Solar Panels Cost $10k-$20k in Carlsbad, NM | August, 2024
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How much do solar panels cost in Carlsbad, NM in 2024?
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To get solar panels installed in Carlsbad, NM is approximately $3.62 per watt in the month of August, 2024.
According to this rate per watt, we can come to the conclusion that for every 1 kW (1000 watts) your system can generate you will have to invest $3,620 to have your solar system installed. In Carlsbad, you will pay approximately $12,670 for a 5 kW panel install after deducting the 30% federal income tax credit. Your energy needs may require a bigger system.
Choose your county from the menu on the left to view the typical roof size and maximum solar panel capacity for homes in your area. Displayed below is a summary of the costs, payback period, and 20-year average savings for a 5 kW system installed in your county.
Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Carlsbad: $12,670US Average: $12,634
Average Payback Period The number of years until you break even on the solar investment.
Carlsbad: 10 yearsUS Average: 8 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Carlsbad: $7,191US Average: $15,248
Solar Potential in Carlsbad
Estimated system size and solar electricity production per median viable roof in Carlsbad.
Roof size 947sq. ft.
Capacity 13.25kW DC
Electricity 21.9kkWh AC per yr.
Electricity Costs in Carlsbad, NM & What that Means for Your Solar Panel Pricing
The average monthly electric bill for a Carlsbad energy consumer is $105.38, based on an typical usage of 1,169 kWh. Compact dwellings, such as townhouses and duplexes, are also encompassed in the figures noted in the prior sentence.
In August 2024, the average electricity rate in Carlsbad, NM is 9.01¢ per kWh.
In Carlsbad, the typical energy consumer must have a solar power setup of 8 kW or more to satisfy their full electricity needs. Currently, an 8 kW solar panel installation costs around $20,272 after incentives.
Go Solar for less than your cell phone bill.
Average solar panel costs by system size in Carlsbad
To the left side and below, you will see the cost summary for multiple sizes of solar panel systems set up in Carlsbad. More extensive solar installations carry a higher price, yet they also provide increased electricity savings and more generous income tax credits.
Refer to the solar panel cost calculator to the right and below to see the cost and benefit details based on an average $105.38 electric bill in Carlsbad. To get results more personalized, change the $105.38 to reflect your average electricity bill.
System Size
Roof Size Min. space required
Electricity Value Annual Production
Est. Price
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $683 a year
Est. Price
$10,136
Savings from a 4kWthis system
Est. yearly production 7,590 kWh
Est. monthly savings $57
Full payback in 8 years
Environmental Impacts
Reduces CO2 emissions by 2.67 tons a year
Equivalent to planting 123 trees a year
Equivalent to driving 6,602 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $854 a year
Est. Price
$12,670
Savings from a 5kWthis system
Est. yearly production 9,487 kWh
Est. monthly savings $71
Full payback in 10 years
Environmental Impacts
Reduces CO2 emissions by 3.33 tons a year
Equivalent to planting 153 trees a year
Equivalent to driving 8,253 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,025 a year
Est. Price
$15,204
Savings from a 6kWthis system
Est. yearly production 11,384 kWh
Est. monthly savings $85
Full payback in 12 years
Environmental Impacts
Reduces CO2 emissions by 4 tons a year
Equivalent to planting 184 trees a year
Equivalent to driving 9,904 mi less a year
System Size 7kW
Roof Size Min. space required
501 ft²
Electricity Value Annual Production $1,195 a year
Est. Price
$17,738
Savings from a 7kWthis system
Est. yearly production 13,282 kWh
Est. monthly savings $100
Full payback in 14 years
Environmental Impacts
Reduces CO2 emissions by 4.67 tons a year
Equivalent to planting 214 trees a year
Equivalent to driving 11,554 mi less a year
System Size 8kW
Roof Size Min. space required
572 ft²
Electricity Value Annual Production $1,366 a year
Est. Price
$20,272
Savings from a 8kWthis system
Est. yearly production 15,179 kWh
Est. monthly savings $105
Full payback in 16 years
Environmental Impacts
Reduces CO2 emissions by 4.92 tons a year
Equivalent to planting 226 trees a year
Equivalent to driving 12,179 mi less a year
Carlsbad Solar Panel Installation Incentives & Rebates | 2024
For rural small businesses and farms, the REAP Grant could provide funding that covers between 80% and 100% of the necessary expenses for installing renewable energy systems. Believe you fit this category? Confirm your qualification with our REAP Grant eligibility tool.
For residential solar projects, nearly all people are eligible for the 30% federal income tax credit, which makes solar a sensible solution in many parts of the country. Alongside federal efforts, state and local programs help to support the use of solar power.
Residents of New Mexico can access 13 solar rebate and incentive programs from a number of utilities and governmental bodies.
