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What solar incentives are available in New Mexico?
As a homeowner in New Mexico, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Local Government
How to apply : The Drinking Water State Revolving Loan Fund provides low-cost financial assistance to eligible public water systems to finance the cost of repair and replacement of drinking water infrastructure, maintain or achieve compliance with the federal Safe Drinking Water Act (SWDA) requirements, and protect drinking water quality and public health. Community water systems and nonprofit non-community water systems are eligible to apply for DWSRLF funding.
Who’s eligible : Construction, Local Government, State Government, Federal Government, Installers/Contractors, Retail Supplier
How to apply : New Mexico has a gross receipts tax structure for businesses instead of a sales tax. Businesses are taxed on the gross amount of their business receipts each year before expenses are deducted. Receipts associated with the sale of certain wind turbine equipment to federal, state, or local government entities are exempt from being added to gross receipts. S.B. 201, signed in March 2010, extended this exemption to solar thermal electric and photovoltaic systems sold to a government on or after July 1, 2010.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
How to apply : Eligibility and Availability Net metering is available to all "qualifying facilities" (QFs), as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA), which pertains to renewable energy systems and combined heat and power systems up to 80 megawatts (MW) in capacity. There is no statewide cap on the aggregate capacity of net-metered systems. All utilities subject to Public Regulation Commission (PRC) jurisdiction must offer net metering. (Municipal utilities, which are not regulated by the PRC, are exempt.) Customers are required to be billed for service in accordance with the rate structure and monthly charges that the customer would be assigned if the customer had not interconnected a QF. Net Excess Generation For net-metered systems 10 kilowatts (kW) or less, the utility has a choice in how to compensate customers for net excess generation (NEG). The utility may credit the customer on the next bill for the excess kilowatt-hours (kWh) generated, by either: Crediting or paying the customer for the NEG supplied to the utility at the utility's energy rate (i.e., avoided cost rate); or, Crediting the customer for the kWh of NEG supplied to the utility. Unused credits are carried forward from month-to-month, provided that if a utility opts to credit customers and the customer leaves the system, the customer's unused credits for excess kWh generated are paid to the customer at the utility's energy rate. Utility-specific information on net metering can be found at the following websites: PNM Resources (Public Service Company of NM) - Rider No. 24 Xcel Energy (Southwestern Public Service Company) - Tariff No. 3018.33 El Paso Electric Company - Rate No. 16 For all other net-metered systems up to 80 MW, the NEG delivered from the QF to the utility is purchased by the utility at the utility's applicable time-of-use or single period energy rate. If a customer has NEG totaling less than $50 during a monthly billing period, the excess is carried over to the customer’s next monthly bill. If NEG exceeds $50 during a monthly billing period, the utility will pay the customer the following month for the excess. The energy rate to be paid for the energy supplied by the QF in any month shall be the respective month's rate from the utility's current schedule on file with the PRC. Each utility shall file with the PRC its schedule containing monthly energy rates that will be applicable to the next twelve-month period. Each month's energy rate contained in the schedule is the average of the economy energy purchases by the utility for the corresponding month of the immediately preceding 12-month period. The energy rate contained in the schedules is required to include the savings attributable to the avoidance of losses due to transmission, distribution, and transformation as applicable for different voltage levels of interconnection. Utilities with retail time-of-use rates on file with the PRC must file schedules reflecting monthly energy rates calculated for peak periods only and off-peak periods only which shall be applied to QFs whose generation is limited to peak periods only or off-peak periods only. Interconnection The PRC adopted revised interconnection standards for customer-sited generators in July 2008. If provision of the net metering option requires metering equipment and related facilities that are more costly than would otherwise be necessary absent the requirement for net metering, the QF must pay all incremental costs associated with installing the more costly metering equipment and facilities. The QF must give the utility at least 60 days written advance notice to interconnect, and the utility must specify within 15 days the reason(s) why it cannot interconnect as requested if it is unable to do so. Within 10 days of receiving notification of the intent to interconnect from a customer with a QF 10 kW or less in size, the utility must notify the customer of any metering costs.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government
