New Mexico homeowners can significantly reduce their energy bills and costs for a solar array. See how below.
The Federal Tax Credit Applies To New Mexico Residents (26 Percent of Solar Array)
The federal tax credit, also known as the Investment Tax Credit (ITC), covers 26 percent of solar installed between 2021 and 2022. An average 5 kW system would save $3,900.
New Mexico Solar Tax Credit (10 Percent of the Array)
The New Solar Market Development Income Tax Credit deducts 10 percent of the solar array cost, with a cap of $6,000 through the solar array owner's state taxes. If the taxpayer doesn't owe this amount in state taxes, it can roll over for up to five consecutive years. A homeowner purchasing an average priced 5 kW system would save about $1,500.
100 Percent Property Tax Exemption (About 4.1 Percent of Solar Home Value Each Year)
According to a 2019 Zillow study, homes with solar panels increase in value by about 4.1 percent. Added value helps homeowners get more out of the house when they're ready to sell, but it also adds to the property taxes owed each year. Thankfully, New Mexico has a 100 percent property tax exemption for solar.
The average New Mexico property tax rate equals 0.780 percent, meaning median property taxes equate to $1,403. If solar adds 4.1 percent, the median home value would increase by $7,374.75 and save $57.52 a year in property taxes. If the home's value never fluctuated, the homeowner would save $1,438 over 25 years — an average solar warranty length.
PNM Renewable Energy Credit Incentive — ($78-Plus)
The PRC approved the 2021 PNM Renewable Energy Credit (REC) program. This program benefits those who produce enough solar energy each month to cover the extra $100 that PNM charges REC-opting customers, which equals over 417 kW a month.
The average residential system size, 5kW, produces about 745 kWh a month in Albuquerque, NM, saving solar customers $78.80. Customers can save even more by taking advantage of the appliance update rebates, lighting discounts and the Power Saver program that PNM offers.
Pay Off the Rest of Your System With Referrals ($500 To Infinity)
Earn $500 by referring a lead who results in a successful installation. Join our Sun Share Program today and make your earning potential limitless with our uncapped referral program.
Don’t Want Solar, but Know Someone Who Does? We Can Pay You for That, Too!
Total 5 kW Solar Cost Savings: $7,416 or More
This savings calculation only looks at cost savings. To discover how much solar will save, compared to your utility, start a solar quote.