Solar incentives in NMIncentive Description Value
PNM - Performance-Based Solar Program
Value:Varies
PNM may enter power purchase agreements with solar PV, thermal, and HVAC customers to obtain credits toward the state's renewable portfolio standard. Qualifying systems may be rated for up to 100 kW of capacity. As compensation for ownership of the customer's RECs, PNM will apply bill credits based on the current value of an individual REC and the amount of energy generated by the solar panels. Should an earned bill credit exceed consumption liability, it will roll forward to subsequent months. Agreements last for eight years by default, but they may be extended for larger systems. Additional information is available from the PNM website.
Sustainable Building Tax Credit (Personal)
Value:Varies
In New Mexico, new single or multi-family homes which meet certain green construction standards may be eligible for personal income tax credits. Eligible homes must qualify for ENERGY STAR certification or a minimum LEED Silver certification level and pursue formal accreditation from the US Department of Energy/Green Building Council. Once a building is certified, the owner may apply for the credit through the Department of Energy, Minerals, and Natural Resources. The amount of the credit will be determined on a rubric considering the specific certification obtained and the square footage of the property. Additional information is available from the EMNR website.
Solar Energy Gross Receipts Tax Deduction
Value:Varies
In New Mexico, active and passive solar water heating and HVAC equipment are exempt from state gross receipt tax. Gross receipt tax is similar to sales tax and is an assessment of the total of annual business receipts after expenses. Certain trombe walls and water tanks may also qualify for the exemption if they meet certain technical specifications. Customers do not have to do anything to claim the exemption. Retailers should present a completed form RPD41341 for the system to the New Mexico Taxation and Revenue Department. Additional information is available from the NMTRD website.
Renewable Portfolio Standard
Value:Varies
New Mexico first established a renewable portfolio standard in 2004 to set goals for alternative energy investment. In 2020, at least 20% of the state's retail electricity was required to be sourced renewably. Over the long term, 50% of retail electricity must be renewable by 2030, and all of the state's electricity must be emission-free by 2045. Carve-out provisions require portions of annual renewable energy investment to use solar and wind technologies. Compliance is measured through a Renewable Energy Credit (REC) system pegging a fixed amount of electricity to a fluctuating dollar value. All operations renewable energy systems in the state generate RECs, which utilities must procure through net metering and power purchasing agreements. For failure to meet the annual REC quota, a utility will be charged penalty fines for each kilowatt hour they are deficient.
Solar/Wind Construction Permitting Standards
Value:Varies
Contractors supervising the installation or repair of a solar or wind energy system in New Mexico should have the proper license from the state board. Valid licenses include EE-98 and ER-1. Workers performing the installation or repair of a solar or wind energy system should have an EE-98J or ER-1J journeyman's license. Provisions are made for apprentices who will be supervised by a journeyman. All new wind turbines are required to undergo a structural engineering analysis. Solar PV systems may need an analysis if they exceed a minimum weight, use a unique mounting strategy, are mounted on a roof with over-spanned structures, or if structural changes are needed. Analysis results are required for a permit to be approved.
Sustainable Building Tax Credit (Corporate)
Value:Varies
In New Mexico, new commercial buildings which meet certain green construction standards may be eligible for corporate income tax credits. Eligible buildings must qualify for a minimum LEED Silver certification level and pursue formal accreditation from the US Department of Energy/Green Building Council. Once a building is certified, the owner may apply for the credit through the Department of Energy, Minerals, and Natural Resources. The amount of the credit will be determined on a rubric considering the specific certification obtained and the square footage of the property. Additional information is available from the EMNR website.
Clean Energy Revenue Bond Program
Value:Varies
By a 2005 act of the New Mexico legislature, the state may use bonds to finance new renewable energy investment or energy efficiency upgrades for state buildings and public schools. Funding recipients have a 10-year window to make improvements suggested by the Energy, Materials, and Natural Resources Department. Bonds are tax-exempt and will be repaid through energy cost savings.
Drinking Water State Revolving Loan Fund
Value:Varies
The New Mexico state government manages a revolving loan fund to support drinking water access, quality, and safety. Repaid funds immediately "revolve" to another borrower, allowing for perpetual state investment and continued support through interest. By default, at least 25% of the loan principal is forgiven, effectively taking the form of a grant. Up to 75% of the principal may be forgiven if a project aids low-income/disadvantaged communities or supports water and energy conservation efforts.
Local Option - Renewable Energy Financing District/Solar Energy Improvement Special Assessments
Value:Varies
Cities and counties in New Mexico may join Renewable Energy Financing Districts (REFDs), the state's version of a property-assisted clean energy (PACE) program. With the usual exception of single-family homes or multi-family residential property under five units, any property may apply for specialized energy efficiency loans through their local REFD. Loans carry a maximum principal of 40% of a property's assessed value. They are offered at low interest rates and secured through loss reserve funds. Repayment takes the form of a property tax lien senior to mortgages; this means should the borrower sell their property, the new owner will be responsible for continuing loan payments. Additional information is available from local REFDs.
