Clean Energy, Lower Bills, and Big Incentives
New Mexico is a prime location for solar energy, thanks to its abundant sunshine and favorable policies. Solar in New Mexico is more accessible and cost-effective than ever due to numerous incentives and rebates that help homeowners and businesses reduce upfront costs. While the solar panel cost New Mexico residents face can seem high, state and federal programs make solar installation a smart investment.
New Mexico Solar Incentives
If you’re considering solar in New Mexico, you’ll benefit from several financial programs that lower installation costs and maximize savings. These incentives include tax credits, rebates, and exemptions that reduce your overall investment and increase your return over time.
Federal Solar Tax Credit
The Federal Investment Tax Credit (ITC), now known as the Residential Clean Energy Credit, allows homeowners to deduct 30% of their total solar system cost, including installation, permits, and equipment. To claim this incentive, you must own the system outright—either through purchase or financing, but not leasing. This credit significantly lowers the solar panel cost New Mexico homeowners pay upfront.
Solar Market Development Tax Credit
New Mexico offers its own tax credit for solar installations. The Solar Market Development Tax Credit (SMDTC) provides up to $6,000 or 10% of your solar system’s total cost. To qualify, your system must be approved by the Energy, Minerals, and Natural Resources Department (EMNRD). The annual budget for this incentive is currently $12 million but is expected to increase to $30 million in 2024.
Sustainable Building Tax Credit (SBTC)
If your solar installation is part of a sustainable building project, you may qualify for the Sustainable Building Tax Credit (SBTC). This incentive is available to homes certified by the U.S. Green Building Council and provides tax credits based on the level of certification achieved.
NM Solar Rebates and Exemptions
New Mexico Solar Property Tax Exemption
Although adding solar panels increases your property value, the New Mexico solar program ensures you won’t pay additional property taxes. The Renewable Energy Property Tax Exemption protects homeowners from higher assessments due to their solar upgrades.
Net Metering in New Mexico
One of the most valuable incentives is net metering New Mexico. This program allows homeowners to send excess solar energy back to the grid in exchange for credits on their electricity bill. With net metering New Mexico, you can reduce or even eliminate your monthly electricity costs. Regulated utilities must provide full retail credit for solar energy, ensuring maximum savings.
Are Solar Panels Worth It in New Mexico?
With generous solar incentives New Mexico offers, including tax credits and rebates, switching to solar is a financially wise decision. While the cost of solar panels in New Mexico may have been a concern in the past, rebates and tax credits significantly offset the expense. Homeowners can save thousands of dollars annually, making solar a long-term investment in energy independence and sustainability.
How to Claim New Mexico Solar Tax Credit?
If you’re wondering how to claim New Mexico solar tax credit, the process is straightforward. After installing your system, work with a tax professional to file the necessary paperwork with the New Mexico Taxation and Revenue Department. Ensure you have approval from EMNRD if applying for the Solar Market Development Tax Credit.
Why Choose SolarSME for Your Solar Installation?
Ready to take advantage of solar rebates New Mexico offers and maximize your energy savings? Solar SME provides expert installation services, helping you navigate rebates, tax credits, and net metering programs. Contact us today to start your solar journey!