How to apply : The Public Regulation Commission (PRC) adopted revised standards and procedures for the interconnection of generating facilities in New Mexico in July 2008. Rule 569 applies to all qualifying facilities (QFs) under the federal Public Utility Regulatory Policies Act, which generally includes all renewable energy systems and combined heat and power (CHP) systems up to 80 megawatts (MW) in capacity. Rule 568 applies to renewable energy systems and CHP systems up to 10 MW in capacity. The purpose of Rule 568 is to simplify the interconnection requirements for QFs up to 10 MW and to encourage the use of small-scale, customer-owned renewables or alternative energy resources. New Mexico adopted updated interconnection standards in 2022. New Mexico's new rules in some cases use "export capacity" rather than total capacity to measure system size to better reflect the impact of energy storage. Incentives All utilities subject to PRC jurisdiction must offer net metering and comply with these standards. (Municipal utilities, which are not regulated by the commission, are exempt.) System Capacity Requirements Interconnection applications will generally follow this review path: Systems up to 25 kilowatts (kW) in export capacity and 50 kW in nameplate capacity are eligible for the "Simplified Interconnection Process," which includes simplified applications. Systems up to 5 MW are eligible for the "Fast Track Process," which might include supplemental review. Systems greater than 5 MW and up to 10 MW must follow the "Full Interconnection Study Process." Systems greater than 10 MW must follow the "Case Specific Study Process." Process All systems must comply with all relevant local and national standards (including the NEC, IEEE and UL standards) and meet any additional requirements approved by the PRC. A redundant external disconnect device is required for all interconnected systems. For systems greater than 10 kW, the disconnect switch must be visibly marked and accessible to and lockable by the utility. The PRC may require the owner of a generating facility with a rated capacity of up to 250 kW to obtain general liability insurance prior to connecting with a utility if the utility provides a sufficient reason for doing so. A utility may directly and independently require owners of systems greater than 250 kW to provide proof of insurance, with reasonable limits not to exceed $1,000,000, or other reasonable evidence of financial responsibility. A mutual indemnification agreement between the customer and the utility is required. Interconnected customers must pay an application fee that varies according to the size of the system. Systems up to 25 kW must pay $150; systems greater than 25 kW and up to 100 kW must pay $300; and systems greater 100 kW must pay $300 plus $1 per kW. If a system is non-export only, it has a fee of $150 if below 100 kW, or $300 if above 100 kW. In addition to these fees, a small utility with fewer than 50,000 customers may charge reasonable consulting fees for systems greater than 10 kW.
Who’s eligible : Commercial, Residential
How to apply : Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country. Property Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. In 2009 New Mexico enacted two separate bills authorizing local governments to offer these types of programs using different mechanisms. (Not all local governments in New Mexico offer PACE financing; contact your local government to find out if it has established a PACE financing program.) Renewable Energy Financing District Act New Mexico enacted S.B. 647 in 2009, which authorizes municipalities and counties to create renewable energy financing districts (REFD) for the purpose of providing financing for consenting property owners within the district to install renewable energy technologies. Eligible technologies include photovoltaics, solar thermal, geothermal, and wind. A county is authorized to create a REFD in both its unincorporated and incorporated areas (provided that the county receives the consent of the impacted municipalities in an incorporated area). A municipality may create a REFD within its borders. Municipalities and counties must follow the same process for establishing a REFD. First, it must draft and adopt a resolution that includes specific details of the district, such as the types of renewable energy technologies to be included. After passing the resolution, the county or municipality must hold a public hearing and solicit feedback from stakeholders. Finally, after considering the opinions and comments, it is required to establish the REFD by way of ordinance. Once the district is formed, individual property owners may opt in to participate per the terms of the program. Any financing a property owner receives is repaid as an assessment on their property tax and will be a senior lien on the property until fully repaid. The district may issue bonds to fund financing programs and the standards for the district board’s roles and powers. Each district will be governed by a district board of five members. These members may be from the local government or individuals appointed by the local government (either way, the makeup of the board must be specified in the resolution and subsequent ordinance). Solar Energy Improvement Special Assessment Act New Mexico also enacted H.B. 572 in 2009, which authorizes a county to pass an ordinance that creates a “solar energy improvement special assessment” provision. The county itself is not authorized to provide funding directly to property owners; rather, it creates rules for certifying certain private banks and financing institutions as “solar energy improvement financing institutions.” Solar energy improvement financing institutions are authorized to loan property owners up to 40% of the assessed value of the property for purposes of solar energy (photovoltaic or solar thermal) improvements. The property owner will enter into a direct agreement with a certified financial institution for the funding and they will be required to apply to the county as well, since the loan through the private institution will be paid via an assessment on their property tax and will constitute a lien on the property. The county devises the process for transferring funds collected via the special assessment to the participating financial institution. No county my pass an ordinance that contains additional provisions to those outlined in the law (e.g., an ordinance may not require property owners to receive an energy audit as a condition of participation).
Can you claim multiple tax incentives in New Mexico?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does New Mexico offer tax exemptions?
