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New Mexico Solar Incentives

With Sunrun, You Can Maximize Your Solar Potential

#2

New Mexico is the second sunniest state in the nation.1

-45%

New Mexico solar price drop over the last five years.2

100%

State electricity generation that will come from renewable energy sources by 2045.3

New Mexico basks in an average of 293 sunny days per year,4 which is just one of several reasons to go solar in the Land of Enchantment. The state also has some of the best solar incentives in the country, such as federal and state solar tax credits,* Solar Renewable Energy Credits (SRECs), as well as property and sales tax exemptions.5

As the U.S.’s leading residential solar and energy storage company,6 Sunrun works to ensure you can create and store your own solar energy at home to get outage protection and reduce your carbon footprint while enjoying New Mexico’s solar incentives.

Solar Incentives, Tax Credits, and Rebates in New Mexico*

Incentive

Value

Inflation Reduction Act (IRA)**

Qualified homeowners with home solar could be eligible for a tax credit of up to 30% against the cost of the system.

New Solar Market Development Income Tax Credit

The 10% state solar tax credit is available for purchased home solar systems in New Mexico. (Max. $6,000 tax reduction.)8

Solar Renewable Energy Credits (SRECs)

El Paso Electric Company (EPE) and Public Service Company of New Mexico (PNM) customers can get compensation per kilowatt-hour (kWh) produced by their systems.9,10,11

Solar Energy System Property Tax Exemption

Property tax exemption on the added home value from the rooftop solar system.12

Solar Installation Sales Tax Exemption

5.125% home solar system state sales tax exemption.13,14

New Mexico Sustainable Building Tax Credit (SBTC)

Tax credit for new constructed homes with solar panels. (2,000 sq. ft cap.)15

Find out If You Qualify for New Mexico Solar Incentives

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Learn the Details of New Mexico Solar Incentives

Buy and install new solar panels in New Mexico in 2021, with or without a home battery, and qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.7

Average-sized 5-kilowatt (kW) system cost in New Mexico: $12,790 Approximate system cost in NM after the 26% ITC in 2021: $9,46516

Buy and install a new rooftop solar panel system in New Mexico and qualify to receive a 10%state income tax credit of the total cost, thanks to the New Mexico Solar Tax Credit. (Max. $6,000 state tax reduction)8

According to the NM Energy Conservation and Management Division (ECMD), state taxpayers who install a solar thermal or photovoltaic system on or after March 1, 2020 are eligible for this non-refundable tax credit on a first-come, first-serve basis.8

If you’re an EPE or PNM customer, you can earn SRECs or Renewable Energy Certificates (RECs) for every kilowatt-hour (kWh) of solar energy your system creates in New Mexico based on market value.9,10,11

Add a new solar panel system to your New Mexico home and your property taxes won’t go up.12 Installing a system may also help you build home value.

When you buy a new solar power system in New Mexico, you won’t pay sales tax on the system.13 The exemption is for 100% of the sales tax of a solar installation used to provide space heat, hot water, or electricity to your home. This can save you 5.125% right off the bat.14

Qualify for up to $6.50 per built sq. ft with a 2,000 sq. ft cap when you install a new home solar system. In order to qualify, your home needs to be certified sustainable by the U.S. Green Building Council.15

Going Solar with Plenty of Perks and Options—What's Not to Like?

Our home solar plans, with or without energy storage, in New Mexico start at $0 down. What's more, EPE, PNM, and Xcel Energy offer net energy metering (NEM) programs that could let you earn credits on your bill for the excess solar power you produce and send to the grid.9,10,17,18 Net metering in New Mexico can give you more control over electricity bills.

There hasn’t been a better time to make the switch with a New Mexico solar company like Sunrun. To find out if our solar and storage solutions are right for your energy needs, use our Product Selector or request a free quote to get one-on-one service from our expert Solar Advisors.

Go solar today

the federal tax credit schedule from 2021 to 2024 chart. 26% federal tax credit in 2021 & 2022, steps down to 22% in 2023 and ends in 2024
  • Learn about the federal tax credit
  • Find your ideal system and battery
  • Get your cost to make the switch

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DISCLAIMERS:

*We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.

**We recommend contacting a tax professional to most accurately determine the impact tax credits may have on your federal taxes.

 

SOURCES:

  1. New Mexico annual sunshine state rank
  2. New Mexico solar price drop
  3. New Mexico clean energy goals
  4. New Mexico sunny days per year
  5. New Mexico solar tax credits and rebates
  6. Sunrun ranked as leading residential solar-plus-storage vendor
  7. Federal Solar Investment Tax Credit (ITC)
  8. New Mexico New Solar Market Development Income Tax Credit
  9. El Paso Electric Company (EPE) Solar Renewable Energy Certificates (SRECs) and net energy metering (NEM) program for home solar systems up to 10kW
  10. EPE SRECs and NEM program for home solar systems over 10kW
  11. Public Service Company of New Mexico (PNM) Solar Renewable Energy Certificates (SRECs)
  12. New Mexico solar property tax exemption
  13. New Mexico sales tax exemption
  14. New Mexico state tax
  15. New Mexico Sustainable Building Tax Credit (SBTC)
  16. New Mexico solar panel costs
  17. PNM NEM program
  18. Xcel Energy NEM program