Maximize Savings with Solar in New Mexico
Clean Power, Lower Costs, and Big Incentives
When it comes to annual sunshine hours and solar energy potential, New Mexico ranks among best. At number 14, it is in the top half of all states for the generation of solar electricity, so it is not an exception to the trend of solar installations becoming more and more popular in recent years. New Mexico offers extra benefits to significantly offset the upfront expenses of the solar system, even if the return on investment in solar energy relies on how much sunlight your home receives and your energy usage habits. New Mexico has an average electricity price of 14.03 cents/kWh, according to the latest data from the U.S. Energy Information Administration. Considering this tariff, 11,000 kWh of solar generation can save you up to $1,543 per year.
For many people, going solar in New Mexico is a wise investment because of policies like net metering, sustainable building tax credits, property tax exemptions, and state solar tax credits in addition to the federal solar tax credit. Let’s have a look at the solar incentives in New Mexico to reduce the upfront cost of installing solar and make solar energy affordable for New Mexicans.
New Mexico Solar Incentives
If you live in New Mexico, you may take advantage of several incredible rebates that can significantly increase the return on your solar panel investment. These tax credits are among the most effective methods to reduce your solar energy expenses.
Residential Clean Energy Credit
You can cut the cost of your solar panel installation by 30% with the help of the Residential Clean Energy Credit, formerly known as the Federal Investment Tax Credit (ITC). This incentive applies to your complete system, including labor, permits, sales tax, and equipment. You can claim this incentive as a credit toward your federal tax bill when you file your federal income taxes. Just remember that leasing a system would exclude you from the ITC; you must pay cash or obtain a solar loan to purchase your system.
Solar Market Development Tax Credit
Solar owners can receive a tax credit of up to $6,000 through the Solar Market Development Tax Credit (SMDTC), which is equal to 10% of the cost of labor, materials, and equipment for a solar energy system. To qualify for this tax credit, you need to take approval for your solar energy systems from the Energy, Minerals, and Natural Resources Department (EMNRD) of New Mexico. The financing for this program is set at $12,000,000, which means that applications will not be accepted for that year until the state grants $12,000,000 in tax credits. Nevertheless, House Bill 252, which is anticipated to take effect in 2024, increases the annual aggregate ceiling to $30,000.
Sustainable Building Tax Credit (SBTC)
If you install solar on your home as part of your sustainable building efforts, you can receive a tax credit through the Sustainable Building Tax Credit (SBTC). Your home must have a U.S. Green Building Council sustainable certification in order to be eligible, and the credit’s worth is based on the degree of your certification. The Solar Market Development Tax Credit (SBTC) cannot be claimed with solar panel installations that are utilized to claim the SMDTC.
Explore your Solar Savings in New Mexico
New Mexico Solar Property Tax Exemption
Your property’s value will rise with the installation of a solar system, but there won’t be any additional tax costs. Any newly installed solar energy system in New Mexico is free from property tax assessment due to the Renewable Energy Property Tax Exemption. This substantial incentive may reduce the time until you begin to earn a net positive financial return and help you recoup the cost of your solar system.
Solar Net Metering In New Mexico
One of the best solar panel incentives in New Mexico is net metering, which you may take advantage of if you connect your system to the grid. When you send extra energy from your solar panels back into the grid, you get credits under net metering. Your utility will apply the credits to your bill when you need to use the grid to get electricity when the sun isn’t shining. With solar panels, net metering ensures that you owe very little or nothing for electricity.
In New Mexico, regulated electric companies are bound to enable net metering for solar panel systems under 10 kW, while municipal utilities are not required to offer it. Up to 100% of your utility’s electricity usage, you will receive credits under New Mexico’s net metering program, valued at the retail rate of electricity for each kWh of electricity your system generates. You will receive credit for your surplus generation at the avoided cost rate if you supply the grid with more electricity than you consume.
SolarSME Installation Services In New Mexico
Ready to switch to solar and take advantage of New Mexico’s incentives and rebates? SolarSME is your local solar partner to answer your questions, guide you through the process, and help you make the most of your solar investment.