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Key Points
The average cost of solar panels in New Mexico is $3.93 per watt, with an upfront cost of about $19,640.
Over 25 years, you could save about $12,000 in electricity expenses by installing solar panels in New Mexico.
The average payback period for solar panels in New Mexico is about 13.3 years.
Solar power in New Mexico
The past decade has been a time for growth in the solar industry across the nation, and New Mexico is no exception. Like many states, New Mexico has had an increase in solar installations in recent years. According to the Solar Energy Industries Association (SEIA), the Land of Enchantment already generates enough solar energy to power more than 370,000 homes, and it’s expected to grow its solar infrastructure by 260% over the next five years.
If you live in New Mexico, you could save money on energy by installing solar panels on your home. You may need to spend substantially upfront, but there are ways to reduce those costs — and you’ll save on energy costs in the long run. Keep reading to learn about the costs and benefits of solar panels in New Mexico and find out whether they’re right for your home.
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New Mexico solar panel cost
Solar installations are customizable, so total costs can vary significantly. The cost of solar panels in New Mexico depends on several factors, including the size, configuration, and components of your system, as well as the local labor and permitting costs in your area.
According to data from Find Energy, the average cost of solar panels in New Mexico is $3.93 per watt, with a typical system size of 5 kilowatts (kW). This results in an average total system cost of about $19,640 before any taxes or incentives. The table below shows how this compares with the national average.
Price Per Watt
System Size
Total Cost
Number of panels
New Mexico
$3.93
5 kW
$19,642
12–17
U.S.
$3.67
8.6 kW
$31,558
22–29
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
How does New Mexico solar save you money?
The average cost doesn’t factor in the various ways you can save on the cost of solar panels in New Mexico. With the federal solar tax credit, you can recoup 30% of the cost of your solar panels when you file your next tax return — that’s about $5,890 off the typical New Mexico solar installation. There are also various New Mexico solar incentives, which we’ll explore more below.
Even more significant savings, however, come from your reduced electricity bills. The average New Mexico resident spends $85.92 per month on their electricity bill. With an adequately sized and properly placed system, you could potentially negate this cost entirely. Without that monthly expense, you could recoup the cost of New Mexico solar panels in just over 13 years. Since solar panels can last 25 years or more, you’ll continue saving money for years to come.
The following table will give you an idea of the cost of various sizes of solar installations in New Mexico before tax credits and incentives. Use this alongside your current monthly energy bills to calculate your potential long-term savings.
System size
Total cost
Number of
solar panels*
3 kW
$11,790
7–10
5 kW
$19,650
12–17
7 kW
$27,510
18–23
9 kW
$35,370
23–30
11 kW
$43,230
28–37
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The best New Mexico solar incentives or rebates
To make solar panels more affordable for homeowners, the federal government and many state governments have implemented policies that include tax credits, net metering, and more.
Homeowners can utilize the 30% federal tax credit to recover thousands from the cost of your solar panel purchase. Formally called the Residential Clean Energy Credit, it is set to decrease to 26% in 2033, fall to 22% in 2034, and phase out entirely in 2035 unless Congress renews it.
New Mexico also offers some solar initiatives to help you save, outlined in the table below.
New Mexico utilities offer both net metering and renewable energy certificates as options for customers to earn savings on their bills in exchange for excess solar energy generation.
New Mexico offers additional incentives for residential and commercial buildings that attain Build Green Gold or higher, LEED-H Gold or higher, or Energy Star certifications.
Residents throughout the U.S. can receive a 30% federal tax credit for solar panels purchased between 2022 and 2032. The credit decreases to 26% in 2033 and 22% in 2034. It will expire in 2035 unless renewed.
Solar incentives in Albuquerque
Like residents in other New Mexico cities, those who install solar panels in Albuquerque may be eligible for the state’s solar tax credit, also known as the Solar Market Development Tax Credit. This is good for up to $6,000 or 10% of the cost of your New Mexico solar panels, whichever is less. Below is an overview of the process for claiming your tax credit:
Purchase and install your New Mexico solar energy system.
Submit an application with the Energy Minerals and Natural Resources Department (EMNRD) and receive your certificate of eligibility.
Claim your credit with the Taxation Revenue Department.
Albuquerque residents can also contact their utility company about any potential net metering benefits or renewable energy certificates.
Why choose New Mexico solar power?
Choosing solar power in New Mexico provides many benefits, including reducing your energy costs, establishing energy independence, and reducing your home’s carbon footprint.