Loan Program
Category : Financial Incentive
Website : https://www.nmfinance.com/water-project-fund/drinking-water-state-revolving-loan-fund/
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://nmonesource.com/nmos/nmsa/en/item/4378/index.do#!fragment/zoupio-_Toc60646458/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgDYAGDgFj4CsADgCUAGmTZShCAEVEhXAE9oAclViIhMLgTzFK9Zu26QAZTykAQioBKAUQAy9gGoBBAHIBhe2NJgAI2hSdhERIA
Applicable Sectors : Local Government, Schools, State Government, Institutional
Incentive Amount :
Implementing Sector : State
Sales Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Construction, Local Government, State Government, Federal Government, Installers/Contractors, Retail Supplier
Incentive Amount : 1
Implementing Sector : State
Category : Financial Incentive
Website : https://www.tax.newmexico.gov/tax-professionals/tax-credits-overview-forms/
Applicable Sectors : Commercial, Construction, Residential, Installers/Contractors, Retail Supplier
Incentive Amount : 100% of gross receipts from sale and installation of solar energy systems, dark-colored water tanks, and non-vented trombe walls
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial
Incentive Amount : 100% of value may be deducted for purposes of calculating Compensating Tax due
Implementing Sector : State
Rebate Program
Category : Financial Incentive
Website : http://www.epesaver.com/
Applicable Sectors : Commercial, Industrial, Federal Government
Incentive Amount : Prescriptive Incentives Evaporative Cooling Units: $500/unit Food Service Equipment: Varies, See Website for details. Solid and Glass Door Reach-Ins: Varies, See Website for details. Refrigerated Beverage Vending Machine: $115 Multi and Variable Speed Pool Pumps: $450 Water Conservation: Varies, See Website for details. Air Infiltration Measures: Varies, See Website for details. Window Treatments: $1.00/sq. ft. Cool Roofs: $0.125 - $0.180/kWh HVAC HVAC Lodging Technology: $120/unit Cooling Tower Fans: $50/HP Hot Water Pumps: $125/HP Supply Fans, Return Fans, Cooling Water Pumps, and WSHP Circulation Pumps: $250/HP Commercial HVAC, All HVAC Equipment: $275/kW, $0.20/kWh Lighting Interior Fixtures: $275/kW, $0.085/kWh Exterior Fixtures: $0.085/kWh Vending Energy Misers Vending Miser: $50/unit Cooler Miser: $50/unit
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.xcelenergy.com/staticfiles/xe-responsive/Marketing/nm-business-programs-summary.pdf
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount : Building Tune-up Audit: $500, Up to $400/kW saved for additional measures Motors: $25 - $5,500 Drives: $400 - $10,500 Air Compressor: $1,000 - $7,000 No-Loss Air Drain: Up to $200 Cycling Dryers: Up to $1.50/CFM Mist Eliminators: Up to $3.00/CFM Purge Controls: Up to $1,000 Constant Speed Motor Controllers: Up to $10/HP Pump-Off Controllers: Up to $3,000/unit Cooling System: Incentives varied. See program website for details Custom Measures: Up to $400/kW saved Lighting (Retrofit): Incentives varied. See program website for details Lighting (New Construction): Up to $400/kW
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nmgco.com/en/residential_rebate_programs
Applicable Sectors : Construction, Residential, Multifamily Residential
Incentive Amount : High Efficiency Showerhead: FREE Insulation Tier 1: 25% of cost up to $500 Insulation Tier 2: 25% of cost up to $300 Clothes Dryer: $25 Duct/Air Sealing: $200 Tankless Water Heater: $325-$375 Storage Tank Water Heater: $100-$115 Gas Furnace: $200 - $375 Smart Thermostat: $50
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.nmgco.com/en/business_energy_efficiency_savings_and_rebates
Applicable Sectors : Commercial, Industrial, Schools, Federal Government, Institutional
Incentive Amount : Tankless Water Heater (Large): $800-$1,000 Tankless Water Heater (Small): $350 - $400 Water Heater (Large): $500-$550 Water Heater (Small): $500 Hot Water Boiler: $125 Condensing Boiler: $600 Furnaces: $400-$500 Commercial Clothes Washer: $100 Steam Trap Service: $50-$125/trap Commercial Kitchen Equipment: Varies, from $100-$2,000/unit, based on technology Custom: $0.60/therm (1-5 year measure life); $0.90/therm (+5 year measure life)
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pnm.com/rebates
Applicable Sectors : Residential, Low Income Residential
