Federal ITC 30% (tax credit)
State tax credit: Yes ($6,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Prospects for home solar power in New Mexico are brighter than ever, since the state legislature teamed up with Governor Michelle Lujan Grisham to pass a law requiring 100% of all energy generated in the state to come from renewable sources by 2045.
That's an amazing feat! The Land of Enchantment joins just 5 other states in setting the 100% renewable goal. While that target is a few decades away, the standard helps commit the state’s utility companies to source more energy from your home solar panels with stronger solar incentives.
Learn what solar incentives are available to New Mexico homeowners
See what New Mexico solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or New Mexico solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New Mexico
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
New Mexico has lots of sun and strong goals for installing solar, but that doesn't mean much unless there are also strong rules in place to protect solar owners from the shadier side of selling electricity to the utility company. Luckily, New Mexico does a pretty good job with that!
The state's net metering laws are some of the best in the country. The rules make it so you can get 1-to-1 retail electricity rate credits for your extra solar electricity you send back into the grid that you aren’t able to use onsite. The credits are carried forward indefinitely. You also get to retain control of any renewable energy credits your solar system produces. That has a benefit, as you can sell them to PNM as part of their solar performance program outlined below.
While New Mexico does not have a dedicated state rebate for solar panel installation, it does have a statewide solar tax credit, and some utilities offer solar programs homeowners can use.
An average-sized 6-kW solar system will produce about 10,500 kilowatt-hours (kWh) over a year in New Mexico. As part of a PNM program to purchase your renewable energy credits, they’ll pay you $0.0025 per kWh for a term of 8 years.
Unfortunately, that amounts to a mere $300 over the course of 8 years, excluding your $150 application fee. As a result of your participation, PNM gets to say they are meeting their renewable energy goals with your RECs.
We’d like to see the state do a little better here relating to stronger solar performance payments, but hey, at least it’s a little something.
New Mexico homeowners can use the statewide solar tax credit called the “New Solar Market Development Income Tax Credit”. It covers 10% of your installation costs up to a maximum of $6,000.
Since most average-sized 6 kW systems cost about $18,000, you can expect a credit of about $1,800. The credit carries forward for five years if you owe less than the tax credit value.
The legislature has also built tax exemptions into the laws here, saving you money both up-front and every year thereafter for the life of your new solar power system.
New Mexico’s property tax exemption will keep you saving money every year. When you install a solar power system, your home goes up in value by about twenty times your annual electricity bill savings. That adds up to a lot of money in most cases! Normally you’d pay taxes on that increase in value, but thanks to this exemption, your property taxes stay the same.
Showing data for:
Prices based on a 7.9kW system, after 30% federal tax credit
40 solar companies in New Mexico provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 287 Reviews
Sven, over 1 month
I live in a condo unit in a 1950s neighborhood in Santa Fe, NM. The electrical service in the neighborhood and the condo is not to the newest standard, plus there was only limited exterior wall space for installing the various electrical components needed. In summary, designing and installing the system was a challenge. Prior to Positive Energy Solar, I had contacted two other local solar installation firms, who were interested in the project, but ultimately lacked the knowledge, resources, and/or dedication to come up with a design. I had given up hope that it could be done, until someone shared their positive experience with Maria Hondros, a Sales Advisor at Positive Energy Solar, who exceeded all my expectations. She was extremely knowledgeable, dedicated and well connected to come up with a design that took all the constraints into consideration. At one point the design was about to be determined as not feasible due to some technical calculations. She took it upon herself to review the calculations and detected an error in the spreadsheet that was used by others in the calculation. The project manager and installation crew were also a joy to work with. In summary, I can highly recommend the entire team at Positive Energy Solar, and in particular the Sales Advisor Maria Hondros. Without her knowledge and dedication, I don’t believe I would have been able to get solar panels installed.
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Sven, over 1 month
I live in a condo unit in a 1950s neighborhood in Santa Fe, NM. The electrical service in the neighborhood and the condo is not to the newest standard, plus there was only limited exterior wall space for installing the various electrical components needed. In summary, designing and installing the system was a challenge. Prior to Positive Energy Solar, I had contacted two other local solar installation firms, who were interested in the project, but ultimately lacked the knowledge, resources, and/or dedication to come up with a design. I had given up hope that it could be done, until someone shared their positive experience with Maria Hondros, a Sales Advisor at Positive Energy Solar, who exceeded all my expectations. She was extremely knowledgeable, dedicated and well connected to come up with a design that took all the constraints into consideration. At one point the design was about to be determined as not feasible due to some technical calculations. She took it upon herself to review the calculations and detected an error in the spreadsheet that was used by others in the calculation. The project manager and installation crew were also a joy to work with. In summary, I can highly recommend the entire team at Positive Energy Solar, and in particular the Sales Advisor Maria Hondros. Without her knowledge and dedication, I don’t believe I would have been able to get solar panels installed.
