Solar Panel Cost Guide in Santa Fe, NM (2023 Update)
- Santa Fe Solar Installation Cost: $10,603
- 25-Year Savings: $28,953
- Payback Period: 6.7 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Santa Fe
Let's take a look at the average cost of solar panels in Santa Fe.
The national average cost of solar panels is $2.66 per watt, but in Santa Fe it's 2.68 per watt. The average Santa Fe homeowner needs a 5.7-kilowatt system, which would cost about $10,599 with the federal tax credit, or $15,157 before the 30% tax credit is applied.
Bear in mind that the figures above are only estimates based on the average energy use of Santa Fe homeowners. The cost of a solar system for your home may look different depending on factors unique to your situation, like your household energy use and solar contractor. For most homeowners, the upfront cost of solar is worth paying. On average Santa Fe homeowners see about $27,000 in savings on energy bills over 20 years.
You can click the button below to get connected with a top solar installer in Santa Fe for a quote for your home.
Solar savings over time in Santa Fe
| Year | Return on Investment |
|---|---|
| 1 years | $-9,522 |
| 3 years | $-7,360 |
| 5 years | $-5,198 |
| 7 years | $-3,036 |
| 9 years | $-874 |
| 11 years | $1,288 |
| 13 years | $3,449 |
| 15 years | $5,611 |
| 17 years | $7,773 |
| 19 years | $9,935 |
| 21 years | $12,097 |
| 23 years | $14,259 |
| 25 years | $16,421 |
Top Solar Installers in Santa Fe
When making the switch to solar, many homeowners prefer to use a solar installer since installing a solar system yourself can be a time-consuming project. A solar installer can also help save you money in the long run by offering warranties, repairs and part replacements.
You can get a free estimate from a local solar installer on the cost of solar panels for your home. Here are some nearby:
See all of the solar companies in Santa Fe
Factors that Affect Solar Panel Costs in Santa Fe
For many Santa Fe homeowners, the decision to adopt solar energy rests on cost. However, the range of solar installation costs can be quite wide in Santa Fe, with typical prices between $20,000 to $40,000. There are several factors that considerably influence the price you'll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the price of a solar energy 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 primarily based on your home's energy usage, which you can gauge by looking at past power bills. Your overall cost can increase by around $2,680 for each additional kilowatt you need. The brand and type of equipment you want for your solar system can increase or decrease the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these often come at a higher price 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
Most solar companies in Santa Fe have solar loans, which reduce your upfront costs of installing a solar system. It's wise to include the interest you'll pay in your final cost estimate. If you can afford to put more money down upfront, you can reduce your total costs and the amount of time it'll take to pay off the loan.
Solar Panel Installation Company
The solar installer you opt for to handle your switch to sustainable energy can play a role in your total costs. There are about 3 solar installation companies operating throughout Santa Fe, and each can charge varying amounts for labor and equipment. Companies that only sell products with high efficiency and therefore a higher price point — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally cost more. It's best to do some research and find a company that offers the products, warranties and services you want and also fits within your budget.
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
There are many solar installers to choose from, all of which offer different warranties, solar panel brands and price points. To help you decide on the right company for you, here are some tips to keep in mind:
- Contract: Before you sign a contract with a solar installer, make sure to read it through fully so you understand the terms. Also, ask questions if you aren't sure about some of the terms, such as what the warranty covers and if there are any guarantees about energy production.
- Installation Process: Make sure you're on the same page with the company with regard to how the installation process will go and what needs to be done before your solar panel system is installed, such as updating your electrical system or roof.
- Reputation: Make sure your solar system installer has a good reputation by confirming it has certifications and licenses, checking its number of years in business and reading reviews by previous customers and solar experts like EcoWatch.
- Solar Panel Brands: The type of solar panel you want plays a part in which installer you should choose, since different companies have access to different panels.
EcoWatch's Santa Fe, NM Solar Cost FAQs
What is the average cost of installing solar panels in Santa Fe?
This is a tough question to answer precisely, because the cost depends on a variety of 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. You can expect to pay more if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy consumption. On the other hand, you can spend less if you choose a smaller solar panel system or less expensive 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.