Incentive Amount : Refrigerator/Freezer Recycling: $75 Lighting: Instant Discounts at Participating Retailers Peak Demand Reduction: $75 for signing up and $25/year afterwards Window-Mounted AC Evaporative Units: Up to $150 AC tune-ups: free Room AC Units: Up to $33 ENERGY STAR Refrigerator: $165 ENERGY STAR Freezer: $75 ENERGY STAR Clothes Washer: $110 ENERGY STAR Clothes Dryer: $110 ENERGY STAR Dishwasher: $80 Smart Thermostat: $50
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.epesaver.com/services/residential-low-income/
Applicable Sectors : Low Income Residential
Incentive Amount : See program website for more details.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.epesaver.com/residential-comprehensive/
Applicable Sectors : Residential
Incentive Amount : Air Sealing: $0.075-$0.239 Cool Roofs: $0.10-$0.20/square foot Windows: $1.50-$3.00/square foot Variable Speed Drive Pool Pumps: $300-$450 Smart Thermostat: $50 Evaporative Cooling Units: $600 Insulation: $0.01-$1.05/square foot Duct Sealing: $200/kW + $0.19/kWh Refrigerated Cooling: $85 - $175/ton Ground Source Heat Pumps: $700/unit Solar Screens: $1/sq. ft. Air Infiltration Control: Varies, use utility website calculator Heat Pump Water Heaters: $300/unit Pool Pumps: $300 - $450 Solar Attic Fans: $100/unit Room Air Conditioners: $50/unit
Implementing Sector : Utility
Category : Financial Incentive
Website : https://cnmec.org/cnmec-member-rebates
Applicable Sectors : Residential
Incentive Amount : Refrigerator/Freezer Recycling: $60 Clothes Dryer Rebate: $30 Ventless Hybrid Heat Pump Dryer: $90 LED lamps and LED fixtures: 50% of lamp or fixture cost up to $16 per lamp or fixture Heat Pump Water Heater (air to water): $350 per unit Outdoor Power Equipment Electrification Incentive: $25 - $1,000
Implementing Sector : Utility
Category : Financial Incentive
Website : http://www.xcelenergy.com/Programs_and_Rebates/Residential_Programs_and_Rebates
Applicable Sectors : Residential
Incentive Amount : Lighting: In-store discounts Medium Draw Standard Tank Water Heater: $75 High Draw Standard Tank Water Heater: $75 Tankless Water Heater: $250 Electric Heat Pump Water Heater: $400 Smart Electric Heat Pump Water Heater: $500 Air Sealing Rebate: 30% of project cost up to $150 Attic Insulation Rebate: 30% of project cost up to $350 Wall Insulation Rebate: 30% of project cost up to $300 Furnace: $100 - $400 Boiler: $100 - $400 GSHP: $500/ton, up to $2,500 MSHP: $300 ($600 if replacing electric resistance heat as the primary heat source) Cooling Only Customers Air Sealing Rebate: 30% of project cost up to $15 Attic Insulation Rebate: 30% of project cost up to $60 Wall Insulation Rebate: 30% of project cost up to $25
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pnm.com/bizrebates
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount : Lighting: $0.15-$4.00/unit (see application for details) Occupancy Sensors: $0.15/W Controlled Daylighting Sensor Controls: $0.09/W Controlled Unitary and Split AC: $25/ton, plus $15 bonus efficiency incentive Air-Source Heat Pumps: $40/ton, plus $15 bonus efficiency incentive Chillers: $20-$40/ton, plus $20 bonus efficiency incentive Packaged Terminal AC: $50/ton Packaged Terminal HP: $100/ton Variable Refrigerant Flow HP: $40/ton, plus $25 bonus efficiency incentive Hotel Guest Room Occupancy Sensor: $60/ton per room Indirect Evaporative Cooling: $100/ton Motors: $2-$625/motor Variable Frequency Drives: $50/HP Pool Pump: $100 Food Service Equipment: $100-$1800/unit High Efficiency Ice Makers: $100-$250/unit 3-Phase High Frequency Battery Charger: $200 Custom: $0.080/kWh Horticultural Lighting: $0.60/kWh
Implementing Sector : Utility
Category : Financial Incentive
Website : https://evready.pnm.com/apply/pnm
Applicable Sectors : Commercial, Residential, Multifamily Residential, Low Income Residential
Incentive Amount : Residential Level 2 EV Charger: $500 Income Qualified Customers: Up to $2,000 additional Non-Residential Level 2 EV Charger: $2,500 DC Fast Chargers: $25,000 Income Qualified Properties: Up to $2,500 per port Multifamily Level 2 EVSE: $2,500 Income Qualified Customers: Up to $5,000 charger port
Implementing Sector : Utility
Category : Financial Incentive
Website : https://nmgcgetrebates.com/new-homes-rebates
Applicable Sectors : Construction
Incentive Amount : Water Heaters: $100-$225 Furnaces/Boilers: $200-$300 Smart Thermostat: $50 per Unit Whole Home Measures: Varies
Implementing Sector : Utility
Net Metering
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : http://www.fmtn.org/1089/Solar-Other-Renewable-Facility-Interconn
Applicable Sectors : Commercial, Residential, Low Income Residential
