This article will provide an overview of the solar incentives and rebates available in New Mexico, and why they are important for the state's economy and environment. Solar energy has become more affordable and accessible in recent years, and New Mexico has taken part in the advancement of solar technology by offering incentives for those who invest in solar energy. Through a combination of tax credits and rebates, New Mexico has made it easier for businesses and homeowners to make the switch to renewable energy. In this article, we will discuss the various incentives available in New Mexico, how they can help you save money, and why they are important for the state.
Current status of New Mexico State Solar Incentives
New Mexico boasts some of the most attractive solar incentives in the country, including generous solar tax credits and rebates. As of 2019, the state offers a personal tax credit of up to 30% of the total cost of a solar system, with an upper limit of $9,000. This includes both labor and equipment costs. Additionally, New Mexico also offers a residential solar rebate of up to $10,000, depending on the size of the system and the installer. This rebate is available from the New Mexico Public Service Company, and can be combined with the state tax credit.
The New Mexico Public Service Company also has a Solar Partner program that helps to reduce the cost of solar installation by offering an additional $1 per watt rebate for residential systems, up to 8 kilowatts. This program is designed to help make solar energy more accessible to low-income households, as well as to increase the adoption of solar energy in the state.
In addition to these state-level incentives, many local governments in New Mexico also offer solar incentives, including property tax credits, zoning exemptions, and property tax abatements. These incentives vary depending on the municipality, but can significantly reduce the overall cost of solar installation. since New Mexico is an electric choice state, customers can take advantage of competition between local electricity suppliers to find the best deal.
New Mexico has some of the best solar incentives in the country. These incentives make investment in solar energy much more affordable and make the state a great place for homeowners looking to make the switch to clean, renewable energy. Whether you’re looking to take advantage of the state tax credit, the rebate from the New Mexico Public Service Company, or one of the many local incentives, New Mexico has a lot to offer for solar energy investment.
Solar Incentives, Tax Credits, and Rebates in New Mexico
New Mexico offers a series of incentives to residents and businesses that invest in solar energy systems. These incentives range from tax credits and rebates to net metering and other forms of financial assistance. Among the most popular are the solar investment tax credit, solar rebate, net metering, virtual net metering, value-of-solar tariff, sales and use tax exemption, and property tax exemption.
The solar investment tax credit is available to both residential and commercial entities in New Mexico who install a solar energy system. It is a 30% tax credit, up to a maximum of $9,000, for the cost of the system, including labor and installation. This credit expires in 2024.
The solar rebate is a one-time payment from the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) to residential, commercial, and industrial customers who install solar energy systems. It is used to offset the cost of the solar system, including labor and installation. The amount of the rebate is determined by the size and type of the system, and the customer’s location.
Net metering is a policy that allows solar energy customers to receive credit on their electricity bills for the electricity their solar system produces. Customers are credited per kilowatt-hour used and are credited for any excess electricity they produce. The electricity bill is then adjusted accordingly.
The virtual net metering program (VNM) allows customers to install solar energy systems in one location and have the credits applied to other meters owned by the same entity. This program is beneficial to those who have multiple sites that use electricity, as it allows them to receive the credits from the solar system at the best location.
The value-of-solar (VOS) tariff allows customers to receive payments for the net energy they generate through their solar energy systems. The amount of the payment is based on the avoided costs of the electric utility. This tariff provides consumers with an additional incentive to invest in solar energy.
The sales and use tax exemption allows customers to purchase a solar energy system without paying the state sales tax. This exemption applies to both residential and commercial customers.
The property tax exemption allows homeowners and businesses to exempt a portion of their property value from assessment for tax purposes when they install a solar energy system. The exemption applies to both residential and commercial customers.
By taking advantage of these incentives, New Mexico residents and businesses can make a smart investment in solar energy and receive the financial benefits of owning a solar system.
