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Solar Panel Cost in New Mexico (2024 Local Savings Guide)
In this EcoWatch guide on the solar panel costs in New Mexico, you’ll learn:
- What the average cost of going solar in New Mexico is
- How solar system sizes affect installation costs in New Mexico
- How New Mexicans can save money when going solar
This guide has helped thousands of New Mexico homeowners save time and money when going solar by teaching them exactly what affects installation costs in the Land of Enchantment. Let’s get started!
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What Is the Cost of Solar Panels in New Mexico?
Solar panels are often priced on a per-watt basis, which averages out to around $3.45 in New Mexico, which is a bit higher than the national average of $3.33. Most homeowners in NM need a 7-kilowatt system to offset their energy needs, which brings the total solar cost to an average of $24,150, or $16,905 after you consider the federal tax credit.
Given the relatively low energy needs and low electricity rates in New Mexico — the average electric bill is just $98 per month — some homeowners wonder if going solar will pay off. Thankfully, the low cost of going solar coupled with the above-average sun exposure makes solar a sound investment for most New Mexico residents.
NM Solar Group
Oustanding Local Installer
Local Service
Average cost
Pros
- Offers products from leading manufacturers
- Outstanding customer service
- Makes charitable contributions
- Competitive pricing
Cons
- Slightly limited service offerings
- Relatively young company
Blue Raven Solar
Best Solar Financing
Pros
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
Cons
- Doesn't offer solar batteries (coming 2022)
OE Solar
Solar Veteran
Regional Service
Average cost
Pros
- Many years of experience
- Comprehensive service offerings
- Outstanding customer service
Cons
- No leases or PPAs
- Limited brands of solar equipment available
How Do System Sizes Affect Solar Costs in New Mexico?
Since solar panel systems are priced based on watts, larger system size requirements will naturally yield higher total costs. Each kilowatt you need above the standard 7-kW system will add about $3,450 to your costs. The table below provides some average prices for typical system sizes in New Mexico.
| Size of Solar Panel System | New Mexico Solar Panel Cost | Cost After Federal Tax Credit |
| 4 kW | $13,800 | $9,660 |
| 5 kW | $17,250 | $12,075 |
| 6 kW | $20,700 | $14,490 |
| 7 kW | $24,150 | $16,905 |
| 8 kW | $27,600 | $19,320 |
| 9 kW | $31,050 | $21,735 |
| 10 kW | $34,500 | $24,150 |
Want to see what system size you need and get a free quote for an affordable, high-quality system? Click the following link to get connected with the best solar companies in New Mexico.
See also: Calculate the costs and savings you can get from installing solar panels
Watch Below: Learn How Solar Energy Storage Works and Whether It’s RIght For You
What Determines the Cost of Solar Panels in New Mexico?
The average price of a solar panel system in New Mexico is around $16,905 after the federal tax credit is considered. Your cost is likely to fall between $9,660 and $24,150, which we understand is quite a large range. Where in this range your system falls is dependent on many factors, the most prominent of which we’ll discuss below.
Solar Equipment
As is the case with any home improvement project, the materials you choose to install for your solar energy system will have a significant impact on your cost.
One consideration to make is the efficiency of the panels you install. In some low-sunlight areas, high-efficiency panels are required in order to offset energy consumption. This drives up the average price of solar installations in those areas. Luckily, New Mexico residents enjoy an incredible 310 sunny days per year, which is more than 150% of the national average.
More affordable panels with a lower efficiency typically suffice in New Mexico, which means the overall cost of solar panel systems in the area tends to be lower.
Aside from excessive heat in the summer, New Mexico isn’t particularly prone to extreme weather, which means a relatively low risk of power outages. In areas that experience hurricanes, tornadoes or other severe weather events, solar batteries are recommended to maintain power through the frequent blackouts.
Luckily, New Mexicans can avoid paying thousands of dollars extra for add-on equipment like solar batteries, again contributing to a lower overall cost of going solar.
Solar Financing in New Mexico
Paying for your solar panels can be done in several ways, and the option you choose can influence what you pay for your system. The baseline price of your equipment and installation is what you’ll pay with a cash purchase, although this option comes with very high upfront costs.
A solar loan eliminates those upfront costs entirely in some cases, but you’ll end up paying more for your system in the long run because of the interest. You could also opt for a solar lease or power purchase agreement (PPA), but these options save you the least over time and effectively cost more than paying with cash or a solar loan.
