Going solar in New Mexico

In New Mexico, an average home needs a 5kW solar system in order cover most of their electricity needs. Given the average residential price-per-watt of $4.1 in New Mexico, a 5kW system can cost around $20,500 depending on applicable rebates and other factors.

Select your county by clicking on the map and see the potential generated solar power and panel pricing. See how it compares with the US state average.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
New Mexico: $20,500US Average: $19,594
Average Payback Period The number of years until you break even on the solar investment.
New Mexico: 19 yearsUS Average: 13 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
New Mexico: $1,247US Average: $10,133

Solar Potential in New Mexico

Estimated system size and solar electricity production per median viable roof in
New Mexico.

Roof size 947sq. ft.
Capacity 13.25kW DC
Electricity 21.9kkWh AC per yr.

Go Solar for as low as $0 down and $79/mo and reduce or replace your electric bill

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Compare solar panels by system size in New Mexico

Get the most value out of your roof by comparing the different benefits a given system size has.

System Size 1kW
Roof Size Min. space required
72 ft²
Electricity Value Annual Production $259 a year
Est. Price
$4,100
Savings from a 1kWthis system
  • Est. yearly production 1,882 kWh
  • Est. monthly savings $22
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 1.39 tons a year
  • Equivalent to planting 64 trees a year
  • Equivalent to driving 3,452 mi less a year
System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $518 a year
Est. Price
$8,200
Savings from a 2kWthis system
  • Est. yearly production 3,765 kWh
  • Est. monthly savings $43
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 2.79 tons a year
  • Equivalent to planting 128 trees a year
  • Equivalent to driving 6,903 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $777 a year
Est. Price
$12,300
Savings from a 3kWthis system
  • Est. yearly production 5,647 kWh
  • Est. monthly savings $65
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 4.18 tons a year
  • Equivalent to planting 192 trees a year
  • Equivalent to driving 10,355 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $1,036 a year
Est. Price
$16,400
Savings from a 4kWthis system
  • Est. yearly production 7,530 kWh
  • Est. monthly savings $86
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 5.58 tons a year
  • Equivalent to planting 256 trees a year
  • Equivalent to driving 13,807 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,295 a year
Est. Price
$20,500
Savings from a 5kWthis system
  • Est. yearly production 9,412 kWh
  • Est. monthly savings $91
  • Full payback in 19 years
Environmental Impacts
  • Reduces CO2 emissions by 5.88 tons a year
  • Equivalent to planting 270 trees a year
  • Equivalent to driving 14,555 mi less a year

New Mexico solar incentives, tax credit, and rebates

New Mexico has 14 rebates and tax credits that you may be eligable for. Visit the official links for more details to see if you apply.

Solar incentives in NM

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.

Farmington Electric Utility System - Net Metering

Value:Varies

Certain private utilities in New Mexico are required to offer net metering programs using state standards to their distributed renewable generation customers. Farmington Electric (FEUS) is one of the subject utilities, but their net metering program reached maximum capacity in February 2017. New applications are no longer accepted. FEUS will continue to honor net metering agreements for residential and commercial customers who installed their renewable energy system before February 2017. Contracts will become null and void if the customer makes substantial alterations to their energy system or sells their property. Additional information is available from the FEUS website.

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Frequently Asked Questions

  • As a general rule, unless there are local limitations, the main limitations to the amount of solar panels you can put on your roof are the available space on your roof, your electricity usage, your providers net metering rules, and the limitations of your house hold electrical system.
  • Based on our research the average price per installed watt is $4.1 in New Mexico. This means for a 10kW system you can expect to pay $41,000 though pricing can vary significantly between installers based on the projects requirements.
  • Based on a Zillow research study from 2019, home with solar panels sell for roughly 4.1% more.
  • To generate the most power, solar panels in the United States should face true south as this generally results in the solar panels receiving the most light each day throughout the course of the year. That said, given that energy prices are often variable throughout the day, your installer may recommend you rotate your panels slightly so that the panels will receive more light at the end of the day when energy prices can be more expensive. That said, for most consumers the positioning of solar panels is highly dependent on your home's roof.
  • Based on our continuously updated database of solar installers, we have found 28 verified solar install companies in New Mexico

Solar installers in New Mexico (28)

Freedom Forever

Temecula, CA(800) 685-1850

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

PPC Solar

Taos, NM(505) 395-2244

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Douglass Colony Group

Commerce City, CO(877) 288-0650

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Powur PBC

Del Mar, CA(866) 467-6987

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Micrometer Engineering

Scottsdale, AZ(602) 790-5749

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

IonSOLAR

Provo, UT(888) 781-7074

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Positive Energy Solar

Albuquerque, NM(505) 908-9578

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

SunPro Solar

Mandeville, LA(866) 599-3643

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Auditing of energy requirements for independent energy generation.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

OE Solar

Albuquerque, NM(505) 850-8863

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Dividend Finance

San Francisco, CA(415) 805-7000

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Sol Luna Solar

Dixon CDP, NM(505) 455-8875

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Palmetto Solar

Charleston, SC(855) 339-1831

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

NM Solar Group

Rio Rancho, NM(505) 295-2267

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Sunnova Energy

Houston, TX(866) 786-6682

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Sunrun

San Francisco, CA(833) 394-3384

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Solar Smart Living

Santa Teresa CDP, NM(915) 400-2995

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

KGT Renewables

Phoenix, IL

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Precision Renewables

Snyderville CDP, UT(435) 602-4120

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Ocotillo Solar Electric

Albuquerque, NM(505) 228-8900

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
Last Reviewed By: Ginalyn Gelera
Published: 2022-08-24