New Mexico Solar Power Facts in 2024
If you want to install solar panels in New Mexico, you’re in for a treat. With great insolation of 293 days a year, great solar rebates, and incentives, New Mexico solar power is the way to go to secure energy independence. Residential solar systems go well with new green ideas. If you want to learn more about solar panels in New Mexico, read on.
New Mexico Solar Energy Data
New Mexico ranks 18th in the US by solar capacity. Solar panels produce solar power in the Land of Enchantment with a total solar capacity of 1,231.9 MW. This much renewable energy can supply power to over 248,000 New Mexico homeowners.
Over 32,000 solar installations in New Mexico produce 6.18% of New Mexico’s electricity from a total of 27% renewable energy. This much renewable energy can reduce the state’s carbon footprint and help mitigate climate change. With the Renewable Portfolio Standard that mandates 100% clean energy by 2045, NM is a conscious state regarding climate change.
Solar panels New Mexico has been installed by one of 51 solar installers. Many NM residents can say they can save money on their energy bills thanks to their solar systems. Besides these, there are also 15 solar manufacturers and 21 other companies working in the solar industry. These companies employ a total of 1,880 people in the solar sector.
A 5KW solar panel system can cost as little as $14,900 before great solar incentives and rebates. Thanks to the energy produced, this typical solar panels system can save as much as $24,500 – $33,300 over a 20 year period. If you decide to go for a bigger system and an electric car, you will have made a great investment that saves even more.
New Mexico Solar Statistics
| Description | Status |
|---|---|
| New Mexico National Ranking | 18th |
| Solar Panels Installed(MW) | 1,231.4 MW |
| Can Supply Power to: (No. of Homes) | +248,000 |
| % of State's Electricity from Solar | 6.18% |
| Solar Companies in the State | 87 (15 Manufacturers, 51 Installers and Developers, and 21 Others) |
| Solar Jobs Created | 1,880 |
| Total Solar Investment in the State | $2.4 Billion |
| Out of Pocket Cost for a 5kWh system | $14,900 – $20,100 |
| Net 20-year savings | $24,500 – $33,300 |
| Average Payback Period | 8 – 10.5 years |
| Electricity Bill Offset for a 5kWh system | + 85% |
| Number of Solar Installations | + 32,500 |
Source: SEIA New Mexico
Notable Solar Installations in New Mexico
32,500 solar installations support the NM solar energy system. All solar panels in the state reduce carbon emissions and save money despite a large upfront cost. The net-metering program is one of the many financial incentives, so utility companies strive to offer their customers the best net metering energy credit rates.
There are many notable solar installations in New Mexico:
- Macho Springs Solar Project – 50 MW of solar capacity, which is enough energy to power 12,400 NM homes,
- Jicarilla Solar Plant – 50 MW of power – enough solar power to supply more than 12,400 New Mexico homes with renewable energy,
- Rio Communities Solar Energy Center – 10 MW of solar power, enough to power more than 2,400 NM homes and many more.
Thanks to its ambitious renewable energy plans and great financing options, the number of solar panels in New Mexico will keep producing more energy at lower electricity rates. Contact your utility company and see how you can purchase more clean power.
Average Cost of Solar Energy Systems
The average cost of solar energy systems in the US and New Mexico declined by over 36% in the past five years and over 80% in the past ten years. The cost of your solar installation is at a historical minimum. The declining solar cost and increasing energy costs have made many switch to solar panels.
Solar power in New Mexico costs around $3.17 per watt of DC power installed. The initial investment may seem high so consult a tax professional and see how much money you can save on federal solar tax credit.
Solar Panel Energy Production in New Mexico
From its beginnings in 2007, NM has come a long way regarding solar power production. In 2007, there were just enough solar panels to produce 0.5 MW of electricity. Some five years later, in 2012, the total solar power produced by solar PV modules was 203.4 MW of solar capacity. Fast forward five more years and the total solar capacity increased to 695 MW, and today it is estimated at 1,231.4 MW.
Many other states followed the same path. Solar Panels in Colorado and Solar Panels in New Jersey observed the same pattern. This is due to the cost of solar that has been on a sharp decline in the past decade.
New Mexico Solar Incentives, Rebates, and Tax Credits
Several solar incentives and federal solar tax credits can help you cover a part of the expenses if you decide to install solar panels. A residential solar system is eligible for several solar rebates and solar incentives:
- The Federal Solar Tax Credit,
- Sustainable Building Tax Credit,
- El Paso Electric RECs,
- Property Tax Exemption, and
- Sales Tax Exemption.
The Federal Solar Tax Credit
The Federal Government Solar Tax Credit can save you as much as 26% of your solar investment by the end of 2022. In 2023, this federal solar tax credit drops to 22%, and from 2024 onwards, a residential solar system is not eligible for this refund. The Federal ITC is given back either in a tax return or tax credit that can be rolled over for up to 10 years.
