More than 290 clean days a year on average make New Mexico a perfect place to go solar. Your solar power system will pay for itself a couple of times during its lifespan. And to save even more money, read about solar incentives in New Mexico.
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
If your system is a little too big for your house and produces more energy than you need – it’s actually great news. You can sell that energy with the New Mexico net metering program.
If a system is smaller than 10kW, a utility company can either buy excess electricity from you at the current electricity price or give you credits for the sent kWhs. It is a great opportunity for owners of home installations since most residential solar systems in New Mexico are 5-6kW. If a system is bigger than 1kW, then the surplus energy is purchased at the utility's rate.
Overall, the net metering program allows you to save hundreds of dollars over the year. The rates and special conditions, however, vary from company to company. For example, El Paso Electric warns the customers that a system shouldn’t produce more than 120% of their annual energy consumption to be a part of the Net Metering program. Otherwise, load displacement or separate net metering take place. Contact your electric supplier for the latest numbers and rules.
For generating clean electricity every American can also get Solar Renewable Energy Certificates (SRECs). Unlike with Net Metering, you don’t need to sell any electricity to receive a certificate. One SREC is granted for 1 Megawatt-hour of generated power. A 5kW system can generate over 7 MW over the year, so in theory, it’s possible to get 5-7 SRECs in 12 months if you send all your energy into the grid. You can choose to store or sell these certificates using the WREGIS platform. The lifetime of a Renewable Energy Certificate in New Mexico is 4 years.
The value of SRECs is always changing, which makes them similar to stock market assets. Consult with your installer and utility about participating as all utilities have agreed to keep track of solar energy that the grid receives. To begin storing and trading your credits, you will need an account with Western Renewable Energy Generation Information System (WREGIS).
In New Mexico, solar panels are guaranteed to bring in money. To ensure that, the state established that PV systems don’t increase property asset value, and therefore your property taxes stay the same as if you didn’t have an installation. The exception to the rule are solar elements integrated into windows. But make no mistake: a house with a solar system costs more on the property market. If the property is sold, the value of an installation can be included in future tax assessments.
4%
this is how much solar panels increase the value of your house
In New Mexico, you can also get tax credits if your home or an office is considered a sustainable building. The amount of credit depends on square footage and the level of sustainability and varies from $0.30 to $6.25 per square foot. The program applies both to commercial and residential buildings and ends in 2026. In order to become a part of it, complete an application form and mail it to the Energy, Minerals and Natural Resources department. However, if you already made use of New Mexico Development Income Tax Credit for your solar system, you may not be eligible for this program.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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