New Mexico is one of the excellent states in the country for property owners to invest in a solar energy system. With 98.04% of the abundant sunshine the Land of Enchantment receives yearly, ranking #2 as the sunniest state in the U.S., going solar is brighter than ever!
New Mexico also provides the finest solar incentives in the country, which property owners can take advantage of and economize.
Learn more about New Mexico solar incentives and rebates for property owners who want to invest in a solar energy system.
New Mexico has substantial and stable net metering laws, which are a bonus for property owners. Net metering connects your solar panels or other renewable energy generators to the public utility, enabling you to offset the cost of the power you use from the utility by applying credits you've earned through your home energy system. Any excess energy your system generates is sold to the grid, and you receive a credit on your power bill.
Most property owners hope for an open, streamlined, reasonable, and foreseeable scheme for connecting to the grid. Interconnection standards dictate how solar and other electrical generation systems can connect to the grid, allowing them to "plugin" seamlessly. The criteria in New Mexico are among the best in the nation.
New Mexico solar tax credit is the most significant New Mexico solar incentive for property owners installing solar panels. The solar tax credit is good for 10% of your solar power system's purchase price and installation, up to $9,000. You can deduct the amount directly from your tax payment, like receiving cash, making it a more valuable credit than a mere deduction from your taxable income.
New Mexico is one of many states that offer PBIs. PBIs are solar incentives based on your system's power, and New Mexico calls them Solar Power Performance Payments. You get paid based on your renewal energy system's kilowatt-hours (kWh) or BTUs. Solar Renewable Energy Credits (SRECs) are earned by generating solar power, and their value varies depending on market supply and demand. SRECs can be a valuable way to offset the cost of your solar system.
New Mexico property owners who invest in a solar energy system will not pay state sales tax on installing solar panels. The exemption is an absolute 100% of the sales tax, saving a property owner 5.125% immediately!
Although installing a solar energy system magnifies the worth of the property owner's home, the value of your home in New Mexico, adding a solar system won't result in a reassessment, and you'll continue to pay property tax based on the value before installing the system. This is an excellent solar incentive for property owners who invest in solar panels since they benefit from the monetary advantage of producing their energy minus the burden of a more significant tax bill.
Eligible property owners with solar panels may qualify for a 30% tax credit versus the system cost.
New Mexico federal state will credit the property owners on their taxes for installing a solar energy system as a portion of renewable development efforts on their properties. But to be eligible, the property must be validated as sustainable by the U.S. Green Building Council. In return, a property owner can receive about $6.50 per square foot for renewable solar energy.
If you reside in New Mexico, you can take advantage of fantastic solar incentives, rebates, and exemptions. Additionally, you're eligible for a substantial tax credit from the Federal government, known as the Investment Tax Credit (ITC). The ITC equals 26% of the solar system's cost and will be deducted from your Federal income tax. However, the tax credit only applies to those who purchase their solar system outright (cash or loan) and not those who lease it. If you lease the system, the incentives will go to the third-party owner, making buying instead of leasing a wise decision.
Today is the best time to go solar in New Mexico!
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