Estimated Solar Savings in New Mexico
Going solar in New Mexico is an excellent way to save money on energy bills. With the many solar incentives and tax credits available in the state, the cost of solar is reduced dramatically. In addition to incentives, homeowners in the state can also expect to save up to 30% on their energy bills after installing a solar energy system. The payback period for solar can range from 5 to 8 years depending on the size of the system and the associated costs.
For example, a typical solar installation in New Mexico might cost around $18,000. With the average electricity rate in the state around $0.13 per kWh, that system could generate around 14,250 kWh per year. This, in turn, translates to an estimated cost savings of $2,741 per year, and the system will pay for itself in about 6.5 years. After that, the homeowner can expect to save up to 30% on their energy bills for years to come.
In addition to the long-term savings that come with going solar, homeowners in New Mexico can also take advantage of additional incentives like the federal Investment Tax Credit (ITC). This credit allows for a tax credit of 26%, which will help to reduce the upfront cost of the system. The ITC, combined with New Mexico's solar rebates, can drastically reduce the upfront cost of a solar energy system.
solar energy provides an excellent opportunity for New Mexico residents to save money on energy bills and reduce their environmental footprint. With the many incentives and tax credits available, a solar energy system can pay for itself within 5-8 years, and after that, homeowners can expect to realize significant savings on their energy bills for many years to come.
New Mexico residents have several incentives available to them in 2023 when it comes to adding solar power to their homes and businesses. There are federal, state, and utility-sponsored incentives available in New Mexico. In 2023, the federal Investment Tax Credit (ITC) will remain in place, offering a tax credit of 26% for eligible solar energy systems. Additionally, net metering will remain available, allowing consumers to be credited monthly for electricity generated by their solar systems. Customers of certain utilities may be eligible for additional credits and rebates that can further reduce installation costs. New Mexico is also one of a few states that allows customers to take advantage of a property tax exemption for the value of an installed solar energy system. residents can look forward to additional incentives that may be offered in the future, such as the potential for a solar rebate in the state of New Mexico.
The federal ITC allows residents to claim a credit of 26% of the cost of their solar energy system installation. This credit is available for both residential and commercial solar installations and is available for systems installed between January 1, 2021 and December 31, 2023. Additionally, customers of certain utilities may be eligible for additional credits and utility-sponsored rebates. Net metering is also offered in New Mexico, allowing customers to be credited for any excess electricity generated by their solar system that is delivered to the grid.
In addition to the ITC and net metering, New Mexico offers an additional incentive that many other states do not. Residents of the state can take advantage of an exemption from property tax for the value of an installed solar energy system. This exemption applies to the value of the system, not to any other property improvements that may have been made, such as the installation of new wiring or roofing materials. This exemption is available for both residential and commercial solar installations.
New Mexico residents looking to invest in solar energy have several incentives available in 2023. They can take advantage of the federal ITC, net metering, and a property tax exemption for the value of an installed system. While these incentives can help to reduce the upfront cost of a solar installation, residents should also keep an eye out for additional incentives that may be offered in the future, such as future solar rebates.
Top Solar Installers in New Mexico
1. Bright Future Solar: Bright Future Solar is an experienced solar contractor that has been providing New Mexico with solar solutions since 2009. Their experienced team provides custom design and installation services to meet customer’s needs. They offer a wide range of solar installations and services, including residential, commercial, and agricultural solar solutions. Bright Future Solar has earned an A+ rating from the Better Business Bureau. A 8kW system will cost between $19,500 and $27,500 before incentives.
2. Morningstar Solar: Morningstar Solar provides a variety of solar solutions for residential, commercial, and agricultural customers in New Mexico. They provide custom design and installation services to meet the needs of any customer. Morningstar Solar is highly experienced with installations up to 500kW. A 8kW system will cost between $17,500 and $25,000 before incentives. and have earned an A+ rating from the Better Business Bureau.
3. Sunpro Solar: Sunpro Solar is a leading provider of solar solutions for residential and commercial customers in New Mexico. They have over 20 years of experience in the solar industry and can provide custom design and installation services. Sunpro Solar provides a variety of solutions from home-scale systems up to large commercial and agricultural systems. A 8kW system will cost between $18,500 and $26,500 before incentives and have earned an A+ rating from the Better Business Bureau.