Sustainable Building Tax Credit
If you install a solar power system as a part of building a sustainable home, you could earn as much as $6.50 per square foot of your home’s surface. To be eligible, your home has to be deemed sustainable by the US Green Building Council. Beware, sometimes you may need to install the most efficient solar panels.
El Paso Electric RECs
If you are an El Paso EC customer, you can participate in their RECs market and sell them to make extra money on the side. You can get as much as $0.02 per kilowatt-hour of electricity generated by your solar panel installation. The RECs are not only applicable to excess energy, but to all energy you produce. An average 5 kW solar system can make you almost $240 per year.
Property Tax Exemption
NM Property tax exemption means that you do not have to pay extra property taxes when installing solar panels. Every kW of solar power you install on your rooftop increases the value of your home by around $6,000, but luckily you won’t have to pay extra in your property taxes. Solar in NM is therefore backed by strong legislation AND other incentives.
Sales Tax Exemption
The Solar Equipment sales tax exemption means that you do not have to pay the 5.125% sales tax on your solar panels. Thanks to this solar incentive, you will save $51.25 for every $1,000 you spend on your solar system array. So, a 10 kW solar system is eligible for a $1,623.04 sales tax exemption.
The below example represents the total cost of a 10 kW solar system installed on a 1,838 square feet household, an average home size in NM that has been certified sustainable by the US Green Building Council.
| Description | Equivalent Cost |
|---|---|
| The Cost of PV - 10kWh at the average of $3.17 per watt of DC installed | $31,700 |
| The Federal Solar Tax Credit @26% by the end of 2022 | $8,242 |
| Sustainable Building Tax Credits @$6.50 for 1,838 square feet household | $11,947 |
| Sales Tax Exemption @ 5.125% | $1,624 |
| New Mexico Solar Market Development Tax Credit @ 10% | $3,170 |
| Net Metering in New Mexico @100% power bill offset @$0.1449 per kWh | $1,552.16 |
| RECs (SRECs) sold at $0.02 per kWh | $474.00 |
| TOTAL cost for a 10kWh home solar system at the end of year 1 | $4,691 |
| Years before a 10kWh system pays off if all New Mexico solar incentives are taken | 2.5 years |
New Mexico Solar Market Development Tax Credit
The New Mexico Solar Market Development Tax Credit offers up to 10% savings on your solar panel systems. You can earn up to $6,000 in non-refundable tax credits. This solar incentive is available to anyone who installs solar panels on or after March 1st, 2020. There is only $8 million of annual allotment in this incentive, so make sure you grab your spot early on.
Net Metering in New Mexico
Net-metering programs in New Mexico let you send your excess energy to the grid and draw it back when your solar panel systems do not produce enough electricity. In other words, your utility acts like your solar battery storage. At the end of the month, you only pay for the net energy consumption, that is, the number of kilowatt-hours you’ve used on top of your production.
Top Solar Companies in New Mexico
Choosing the best solar company in New Mexico can be a big challenge considering over 50 solar installers in NM. Here are top solar companies in New Mexico for your convenience:
- NM Solar Group, Rio Rancho,
- Sunpro Solar, multi-state,
- MySolar, Albuquerque,
- Ocotillo Solar electric, Albuquerque,
- Amenenergy, Santa Fe,
- Select Solar LLC, Santa Fe
- OE Solar, Albuquerque,
- Positive Energy Solar, Albuquerque,
- Strongbuild USA, Los Ranchos Albuquerque, and
- Affordable Solar, Albuquerque,
FAQs
Can you pressure wash solar panels?
It would help if you never used a pressure washer to wash your solar panels. Solar energy production depends on your solar panel system integrity, and washing them with high pressure may open micro-cracks in their surface. Contact your solar company and ask about the best way to clean your brand of solar panels. Usually, water and a brush do the trick.
Does solar increase home value in New Mexico?
Yes, Mexico solar panels increase the value of your home. Your solar panels can increase your property value by up to $6,000 per kW of solar power installed. Your solar power saves money on the energy bill, so your home is more valuable than without any residential solar systems.
Will solar panels increase my insurance?
Yes, your solar energy array will likely increase your insurance. Solar panels are an expensive piece of technology, so any insurance and solar company will warn you about this. Still, New Mexico solar power is cheap, thanks to all the solar tax credits and federal incentives.
Do you still have an electric bill with solar panels?
Unless you decide to go 100% off-grid, you will still receive your electric bill. Installing solar systems takes care of your energy costs, but the utility part of the bill still has to be paid. If you install a smart meter, you can understand the utility expense as a lease on your (non-existent) home battery.
Conclusion
Great solar incentives, tax credit, the ability to save money on your electric bill, and even use the excess power to charge your electric car make the initial investment into your solar panels a great investment. Every solar panel installation in New Mexico is a step to a greener future and a carbon-neutral economy that the state pledged to reach. If you want to use more energy coming from green sources and positively impact the environment, opt for a solar panel array today.
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