Discover your exact solar savings potential in New Mexico. We factor in local utility rates, sun hours, and state-specific incentives to give you an accurate ROI estimate.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Find out how much you can save based on your location and current energy usage.
New Mexico rivals Arizona for solar irradiance. Albuquerque and much of the state receive outstanding sun exposure, widely regarded as among the best in the entire country. More sun means more electricity generated per panel installed.
New Mexico's state solar tax credit gives you 10% of total equipment, materials, and labor costs — up to $6,000 per year — and it is refundable. If the credit exceeds your state tax liability, the state sends you the difference as a refund. Apply promptly through EMNRD after installation: certificates are issued first-come, first-served from a $30 million annual fund (expanded from $12 million via SB 121 in 2024) and can be exhausted for the year if you wait too long.
Solar panels, inverters, racking, and related hardware are exempt from New Mexico's gross receipts tax (the state's equivalent of sales tax), lowering your upfront purchase cost.
The added home value from a residential solar installation is fully exempt from property tax assessment in New Mexico — permanently, for as long as you own the system. Your property tax bill will not increase because you went solar.
All regulated investor-owned utilities in New Mexico (PNM, El Paso Electric, Xcel Energy/SPS) must offer net metering with no statewide aggregate cap. However, the compensation terms differ materially: PNM credits you at full retail rate and banked credits roll over indefinitely; El Paso Electric credits at retail rate within the month only, then pays out surplus at a lower purchased-power rate at month's end; Xcel Energy offers retail-rate net metering for systems under 10 kW plus a Solar*Rewards per-kWh cash incentive. Confirm current terms with your specific utility before sizing your system.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act and does NOT apply to systems installed in 2026 or later. New Mexico's state incentives remain active and valuable on their own.
Everything you need to know about solar incentives, costs, and savings in your area.