New Mexico provides several affordable financing options for solar equipment to make it more accessible. The Property-Assessed Clean Energy (PACE) program is available for homeowners and business owners to reduce the all-in costs of solar loans.
Additionally, the SOL Fund from Homewise is available for low-income households in New Mexico, which makes solar more affordable upfront and in the long run.
New Mexico Solar Installation Company
Every solar company in New Mexico will provide a different total price estimate for your panel installation. These estimates vary based on differences in labor charges and equipment prices, even if the companies are installing the same equipment.
Every provider brings a unique cost, quality of service and warranty to the table, so choosing the right company for your budget and energy needs is crucial.
Just as an example, NM Solar Group, one of the best solar installers in New Mexico, is a local provider that offers panels from Solaria, Tesla and Panasonic (to name a few). Some of these options are very affordable and will fit into just about any budget.
On the other hand, SunPower, a national provider that operates in the state, only installs its own panels — Maxeon panels from its sister company. The Maxeon panels are considered the best in the industry but are also quite expensive.
It’s important to choose your installer based on both price and value for this reason. SunPower would likely be a more expensive option, but you also get superior quality and a better warranty than you would with a local company. In either case, the installer you choose can swing your total price up or down drastically.
Additional Considerations and Costs
While the factors above are among the most important things you should consider when assessing the price of solar in New Mexico, there are some additional considerations you should take into account.
- Permits: Before installing a solar panel system on your home, you need to have the proper building and electrical permits in place. Each municipality handles its own permits, and in most cases, your solar installer will file the permits for you.
- Interconnection: An interconnection agreement is basically a permit that’s required by your utility company. As with permits, your solar installer will file the agreement for you, but be aware that utility companies can charge anywhere from $25-$500 for interconnection. Be sure to ask your solar company about your utility’s interconnection policy before signing a contract.
- Warranties: Most solar panel systems in New Mexico come with warranties that last anywhere from 10 to 30 years, on average. The best warranties cover the performance of your panels, the installation process and the equipment itself. Companies with high-quality warranties are more likely to charge more for an installation upfront.
- HOAs: New Mexico protects the solar rights of all homeowners, so there is legislation in place that prohibits municipalities and HOAs from denying permission to install solar.
- Environmental zoning: The zoning laws in New Mexico can sometimes restrict ground-mounted panels, but in most cases, you should have no problems installing a rooftop solar system.
How Can You Save Money With New Mexico Solar Incentives?
The prospect of spending an average of $24,150 on a solar system in New Mexico might turn many homeowners away from solar altogether. However, the state and federal governments provide several rebates, tax incentives, and other programs to entice New Mexico residents to convert to clean energy. We’ll discuss New Mexico’s most beneficial solar incentives below.
Federal Solar Tax Credit
The federal solar investment tax credit (ITC) is the most appealing benefit to going solar for most homeowners. This incentive is offered to individuals throughout the country, and the credit scales with your system size.
You’ll get a credit of 30% of your total system cost if you install it anytime through 2032. In New Mexico, that’s an average amount of $7,245! Your effective total will drop from an average of $24,150 to an average of $16,905.
The federal tax credit will drop to 26% for systems installed in 2033 and 22% in 2034 before expiring completely in 2035, unless renewed by Congress.
Net Metering
Net metering is a policy mandated by many state governments, including New Mexico. The policy requires utility providers to credit you in some way for overproduction. This policy exclusively benefits the homeowner. If your system generates more power than you’re using, you send the excess to the electric grid. If it underproduces for what you’re using, you can pull energy from the electric grid at a discounted rate for any prior overproduction.
In New Mexico, all utility companies subject to Public Regulation Commission (PRC) jurisdiction are required to offer net metering. Some can credit customers at a rate slightly lower than one-to-one, but most homeowners still benefit greatly.
Individual electric companies can vary in the credit rate and specifics. For example, PNM Resources in Albuquerque offers one-to-one credits that rollover from month to month. El Paso Electric Company uses a time-of-use (TOU) credit system that is slightly less beneficial in most cases. Xcel Energy has one of the most appealing policies, which offers one-to-one credits and pays you for excess energy production over time.
Watch Below: PNM’s Technical Program Manager in Renewable Energy Discusses Net Metering
Local Solar Rebates
In case the federal tax credit and the net metering policies weren’t enough incentive, New Mexico also offers some appealing state incentives.
