the state is demand for solar panel installations.

How Much Are Solar Panels in New Mexico?

If you take advantage of the federal solar tax credit, the typical installation cost could be as low as $12,300.

What Factors Dictate Solar Panel Installation Cost New Mexico?

Such factors include the overall cost of the solar panel system, the number of New Mexico, federal, and local solar incentives you qualify for, and desired breakeven cost timeline.

Are Solar New Mexico Tax Incentives Worth It?

It depends on your energy needs. Since New Mexico energy bills are usually low, you should consider lowering your carbon footprint or fully generating your own home energy as persuasive factors to convert to solar.

Are There State Government New Mexico Solar Rebates?

The New Mexico state government does not offer any solar energy rebates.

Can New Homeowners Claim a New Mexico Solar Tax Credit on a Home They Bought With Solar Panels Already Installed?

Yes, if you bought an eco-friendly in New Mexico that came with solar panels installed by the previous owner, then you should be able to still claim solar tax credits as the new homeowner.

However, unless the previous owner already took advantage of the solar tax credits in the same year you want to move in,22 then you may want to wait until the next tax year to finalize the home sale.

Are Solar Rebates From the Government Available?

New Mexico does not offer solar rebates in 2023.

When It Comes to Solar Panels for Home in New Mexico, Is It Possible To Generate 100% Solar Energy To Power the Home?

Yes, but it could take years to accomplish this feat.

Read More About New Mexico Solar Incentives


References

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10Rosen, A. (2023, May 26). Solar Tax Credit: What It Is and How It Works In 2023. Nerd Wallet. Retrieved June 11, 2023, from <https://www.nerdwallet.com/article/taxes/solar-tax-credit>

11Tax Foundation. (2023). Taxes In New Mexico – New Mexico Tax Rates, Collections, and Burdens. Tax Foundation. Retrieved June 11, 2023, from <https://taxfoundation.org/state/new-mexico/>

12Gunby, J. (2021, April 13). New Mexico becomes the first state to incentivize LEED Zero. USGBC. Retrieved June 11, 2023, from <https://www.usgbc.org/articles/new-mexico-becomes-first-state-incentivize-leed-zero>

13Nesbit, J. (2023, May 25). The Guide to Off-Grid Homes. U.S. News and World Report. Retrieved June 11, 2023, from <https://realestate.usnews.com/real-estate/articles/the-guide-to-off-grid-homes>

14Energy Star. (2022, December 30). Solar Energy Systems Tax Credit. Energy Star. Retrieved June 11, 2023, from <https://www.energystar.gov/about/federal_tax_credits/solar_energy_systems>

15Great Seal of the State of New Mexico. (2023). Legislation. Great Seal of the State of New Mexico. Retrieved June 11, 2023, from <https://www.climateaction.nm.gov/legislation/>

16U.S. Energy Information Administration. (2021). 2021 Average Monthly Bill- Residential. EIA. Retrieved June 11, 2023, from <https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf>

17Regents of the University of Michigan. (2023). Photovoltaic Energy Factsheet. Center for Sustainable Systems. Retrieved June 11, 2023, from <https://css.umich.edu/publications/factsheets/energy/photovoltaic-energy-factsheet>

18IRS. (2023). Residential Clean Energy Credit. IRS. Retrieved June 11, 2023, from <https://www.irs.gov/credits-deductions/residential-clean-energy-credit>

19IRS. (2022). Residential Energy Credits. IRS. Retrieved June 11, 2023, from <https://www.irs.gov/pub/irs-pdf/f5695.pdf>

20EMNRD. (2023). New Mexico Energy, Minerals, and Natural Resources Department. EMNRD. Retrieved June 11, 2023, from <https://www.emnrd.nm.gov/ecmd/wp-content/uploads/sites/3/Solar-Market-Forms-V2.2.pdf>

21United States Environmental Protection Agency. (2023, May 17). Solar Panel Recycling. EPA. Retrieved June 11, 2023, from <https://www.epa.gov/hw/solar-panel-recycling#where>

22Department of Energy. (2023). Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics. Energy Gov. Retrieved June 11, 2023, from <https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20Residential%20Solar%20PV%20-%202021.pdf>

23Marufish. Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0). Resized and Changed Format. Flickr. Retrieved from <https://flic.kr/p/dH18nF>

24Solar Panels and Gable Photo by Michael Coghlan. Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0). Changed Format and Resized. Flickr. Retrieved from <https://flic.kr/p/WV9dUV>

25Full Set of Panels Photo by Jon Callas. Attribution 2.0 Generic (CC BY 2.0). Changed Format and Resized. Flickr. Retrieved from <https://flic.kr/p/9avG3C>

269 Four panels installed Photo by jonsowman. Attribution 2.0 Generic (CC BY 2.0). Changed Format. Resized. Flickr. Retrieved from <https://flic.kr/p/aCUtUv>