4.80 166 Reviews
Excellent Local Experts, over 1 month
Had my system installed in 2018. We received the best attention and Customer care we didn't receive anywhere else. We researched and contacted many "local" solar companies and nothing compared to the service we received with Sunspot. They are the true best LOCAL company in Las Cruces and surrounding areas. I'm so glad we contacted true experts!
Read more
Average cost (5kW system)
$22,500 ($4.50 per watt)
Excellent Local Experts, over 1 month
Had my system installed in 2018. We received the best attention and Customer care we didn't receive anywhere else. We researched and contacted many "local" solar companies and nothing compared to the service we received with Sunspot. They are the true best LOCAL company in Las Cruces and surrounding areas. I'm so glad we contacted true experts!
4.66 37 Reviews
Gina Lee, over 1 month
Corey Asbill, Alex Cardone and Matthew Chandler are fantastic! Back story: I was devastated because once the other solar company received their money May 2023, their service was horrible and nonexistent. After trying to contact my original solar company for months getting the run around, then no responses, I called tried again to contact other solar company January 15, 2024, in the morning, someone answered the phone to tell me, “good luck with your solar being installed we are without jobs all employees been released.” I panicked thinking I’ve been scammed and now I’m stuck paying for a solar system not fully installed and not working. Initially January 15, 2024, in the afternoon, I walked into Organ Mountain Solar & Electric lost, upset and confused because after dealing with another solar company since May 2023 making credit card payments for a solar system not hooked up with little to no progress. I was embarrassed but explained my situation that this other solar company basically set me up with a huge credit card bill but did not finish the job. The owners’ Corey Asbill, Alex Cardone and technician Matthew Chandler listened to my situation, which lower my stress and said they would be out the next day to see if they can finish the installation process for me. Coming in the beginning to midpoint of someone else’s job is difficult, but Matthew did and explained the whole process, which eased my mind of the mess I got myself into with the other company. I was scammed out of money and mad at myself for being taken advantage of. Matthew and team worked with the city permit office to do a reinspection to have my system pass inspection. The electric company came out to do their inspection it failed because the other company didn’t submit all the documentation correctly, but Organ Mountain fixed the documentation, and the electric company reinspected and installed the meter. I spoke with electric company technician who asked me who I initially used to install my solar he already knew the company before I told him because he said they always do horrible work and fail their inspections. He said Organ Mountain does excellent work when he inspects their work always right and professional. I said, “funny you mention Organ Mountain Solar that is who has helped me with getting my system up to code for you to reinspect”. They have been so knowledgeable and professional. He said he could tell that when he came back to reinspect it was Organ Mountain work. Matthew walked me through the whole solar system and established my account with the Enphase, showed me the app. Organ Mountain also provided me with their tax person so I can submit my federal/state tax rebates next year. Matthew sent me a text: Congratulations you are producing electricity on April 12, 2024. Thank you, Organ Mountain Solar & Electric, especially Matthew who went above and beyond to provide excellent advice, service and taking the time to work with me when my trust in businesses was severely damage. So many things to say about their service to the customers they serve. I have told many of my friends, co-workers, and family if they are considering a solar system or electrical work, give Organ Mountain Solar & Electric an opportunity to provide the information you need! I highly recommend Organ Mountain Solar & Electric with continuous stars. Best company in my book……customer for life.
