Solar Panel Cost Guide in Santa Fe, NM (Feb 2023)
- Santa Fe Solar Installation Cost: $10,599
- 25-Year Savings: $28,957
- Payback Period: 6.7 Years
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Updated January 20, 2023
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Average Cost of Solar Panels in Santa Fe
We break down average solar pricing in Santa Fe.
The national average cost of solar panels is $2.66 per watt, but in Santa Fe it's $3 per watt. Using this figure, a typical 5.7 would cost about $10,599 before the 30% federal solar tax credit is applied.
The prices above are just estimates to give you an idea of the cost of a solar energy system. The exact cost of making the switch to solar can vary quite a bit depending on a few factors, such as how many panels you need, your energy usage and what company you go with. But, after you've paid the upfront cost of installation, the return on investment for most homeowners is usually fruitful, with a net average savings of about $27,000 over 20 years on energy bills.
You can click the button below to get connected with a vetted solar installer in Santa Fe that can help you get a more accurate cost estimate for your home.
Solar savings over time in Santa Fe
| Year | Return on Investment |
|---|---|
| 1 years | $-9,017 |
| 3 years | $-5,853 |
| 5 years | $-2,688 |
| 7 years | $476 |
| 9 years | $3,641 |
| 11 years | $6,806 |
| 13 years | $9,970 |
| 15 years | $13,135 |
| 17 years | $16,299 |
| 19 years | $19,464 |
| 21 years | $22,628 |
| 23 years | $25,793 |
| 25 years | $28,957 |
Top Solar Installers in Santa Fe
DIY solar panel installation is a possibility, but it's an undertaking that can be a headache. Taking advantage of an installer can make your switch to solar power much easier. Also, companies with a high reputation that cost more upfront could actually save you money in the long term due to their warranties, repair services and expert design.
If you're searching for a solar company in Santa Fe, we've compiled a list of our top suggestions here:
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
Best Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
See all of the solar companies in Santa Fe
Factors that Affect Solar Panel Costs in Santa Fe
While the average cost of a solar system in Santa Fe is $10,599, your final cost may be higher or lower than that. There are quite a few factors that can have a major impact on the cost of a solar panel installation. Below are some of the more important things to keep in mind.
Solar Equipment
When it comes to estimating the cost of a solar system in Santa Fe, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are largely based on your home's energy usage, which you can figure out by looking at past energy bills. Your overall cost can increase by about $2,680 for each additional kilowatt you need. The brand and kind of equipment you choose for your solar system can raise or lower the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these are often more expensive than other brands. Efficiency also matters. Whether you're opting for high efficiency because you have a small roof or just want maximum energy production, you will be looking at a higher equipment cost, but this can typically lead to greater savings over time. Plus, if you want add-ons like an electric vehicle charger or solar batteries, this will also increase the cost.
Solar Financing Terms
For some homeowners, paying for solar out of pocket can be financially overwhelming. Solar loans are offered by most installers in Santa Fe, which can lower, or in some cases totally eliminate, your upfront costs to make solar more accessible. However, the interest on solar loans also increases your overall costs, so it's important to take that into consideration as well. You can always reduce the total you pay in interest and sometimes even your APR by making a larger down payment.
Solar Panel Installation Company
The solar installation company you pick will play a role in your total cost to adopt solar energy. Different companies will charge different amounts for the equipment and labor. The size of the company sometimes plays the most significant role in your total costs. Larger national companies, like SunPro and Sunrun, often have lower pricing due to access to greater resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or promotion can bring their pricing down to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.79 | $11,706 | $30,285 | 7.0 years |
| 8 kW | $2.73 | $15,308 | $40,680 | 6.8 years |
| 10 kW | $2.68 | $18,760 | $51,226 | 6.7 years |
| 12 kW | $2.63 | $22,062 | $61,921 | 6.6 years |
| 14 kW | $2.57 | $25,213 | $72,767 | 6.4 years |
| 16 kW | $2.52 | $28,215 | $83,762 | 6.3 years |
| 18 kW | $2.47 | $31,067 | $94,908 | 6.2 years |
| 20 kW | $2.41 | $33,768 | $106,204 | 6.0 years |
How to Save on Solar Panels
Since the brand of solar panels and the installation company you choose has an impact on your costs and your system's efficiency, production, and durability, it's important to select the right ones for you. Here are some tips to keep in mind to help with your decision:
- Installation Process: Homeowners should make sure they know how exactly the installation process will be carried out, as well as important factors like the completion timeline.
- Contract: When reading over your solar installer's contract, ask for clarification about any terms you're not sure of and make sure you understand what happens in scenarios such as a system part breaking or the company going out of business.
- Solar Panel Brands: Different companies will offer various brands and types of panels. If you want a specific brand, make sure the solar panel company you're considering has it.
- Reputation: Solar installers that have great reviews from their customers and that have been in business for many years in most cases offer high-quality solar panel installation and expertise.
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
Best Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
EcoWatch's Santa Fe, NM Solar Cost FAQs
What is the average cost of installing solar panels in Santa Fe?
This is a difficult question to answer precisely, because the cost depends on many factors. Broadly speaking, it costs about $13,400 for a 5-kW system and $26,800 for a 10-kW system after the ITC is applied. It will be more expensive if you want additional solar equipment or more efficient panels, or if you have above-average energy needs. Conversely, you can spend less if you want a smaller solar panel system or cheaper solar panels.
Is it better to lease or buy solar panels in Santa Fe?
Leasing solar panels can be an option if you can't 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 property 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 my property value?
Solar panels can increase the value of your property by about 4%, according to research done by Zillow. The average home value in Santa Fe is currently $321,943, so you can expect a value of about $13,200 more than houses without a solar system. The specific figures will vary, but most experts agree that installing solar panels in Santa Fe is a fruitful investment.
How many solar panels should I get to power my home?
To figure out how many solar panels you need, you need to know how much energy your home requires and how much sunlight your home gets. For a general estimate, however, since each panel can generally produce about 250 to 400 watt-hours per hour, the average house will need 20 to 35 panels.
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.