Solar Panel Cost Guide in Hobbs, NM (2024 Update)
- Hobbs Solar Installation Cost: $15,018
- 25-Year Savings: $16,559
- Payback Period: 14.0 Years
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Average Cost of Solar Panels in Hobbs
Here’s how much it might cost to make the switch to solar in Hobbs.
In Hobbs, solar panels cost about 4 per watt on average.The average Hobbs homeowner needs a 5.5-kilowatt system, which would cost about $15,018 with the federal tax credit, or $21,476 before the 0 tax credit is applied.
Remember that the numbers above are only averages. The price you’ll pay for solar may vary based on your household energy use, the type of solar panels you want to get, your solar contractor and more.Even with the large upfront cost, the average Hobbs homeowner can save around $19,000 on their power bills over 20 years, which is one of the positives of solar.
To receive a free quote from a vetted solar installation company in Hobbs, you can click the button below.
Solar savings over time in Hobbs
| Year | Return on Investment |
|---|---|
| 1 years | $-14,254 |
| 3 years | $-12,726 |
| 5 years | $-11,199 |
| 7 years | $-9,671 |
| 9 years | $-8,143 |
| 11 years | $-6,615 |
| 13 years | $-5,088 |
| 15 years | $-3,560 |
| 17 years | $-2,032 |
| 19 years | $-504 |
| 21 years | $1,023 |
| 23 years | $2,551 |
| 25 years | $4,079 |
Top Solar Installers in Hobbs
Trying to install solar panels on your own can be a challenging undertaking, which is why using a solar installer is a good option for many homeowners. Solar companies provide key benefits that can help you get the most out of your investment, like warranties, monitoring and free repairs.
If you're on the hunt for a solar installer in Hobbs, we've compiled a list of our top suggestions here:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in Hobbs
Factors that Affect Solar Panel Costs in Hobbs
Cost is usually one of the most important factors for homeowners wanting to invest in solar. There are a few key factors that will push your cost above or below the average in Hobbs: solar equipment and system size, financing options and the solar installation company you choose. We’ll discuss each of these briefly below.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to a variety of factors. One of the major factors is the system size, which is measured in kilowatts (kW). Solar power systems with higher efficiency or power production need better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $3,930.The kind of solar panels and equipment you choose is another factor that will largely influence costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to cost more. Moreover, solar equipment goes beyond just the solar panels themselves. You’ll also need to decide on the kind of racks used to mount the panels, inverters, solar batteries, etc. It’s important to take all of this into consideration when researching a solar system that’s in your budget.
Solar Financing Terms
Many homeowners find the average cost of solar in Hobbs to be prohibitively expensive, even if the investment pays off over time. Fortunately, nearly every solar company in the area provides access to financing options. Solar loans greatly decrease upfront costs in most cases, but they also lead to a higher cost over time due to interest.Even though solar loans make going solar more accessible for Hobbs homeowners, they can also raise the total you pay for your system, depending on your interest rate and how long you take to pay off the loan. If you put down a larger down payment, though, you can cut back on how much interest you have to pay.
Solar Panel Installation Company
The final key cost factor you should take into consideration is the installer you choose. Given the massive popularity of clean energy solutions in Hobbs, you’ll have plenty of options to choose from, but each comes at various price points for labor and equipment.You may see national solar installers that have lower prices because of their larger brand name and access to bulk equipment prices, or you might see small, local installation companies offering deals or promotions to compete with those major players.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $4.09 | $17,166 | $12,289 | 14.6 years |
| 8 kW | $4.01 | $22,448 | $16,825 | 14.3 years |
| 10 kW | $3.93 | $27,510 | $21,582 | 14.0 years |
| 12 kW | $3.85 | $32,352 | $26,558 | 13.7 years |
| 14 kW | $3.77 | $36,973 | $31,755 | 13.4 years |
| 16 kW | $3.69 | $41,375 | $37,172 | 13.2 years |
| 18 kW | $3.62 | $45,557 | $42,808 | 12.9 years |
| 20 kW | $3.54 | $49,518 | $48,665 | 12.6 years |
How to Save on Solar Panels
There are numerous companies to choose from in Hobbs, and some homeowners feel overwhelmed considering their options. Selecting the right company for you can be tough, so here are some tips to help you decide:
- Warranty: A comprehensive, long-term warranty can help keep your solar system running for years to come and save you money on repairs and maintenance.
- Installation Process: When going solar, it’s important to maintain an open line of communication with your solar company. See to it that you understand how the installation process will go and the project timeline.
- Contract: When reading through your solar installer’s contract, ask for clarification about any terms you’re not sure of and be sure you understand what happens in scenarios such as a system part breaking or the company going out of business.
- Reputation: Make sure your solar panel installer has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by past customers and solar experts like the EcoWatch team.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
EcoWatch's Hobbs, NM Solar Cost FAQs
How much does it cost to install solar panels in Hobbs?
This is a tough question to answer precisely, because the cost depends on many factors. Generally speaking, it costs about $19,650 for a 5-kW system and $39,300 for a 10-kW system after the ITC is applied. It will be more expensive if you want extra solar equipment or higher quality panels, or if you have higher-than-average energy usage. Conversely, you can spend less if you choose a smaller solar panel system or less efficient solar panels.
Should I lease or buy solar panels in Hobbs?
Leasing solar panels can be an option if you can’t afford to pay upfront or get a solar loan, but since you don’t own the system, you don’t have access to many solar incentives. Also your home value won’t increase, so you’ll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most savings from going solar.
How will installing solar panels impact how much my home is worth?
Installing solar panels on your home can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Hobbs is currently $178,950, so you can look forward to a value of about $7,337 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Hobbs is a worthwhile investment.
How often do you have to replace solar panels?
Though the average lifespan of solar panels is 25 to 30 years, that doesn't mean they should be disposed of at that time. What this means is the amount of energy they produce will have decreased significantly after that point. You can opt to replace them once you've had them for that long or you can continue to use them at a lower efficiency.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.