Read more
Gina Lee, over 1 month
Corey Asbill, Alex Cardone and Matthew Chandler are fantastic! Back story: I was devastated because once the other solar company received their money May 2023, their service was horrible and nonexistent. After trying to contact my original solar company for months getting the run around, then no responses, I called tried again to contact other solar company January 15, 2024, in the morning, someone answered the phone to tell me, “good luck with your solar being installed we are without jobs all employees been released.” I panicked thinking I’ve been scammed and now I’m stuck paying for a solar system not fully installed and not working. Initially January 15, 2024, in the afternoon, I walked into Organ Mountain Solar & Electric lost, upset and confused because after dealing with another solar company since May 2023 making credit card payments for a solar system not hooked up with little to no progress. I was embarrassed but explained my situation that this other solar company basically set me up with a huge credit card bill but did not finish the job. The owners’ Corey Asbill, Alex Cardone and technician Matthew Chandler listened to my situation, which lower my stress and said they would be out the next day to see if they can finish the installation process for me. Coming in the beginning to midpoint of someone else’s job is difficult, but Matthew did and explained the whole process, which eased my mind of the mess I got myself into with the other company. I was scammed out of money and mad at myself for being taken advantage of. Matthew and team worked with the city permit office to do a reinspection to have my system pass inspection. The electric company came out to do their inspection it failed because the other company didn’t submit all the documentation correctly, but Organ Mountain fixed the documentation, and the electric company reinspected and installed the meter. I spoke with electric company technician who asked me who I initially used to install my solar he already knew the company before I told him because he said they always do horrible work and fail their inspections. He said Organ Mountain does excellent work when he inspects their work always right and professional. I said, “funny you mention Organ Mountain Solar that is who has helped me with getting my system up to code for you to reinspect”. They have been so knowledgeable and professional. He said he could tell that when he came back to reinspect it was Organ Mountain work. Matthew walked me through the whole solar system and established my account with the Enphase, showed me the app. Organ Mountain also provided me with their tax person so I can submit my federal/state tax rebates next year. Matthew sent me a text: Congratulations you are producing electricity on April 12, 2024. Thank you, Organ Mountain Solar & Electric, especially Matthew who went above and beyond to provide excellent advice, service and taking the time to work with me when my trust in businesses was severely damage. So many things to say about their service to the customers they serve. I have told many of my friends, co-workers, and family if they are considering a solar system or electrical work, give Organ Mountain Solar & Electric an opportunity to provide the information you need! I highly recommend Organ Mountain Solar & Electric with continuous stars. Best company in my book……customer for life.
4.65 85 Reviews
Jean, over 1 month
Affordable Solar was very prompt and courteous with their service! They explained everything I needed to know and asked if I had any questions. I love having solar!
Read more
Average cost (5kW system)
$17,650 ($3.53 per watt)
Jean, over 1 month
Affordable Solar was very prompt and courteous with their service! They explained everything I needed to know and asked if I had any questions. I love having solar!
4.64 65 Reviews
Keoma, over 1 month
I contracted this company because of their high reviews but after completing a project with them, I'm not sure how they got those reviews. After talking to some other companies first, I decided to use SolarPro for my project. We signed a contract that included electric panel upgrade and the project was slated to complete in four months. The first two months, I barely received any communications from them. When I sent them emails asking about status, it would take a week or even sometimes they don't respond. The only bright spot is Kara in customer service, when you bypass everyone else and contact her, she was very helpful. After two months and the paper work started moving, I got a notice that my panel upgrade will cost an additional $1500 even though we had it in the contract. I tried contacting the Paulin brothers who are the owners and they did not even make a courtesy reply, nothing different than other times trying to contact the project manager. I was then told that I either pay the extra fee or the project would not continue. It was a tough choice to stay with them but since we already wasted 2 months, I didn't want to restart the process all over with another company. The project continued to move slow which I understand is due to applications with PNM and the city so they don't have much control. Once install happened, that was quick and professional with no issues. The project was finished 6 month after start instead of the original 4 months promised. Part of the rebate process with the NM state, SolarPro had to send me forms to complete. It took them 2 months from end of my project to send me the forms. By the time they did and I turned that into the state, the state ran out of money for 2022 projects which I was never told it was a possibility otherwise I would have pushed the completion into 2023. It seemed something very basic they should know. So on top of the $1500 additional for the panel, I was out 10% of the project cost since NM rebates were not possible. So if you ever decide to use these guys, and I wouldn't understand why, make sure you start your project really early or really late in the year otherwise you can count on not getting NM rebates. Overall, I'm happy with my system and I would get it again but there's no way I would use these guys or recommend them to anyone.