Gross Receipts Tax Exemption for Sales of Wind and Solar Systems to Government Entities
Value:Varies
In New Mexico, equipment used as part of a wind turbine or to otherwise generate wind power for a government agency is exempt from state gross receipt tax. Solar PV and active/passive solar thermal systems are also exempt as of 2010. Gross receipt tax is essentially equivalent to corporate sales tax in other states. Incentives are applied at the time of purchasing the equipment. Additional information is available from the state revenue department.
New Mexico Solar Easements & Rights Laws
Value:Varies
New Mexico has adopted two separate "solar rights" laws protecting access to sunlight for solar panel owners. Under the Solar Rights Act of 1977, it is unlawful for property owners neighboring a solar array to purposefully obstruct solar access by placing new structures or vegetation. Under the Solar Recordation Act of 1983, property owners may obtain a "solar right" from their county government. Solar rights act similar to easements and are tied to the property's deed. Later statutes overruled local ordinances and association covenants banning solar panels, with exceptions made for historic districts.
System Benefits Charge
Value:Varies
In 2002, New Mexico established a System Benefits Fund to support clean energy adoption and education with an emphasis on serving low-income populations, local/county governments, and school districts. The fund is supported by a surcharge on all customer energy bills in the state. Utilities may earn grants to build new solar/wind farms, hydroelectric installations, or biomass plants. Grants may also fund line extensions for low-income neighborhoods and rural or remote areas. Additional information is available from the New Mexico Energy, Minerals, and Natural Resources Department.
Alternative Energy Product Manufacturers Tax Credit
Value:Varies
Businesses in New Mexico that produce components for renewable or clean energy devices, including hybrid and electric vehicles, may be eligible to claim the Alternative Energy Product Manufacturers tax credit. Both end-use products and components supplied to end-use product manufacturers are eligible for the incentive. Credit amount is determined on an individual basis by the state Taxation and Revenue department; at maximum, it will be 5% of the business's expenditures. The credit will be awarded on the condition that the company creates new full-time jobs dependent on its expenditures. Additional information is available from the NMTRD website.
Are solar panels worth it in New Mexico?
Homeowners in Carlsbad who expect to live in their residence beyond the payback period of their solar system will find solar panels an clear choice. If you install a 5 kW solar system in Carlsbad, NM, you might save $12,621.2 over 20 years on average, with a break even point at roughly 10 years.
The cost of not having solar panels in Carlsbad, NM
Apart from missing out on the savings highlighted above, the absence of solar panels or an alternative backup energy solution leads to total dependency on your electric utility for power. Complete dependence on your utility isn't always the best idea, as numerous recent news reports have illustrated.
Yearly, customers in Carlsbad have experienced approximately 1.21 utility outages.Each year, customers in Carlsbad have experienced approximately 1.21 utility outages. On average, an outage lasts 149.99 minutes. When major events such as wildlife damage, grid management errors or landslides occur, these durations can increase significantly
A solar panel system could lessen the burden of future outages, even if it lacks a backup battery.
Go Solar for less than your cell phone bill.
What impacts the cost of solar panels in Carlsbad, NM?
Your Energy Needs - Even if the initial expense is larger, the price per watt declines with larger solar panel systems. Consumers often realize that setting up a solar system to fully cover their electric bill is a good move, resulting in the most savings.
Make & Model - Like other items, solar panels are available in a range of makes and models. The potential system preferences of your selected installer make it crucial to pick a highly rated company. For consumers seeking a superior long-term experience, opting for better quality equipment is essential.
Solar Panel Type - For many good reasons, monocrystalline panels are now the industry standard. Although they are costlier, they generate increased energy. The majority of installers utilize panels made of this material.
Your Property - Every home and property differs in its own way. Challenges like sloping terrain, trees, or additional hindrances can increase the difficulty of installing solar panels. Using satellite imagery, solar installers can today assess your home and integrate these elements into the first cost estimate.
Labor Rates - The pay employees get from their employers vary, and these expenses are passed on to the consumers. Businesses paying more to their employees frequently get higher reviews for their work and customer service.
Permitting & Interconnection - Depending on the area, local permitting and utility interconnection fees will impact the cost of your installation. Quality installers will factor these costs into your preliminary quotes to prevent unexpected expenses.
Solar systems for selling electricity back to the grid.
Consulting on all things solar related.
Carlsbad, NM Solar Panel Cost FAQs
In Carlsbad, NM, the mean cost per watt for solar panels as recorded in August, 2024 is $3.62/W. The approximate cost of a 5 kW solar panel system in Carlsbad, NM, after deducting federal tax credits, is $12,670.
New Mexico offers 13 different rebates and incentives from a range of utilities and government organizations. Also, nearly everyone can take advantage of the 30% federal tax credit.
While cash payments provide the most savings, there are now many financing options for solar panels that are also cost-effective. Information about financing options will often be detailed in your preliminary quotes by many installers.
Yes, the typical payback time for 5 kW solar panel systems in Carlsbad, NM is 10 years, and the expected electricity cost savings over 20 years is $12,621.2.
Savings from 
Environmental Impacts 