Lower energy costs
One of the primary benefits of solar panels is reducing your energy costs. First, you’ll save money on your monthly energy bills by powering your home primarily with solar energy instead of relying on the traditional electricity grid. Your energy savings could amount to tens of thousands of dollars over the life of your solar panels. Solar panels can also increase your home’s value by as much as $15,000.
Establish energy independence
Another benefit to installing solar panels on your home is the opportunity to reach energy independence, meaning you’re not fully reliant on the traditional electricity grid to power your home. If you have a solar battery to store your excess energy, you can also keep your home running when the power grid is down.
Go green
Traditional electricity generation pollutes the environment and contributes to climate change. Solar energy generation doesn’t have this same harmful effect because solar power is a renewable, clean energy source.
Should I buy or lease my solar panels?
Buying or leasing solar panels each has its own advantages and disadvantages. Buying solar panels is more cost-effective in the long run. Not only does it provide more energy savings, but it also allows you to take advantage of the tax credits, which you don’t qualify for when you lease your panels. Additionally, buying solar panels for your home can increase your home’s resale value by $15,000 on average.
While leasing solar panels isn’t quite as cost-effective, it still has its benefits. First, leasing solar panels doesn’t require the same upfront cost as buying. Additionally, leasing might make more sense for those who rent their homes instead of owning them. However, if you enter into a lease or power purchase agreement (PPA), you can’t take advantage of the federal tax credit and other solar incentives.
Another option that’s available in some areas is community solar. In this type of program, all participants share the solar power that’s created from the project. Participants don’t have to pay the large upfront cost of buying panels, nor do they have to install them on their homes.
Here’s a comparison of these options so you can find the right fit for financing solar energy in New Mexico.
Payment method
Benefits
Drawbacks
Cash purchase
Most long-term savings, full ownership, incentive eligibility, energy savings
No upfront costs, power home with clean energy, energy savings
No ownership
New Mexico solar panel companies
There are currently more than 80 solar companies in New Mexico, so you’ve got plenty of options when it comes to setting up your solar project. SaveOnEnergy partners with top-tier installers across the state to help you find the best solar company for your needs. To get started, fill out our solar estimator or call the number on your screen.
Solar installer
Year founded
Financing options
Warranty terms
2011
Cash purchase or solar loan
25-year manufacturer warranty and production guarantee
2018
Cash purchase or solar loan
30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
1985
Purchasing, financing, or leasing systems
25-year product, performance, and quality of work warranties
What to look for in a solar contractor
Choosing a solar company is one of the most important steps in the process of installing solar panels in New Mexico. As you explore your options, be sure to look for an installer with industry certification from an organization like the North American Board of Certified Energy Practitioners (NABCEP). Read up on their installation history and customer service ratings, and be sure their equipment is up to today’s top standards, including extensive warranty coverage.
Beware of free solar panels in New Mexico scam
When you explore your options for New Mexico solar energy, you may come across offers for “free solar panels in New Mexico.” Don’t be fooled — solar installations come at a significant upfront cost. These offers are just scams aimed at getting your personal information. You may not be able to install New Mexico solar panels for free, but they can save you thousands in the long run.
Important solar installation factors to consider
Solar power can be an excellent investment, especially in a sunny state like New Mexico. However, there are a few things to consider before you install solar panels on your home.
Your roof: According to the Department of Energy, solar panels are most effective on roofs in good condition and those that are south-facing with slopes between 15 and 40 degrees.
Sunlight: Homes that get lots of sunlight will get the most use out of solar panels. Consider your local weather patterns and any obstructions like surrounding buildings or trees.
Your neighborhood: If you have a homeowners association, you may need to get approval to install solar panels or may be limited on the size of the system you can install.
The cost of solar panels can vary widely based on local factors and your particular system, but the average solar system in New Mexico costs about $19,640 before tax incentives or credits.
Solar power can help reduce your energy costs and increase your home’s value, making it a great investment for many households. However, whether it’s a good investment for you depends on the amount of sunlight your home gets and your energy usage habits.
The average New Mexico resident pays around $85.92 per month for electricity. With a solar system, you can save up to $1,030 per year. After 25 years with solar, you could fully recover your installation cost and make over $12,000 in energy savings.
If you’re in the market for solar panels, SaveOnEnergy can help. Just enter your information in the form on the screen and we’ll connect you with a trusted solar installer in your area.
Unlike traditional electricity generation, solar power doesn’t emit carbon dioxide into the atmosphere. It’s also a renewable resource, meaning it doesn’t replete the world’s natural resources.