4. SunBug Solar: SunBug Solar is a full-service solar installation company that has been providing New Mexico with residential and commercial solar installations since 2009. They provide custom design and installations services and have completed projects ranging from small residential systems up to large commercial systems. A 8kW system will cost between $20,500 and $28,500 before incentives and have earned an A+ rating from the Better Business Bureau.
5. Urban Solar: Urban Solar is a leading provider of solar solutions in New Mexico. They provide custom design and installation services for residential and commercial customers. Urban Solar provides a variety of solutions ranging from home-scale systems up to large commercial and agricultural systems. A 8kW system will cost between $17,500 and $25,500 before incentives and have earned an A+ rating from the Better Business Bureau.
Which Solar System Is Right for Your Home?
Choosing the right solar system for your home or business in New Mexico can be difficult. Although the state has a great selection of incentives that make solar energy more affordable, there are still some factors to consider before making a decision. The size and layout of your property, the number and type of appliances or devices that will be powered by solar, and the current condition of your roof can all have an impact on the type of system you need. You should also take into account how much energy you will need to generate, how much maintenance is needed to keep the system functioning properly, and how much you are willing to spend on installation and other up-front costs.
To give yourself the best chance of getting the most out of solar energy, it is important to do your research and consult with a professional who can help you decide which system and design is right for your specific needs. A solar expert can assess your property, the available space, the amount of electricity your household or business currently uses, as well as the type and size of solar system needed to meet your energy demands. They can also provide estimates on installation and costs associated with tax credits and rebates that are available to New Mexico residents.
In addition to researching the right system for your needs, you should also consider the kind of technology you want to use. More modern solar technology and components are becoming increasingly efficient and cost-effective, making them much easier to install, maintain, and operate. Many people opt for solar panel systems, while others prefer solar roof tiles or integrated systems. Some people even choose to install solar tracking systems, which enable the solar panels to rotate to face the sun, increasing their efficiency.
No matter which system you choose, it is important to consider the current and future needs of your home or business in order to get the most out of your investment. With the right system and design, you can maximize your savings and make the most of the great solar incentives available in New Mexico.
1. What is the maximum amount of the solar tax credit available in New Mexico?
The maximum amount of the solar tax credit available in New Mexico is $4,000.
In New Mexico, homeowners and businesses that install solar photovoltaic (PV) systems are eligible for a 25 percent gross receipts tax credit, up to a maximum of $4,000. This credit may be used to offset the purchase price of the system, including the solar panels, inverter and other components. The credit is available for both residential and commercial systems, but can only be claimed once every three years. It also has an expiration date and can only be claimed within five years of the date of installation. To qualify for the tax credits, the system must be connected to the local electric grid.2. What types of solar installations qualify for a rebate in New Mexico?
In New Mexico, homeowners and businesses can qualify for a rebate on solar installations that have a minimum of 1.5 kW or higher of photovoltaic (PV) solar power systems. The system must be certified and installed by a qualified contractor with a valid New Mexico Solar Contractor License. The rebates are available for solar photovoltaic systems and some solar water heating systems. Solar pool heating systems, solar heating/cooling systems, or other solar energy systems are not eligible for a rebate.
To be eligible for the rebate, the solar system must be installed on the customer’s property and used for on-site consumption. The rebate amount is based on system size and is calculated using a pre-determined rate for each kW of installed system. The rebate also requires that the customer pay a one-time, non-refundable application fee.
In addition to the rebate, customers can also take advantage of net metering, which allows customers to be credited for any excess electricity their system produces. This credit can be used to offset electricity costs in future billing periods.
To learn more about the solar installation rebate program in New Mexico and to determine if you are eligible, visit the New Mexico Public Regulation Commission website.