Incentive Amount :
Implementing Sector : Utility
Building Energy Code
Category : Regulatory Policy
Website : https://www.cabq.gov/planning/documents/GreenPathApplicationCriteriaIncentives2011112911.pdf/view
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : https://www.energycodes.gov/status/states/new-mexico
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Interconnection
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government
Incentive Amount :
Implementing Sector : State
PACE Financing
Category : Financial Incentive
Website : http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/PACE.html
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Renewables Portfolio Standard
Category : Regulatory Policy
Website : http://www.nmprc.state.nm.us/utilities/renewable-energy.html
Applicable Sectors : Investor-Owned Utility, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Solar/Wind Access Policy
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, Institutional
Incentive Amount :
Implementing Sector : Local
Solar/Wind Permitting Standards
Category : Regulatory Policy
Website : http://www.rld.state.nm.us/construction/
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Nonprofit, Residential, Schools, Installers/Contractors, Institutional
Incentive Amount :
Implementing Sector : State
Personal Tax Credit
Category : Financial Incentive
Website : https://www.emnrd.nm.gov/ecmd/tax-incentives/solar-market-development-tax-credit-smdtc/
Applicable Sectors : Commercial, Industrial, Residential, Agricultural, Multifamily Residential, Low Income Residential
Incentive Amount : 10% of the purchase and installation costs
Implementing Sector : State
Category : Financial Incentive
Website : https://www.emnrd.nm.gov/ecmd/tax-incentives/sustainable-building-tax-credit-sbtc/
Applicable Sectors : Commercial, Residential, Multifamily Residential, Low Income Residential
Incentive Amount : Varies based on the square footage of the building, the certification level, and additional technological upgrades.
Implementing Sector : State
Category : Financial Incentive
Website : https://www.emnrd.nm.gov/ecmd/tax-incentives/agricultural-biomass-income-tax-credit/#gsc.tab=0
Applicable Sectors : Agricultural
Incentive Amount : $5 per wet ton
Implementing Sector : State
Corporate Tax Credit
Category : Financial Incentive
Website : https://www.emnrd.nm.gov/ecmd/tax-incentives/sustainable-building-tax-credit-sbtc/
Applicable Sectors : Commercial, Residential, Multifamily Residential, Low Income Residential
Incentive Amount : Varies based on the square footage of the building, the certification level, and additional technological upgrades.
Implementing Sector : State
Category : Financial Incentive
Website : https://www.emnrd.nm.gov/ecmd/tax-incentives/agricultural-biomass-income-tax-credit/#gsc.tab=0
Applicable Sectors : Agricultural
Incentive Amount : $5 per wet ton
Implementing Sector : State
Property Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Residential
Incentive Amount : Approximately 100%
Implementing Sector : State
Community Solar Rules
Category : Regulatory Policy
Website : https://csnewmexico.com/
Applicable Sectors : Commercial, Residential, Multifamily Residential, Low Income Residential
Incentive Amount :
Implementing Sector : State
Mandatory Utility Green Power Option
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Public Benefits Fund
Category : Regulatory Policy
Website : https://www.nm-prc.org/utilities/energy-efficiency/
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : http://www.nmenv.state.nm.us/
Applicable Sectors :
Incentive Amount :
Implementing Sector : State
Industry Recruitment/Support
Category : Financial Incentive
Website : https://www.tax.newmexico.gov/forms-publications/
Applicable Sectors : Commercial, Industrial
Incentive Amount : Determined by New Mexico Department of Taxation and Revenue
Implementing Sector : State
Bond Program
Category : Financial Incentive
Website : http://www.emnrd.state.nm.us/ECMD/CleanEnergyTaxIncentives/CREB.html
Applicable Sectors : Schools, State Government
Incentive Amount : Varies
Implementing Sector : State
Energy Efficiency Resource Standard
Category : Regulatory Policy
Website : http://www.nmprc.state.nm.us/utilities/energy-efficiency.html
Applicable Sectors : Investor-Owned Utility
Incentive Amount :
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in New Mexico, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