First, the Solar Market Development Tax Credit is a state tax credit in the amount of 10% of your total system cost, on top of the federal tax credit. In New Mexico, this averages out to an additional savings of $2,415.
Second, the Gross Receipts Tax Exemption is a sales tax exemption that prevents homeowners from having to pay sales tax on solar and renewable energy equipment. In New Mexico, where the state sales tax rate is 5.125%, that’s an additional average savings of $1,237. This is less appealing than the tax credits, but it’s still a huge deal.
Third, New Mexico offers a Property Tax Exemption, which can end up saving you thousands of dollars over time. Most home improvements that improve the value of your home also bump up your property taxes. While installing solar will increase your home value, the exemption guarantees that your taxes won’t go up as a result.
Finally, New Mexico has a slew of other local easement laws, solar rebates and energy-efficiency tax credits for new construction and commercial solar customers (such as the sustainable building tax credit). You can check the DSIRE database to find out if there are additional benefits you can enjoy.
Also Read: What Are Renewable Energy Certificates (RECs)?
The Best Solar Panel Brands Available in New Mexico
Given the popularity of solar power systems in New Mexico, you’ll have plenty of equipment brands to choose from. Below is a list of some of the best solar panel brands available, as well as relative pricing to help you decide which might be right for your budget.
| Solar Panel Brand | Average Cost Per Watt ($-$$$$$) |
| LG Solar | $$$ |
| Canadian Solar | $$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
Ready to see what size solar panel system you need and what your equipment will cost? You can get a free, no-obligation quote from a local installer by checking out our preferred partners below.
Read More About Going Solar
- Is it Worth Going Solar in New Mexico?
- Best Solar Companies in New Mexico
- What Should You Know About New Mexico’s Solar Market?
The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.
FAQs: Solar Panel Cost New Mexico
The EcoWatch team gets lots of questions about going solar from New Mexico homeowners. Below are some of the ones we see most often that you might be wondering about as well. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
Solar panel installation cost depends on quite a few factors, so it’s impossible to say with certainty what you will pay without completing a full home assessment. Solar installers take many things into consideration when pricing out your system, including your average monthly energy bills, your home size, the direction your roof faces, shading on your property, and much more.
With that being said, most New Mexico residents need a 7-kilowatt system to offset their energy bills. At an average cost of $3.45 per watt in the area, that’s a typical total of $24,150 before the federal tax credit or $16,905 after the credit.
Yes, absolutely! A bump in your home value is one of the most significant benefits of going solar in New Mexico. A nationwide study done by Zillow concluded that solar boosts property value by an average of 4.1%. Given the average home value of $291,722 in New Mexico, that comes out to a typical value bump of around $11,960! Value increases are expected to be even more substantial in more costly areas, like Santa Fe. The Property Tax Exemption also guarantees that that bump in value won’t increase your property taxes.
It’s crucial to understand that this value increase will only be enjoyed if you buy your home solar system outright or finance it. Solar leases and Power Purchase Agreements (PPAs) won’t cause your property value to increase.
We always suggest that homeowners use a cash purchase or solar loan to go solar. Solar leases might seem appealing, but many loans provide similar upfront payments and give you access to many additional benefits that leases don’t.
For example, a solar lease won’t let you take advantage of the federal tax credit, so you’ll miss out on a potential average savings of $7,245. Leases also don’t let you enjoy the other local benefits, like the Development Tax Credit.
Most importantly, your property value won’t increase if you lease your equipment. That means you’ll miss out on a bump in property value of about $11,960, on average.
No, never. Companies advertising “free panels” are usually just trying to get you to sign a solar lease, which is more beneficial to them than it is to you.
However, many homeowners in New Mexico find that their systems pay for themselves. Not only will you enjoy a boost in property value, but you’ll also save on electric bills and reduce your utility costs over time. Many NM residents effectively get paid to go solar.
Yes, it is possible to reduce your electric bills to $0 in New Mexico, and it’s actually quite easy. New Mexico residents enjoy average solar equipment costs, but they have the benefit of a great statewide net metering program and abundant, intense sunlight. Provided your roof is large enough to fit the system size you need, you shouldn’t have too much of an issue eliminating your electric bills.
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Cons
BBB Rating
Year founded
Service Area
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- Offers products from leading manufacturers
- Outstanding customer service
- Makes charitable contributions
- Competitive pricing
- Slightly limited service offerings
- Relatively young company
A+Oustanding Local Installer
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