3. Are solar incentives for businesses and residential customers the same in New Mexico?
No, solar incentives for businesses and residential customers are not the same in New Mexico. The incentive programs that are available vary depending on the customer type. For residential customers, the state offers a Solar Market Development Tax Credit. This credit allows for a one-time tax credit of up to 30% of the cost of a solar energy system up to $9,000. For businesses, the state offers a Commercial Solar Investment Tax Credit (CITC). This credit allows for a tax credit of up to 10% of the cost of a solar energy system up to $2,000 per year for ten years. The CITC can be combined with federal tax credits, giving businesses a total of up to 30% of the cost of a solar energy system. In addition, businesses can also take advantage of the state’s Solar Market Development Property Tax Exemption, which exempts them from property tax on the solar energy system for up to 10 years.
the incentives available in New Mexico vary depending on the type of customer. Residential customers can take advantage of a larger tax credit, while businesses can take advantage of additional incentives, such as the CITC and the property tax exemption.
4. Are solar incentives available for low-income households in New Mexico?
Yes, there are solar incentives available for low-income households in New Mexico. The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) provides a low-income Residential Solar Energy Systems Tax Credit Program. This program offers a 30% tax credit up to $9,000 on the cost of the solar system to qualifying households. In order to qualify, households must have an income of no more than 200% of the federal poverty guidelines. Additionally, each system must be installed by an EMNRD approved installer and be connected to the public utility grid.
In addition to the EMNRD program, local governments may provide additional incentives or financing options. For example, New Mexico’s Department of Housing and Community Development has a solar loan program for low-income households that provides financing for solar energy systems. The loan terms are such that the household's monthly energy savings should be greater than the monthly loan payments.
State and local governments are continuing to invest in renewable energy initiatives and incentives both to reduce the environmental impact of energy sources and to make renewable energy more accessible and affordable for all. Low-income households in New Mexico may be eligible for these solar incentives, allowing them to save money and become more energy independent.
5. What kind of paperwork is necessary to apply for solar incentives in New Mexico?
In order to apply for solar incentives in New Mexico, the applicant must first fill out a Solar Incentive Application form. The applicant must also provide documentation of the solar system they plan to install, such as the installer's invoice, system diagrams, and system production estimates. Additionally, the applicant must provide proof of the ownership of the property on which the solar system will be installed, such as a copy of the deed or lease agreement. the applicant must submit proof of New Mexico residence, such as a copy of a driver's license, utility bill, or tax return.
Solar Incentive Application: The applicant must fill out the Solar Incentive Application form, which can be obtained from the New Mexico Public Regulation Commission or online.System Information: The applicant must provide documentation of the solar system they plan to install, such as the installer's invoice, system diagrams, and system production estimates.
Proof of Ownership: The applicant must submit proof of the ownership of the property on which the solar system will be installed, such as a copy of the deed or lease agreement.
Proof of Residence: The applicant must also provide proof of New Mexico residence, such as a copy of a driver's license, utility bill, or tax return.
New Mexico is truly a unique place to install a solar energy system. With its sunny days and ample sunshine, it offers homeowners and businesses plenty of opportunities to generate clean electricity. By taking advantage of the state’s solar incentives, homeowners and businesses can enjoy numerous benefits while helping to reduce their energy costs and improve the environment. Whether you’re looking for tax credits, rebates, or other incentives, New Mexico has a variety of programs that can help you get the most out of your solar energy system. By investing in solar energy now, you’ll be positioning yourself for a brighter, more sustainable future, and taking the first step towards a cleaner, more efficient energy system.
You Might Also Like:
| Best solar string lights | My electric bill doubled in one month | Average electricity bill in California | Average electric bill in Ohio | Solar panel carport | Is electricity cheaper at night | Difference between generator and inverter | Average electric bill in Florida | Cost of heat pump for a 3,000 sq ft home | Average light bill for 1 bedroom apartment | Most affordable solar panels | How many amps does a dryer use | 500W solar panel | Can you charge a lithium battery with an AGM charger | Best vertical wind turbine | One advantage to a pole-mounted solar array is that it... | Standing charges | Florida solar incentives | Best microwave wattage | Generator for apartment|
