Whether you’re living in Albuquerque, Las Cruces, Carlsbad, Santa Fe, or anywhere in between, there’s never been a better time to go solar in New Mexico. The state is one of the more generous in the nation for switching to solar power, and with an average of 280 days a year filled with sunshine, it’s easy to see why it’s a great state to take advantage of solar energy.
In this post, we’ll go through the top 5 incentives to switch to solar power in the state of New Mexico. Let’s dive in.
1. Credit on your federal taxes
The Federal Investment Tax Credit, otherwise known as the ITC, is the largest incentive out there for going solar.
The good news: This is hands-down the biggest and best incentive for going solar in New Mexico and it has just been increased! The ITC is a federal tax credit of 30% for the entire purchase of your solar panel array (including a solar battery!) as well as installation.*
The even better news: If you don’t use it all in one tax year, the remainder rolls over to the next year. (Anybody remember rollover minutes?)
2. New Mexico solar market development tax credit
This incentive is unique to the state of New Mexico. Passed in 2020, the “New Mexico Solar Tax Credit,” provides a 10% tax credit to any business or homeowner in New Mexico up to $6,000. This is a first-come, first-served credit, and caps annually at $8M, so act quickly before it’s gone!
What’s more is you can also deduct your solar panels on your state tax returns. This is a huge benefit for residents of New Mexico, as many states do not have income taxes and, therefore, can’t make savings like this. You can put this money toward your new solar panel array and have them paid off even more quickly!
3. Property and sales tax exemptions
That’s right, both property and sales tax are exempt in the state of New Mexico. When you go solar, the state won’t tax you on the sale of your new array, and you won’t have to pay any additional property taxes on the new increased value of your home or business.
So, not only will you be generating your own power, but you’ll be able to make money off the added value (we’re talking tens of thousands of dollars) with no additional threat to your wallet.
4. Sell back your unused energy with net metering
Net Metering allows you to actually sell back electricity to the power company. Net metering programs work like this: during a sunny day, you likely won’t be able to use all the electricity that your panels produce. Net metering allows you to sell the extra power back to the power company in the form of credits to your electricity bill. Your meter actually runs backwards!
Then at night, when your panels sleep, you buy electricity from the power company as normal (unless you decide to get a solar battery). If you sell back more electricity during the month than you use, you will have a credit that moves forward to the next month.
5. Bonus Incentives in New Mexico
Bonus incentives are available for the state of New Mexico depending on where you live and which energy company you’re a customer of. You can ask your provider to find out what incentives are available to you.
For example, if you are a customer of El Paso Electric Company, you could be eligible for their renewable energy certificate purchase program. If you’re a customer of El Paso Electric (EPE) or Public Service Company of New Mexico (PNM), you can earn something called Solar Renewable Energy Credits (SRECs). This is a program which for every KW hour of solar energy your system creates, you can earn cash based on market value.
New Mexico Solar Incentives: In Conclusion
New Mexico is a great place for solar power. With some of the best incentives in the nation, residents in New Mexico are in prime condition to fire their power company and start saving on utilities.
ADT Solar is your trusted solar company in New Mexico. If you want to know more about going solar in New Mexico and all the great ways to save on your new solar panels, reach out to a certified expert at ADT Solar and we’ll get you the answers (and savings!) you’re looking for.
*Tax and credits or incentives including those provided by federal, state, or local governments may change or end. This can impact the amount of money you might save. Consult a tax professional to understand any tax liability or eligibility for any tax credits that may result from the purchase of your solar system.
If you have taxable income and own the system, you may qualify for the federal investment tax credit (ITC). It is your responsibility to determine your eligibility and to apply. Consult a qualified tax professional for assistance and details.