Read more
Average cost (5kW system)
$17,500 ($3.50 per watt)
Keoma, over 1 month
I contracted this company because of their high reviews but after completing a project with them, I'm not sure how they got those reviews. After talking to some other companies first, I decided to use SolarPro for my project. We signed a contract that included electric panel upgrade and the project was slated to complete in four months. The first two months, I barely received any communications from them. When I sent them emails asking about status, it would take a week or even sometimes they don't respond. The only bright spot is Kara in customer service, when you bypass everyone else and contact her, she was very helpful. After two months and the paper work started moving, I got a notice that my panel upgrade will cost an additional $1500 even though we had it in the contract. I tried contacting the Paulin brothers who are the owners and they did not even make a courtesy reply, nothing different than other times trying to contact the project manager. I was then told that I either pay the extra fee or the project would not continue. It was a tough choice to stay with them but since we already wasted 2 months, I didn't want to restart the process all over with another company. The project continued to move slow which I understand is due to applications with PNM and the city so they don't have much control. Once install happened, that was quick and professional with no issues. The project was finished 6 month after start instead of the original 4 months promised. Part of the rebate process with the NM state, SolarPro had to send me forms to complete. It took them 2 months from end of my project to send me the forms. By the time they did and I turned that into the state, the state ran out of money for 2022 projects which I was never told it was a possibility otherwise I would have pushed the completion into 2023. It seemed something very basic they should know. So on top of the $1500 additional for the panel, I was out 10% of the project cost since NM rebates were not possible. So if you ever decide to use these guys, and I wouldn't understand why, make sure you start your project really early or really late in the year otherwise you can count on not getting NM rebates. Overall, I'm happy with my system and I would get it again but there's no way I would use these guys or recommend them to anyone.
4.60 78 Reviews
K. Riordan, over 1 month
We had our panels installed in February of 2022. Our inverter has been out for months now and our sells rep. Chris kept insuring us that someone would be out to fix the problem. Now they never return our calls or answer our calls. No one at the company will give me a name or number of someone else to talk to and state we have to go through Chris. We now not only have a high electrical bill, but a bill for Solar panels that are useless. If you are thinking about getting solar panels, I would do a lot of research prior to deciding on this company and even if solar panels are worth it in the end.
Read more
K. Riordan, over 1 month
We had our panels installed in February of 2022. Our inverter has been out for months now and our sells rep. Chris kept insuring us that someone would be out to fix the problem. Now they never return our calls or answer our calls. No one at the company will give me a name or number of someone else to talk to and state we have to go through Chris. We now not only have a high electrical bill, but a bill for Solar panels that are useless. If you are thinking about getting solar panels, I would do a lot of research prior to deciding on this company and even if solar panels are worth it in the end.
4.52 30 Reviews
Ralph, over 1 month
It works great only $8 a month max for our electric bill. They completed the job perfectly And communicated perfectly! they would respond to any questions or texts within minutes even if it was a Saturday or Sunday.
Read more
Average cost (5kW system)
$18,750 ($3.75 per watt)
Ralph, over 1 month
It works great only $8 a month max for our electric bill. They completed the job perfectly And communicated perfectly! they would respond to any questions or texts within minutes even if it was a Saturday or Sunday.
4.51 34 Reviews
Rob Lowrie, over 1 month
I’ve had a Select Solar installation at my home for several months now, and it’s going great. Greg is very professional, knows his business, and his team is fantastic. He worked well with the County and its rules, permitting, and inspections. He came up with a clever way to route the wiring to avoid a roof penetration, something that the other 3 quotes I got insisted on. The installation looks great. I recently had my roofer out for an inspection, and he was also impressed with the installation. Greg is a licensed electrician and did our panel upgrade, something the other vendors needed to contract out. This likely contributed to the overall price of the installation being the lowest. I highly recommend Select Solar.
Read more
Average cost (5kW system)
$23,200 ($4.64 per watt)
Rob Lowrie, over 1 month
I’ve had a Select Solar installation at my home for several months now, and it’s going great. Greg is very professional, knows his business, and his team is fantastic. He worked well with the County and its rules, permitting, and inspections. He came up with a clever way to route the wiring to avoid a roof penetration, something that the other 3 quotes I got insisted on. The installation looks great. I recently had my roofer out for an inspection, and he was also impressed with the installation. Greg is a licensed electrician and did our panel upgrade, something the other vendors needed to contract out. This likely contributed to the overall price of the installation being the lowest. I highly recommend Select Solar.
4.50 13 Reviews
our solar project, over 1 month
Sunfire's representative, William Kemp, was straightforward and informative. The installers were polite, answered questions, and cleaned after finishing. Sunfire was prompt with the NM tax paperwork.
Read more
our solar project, over 1 month
Sunfire's representative, William Kemp, was straightforward and informative. The installers were polite, answered questions, and cleaned after finishing. Sunfire was prompt with the NM tax paperwork.
4.46 15 Reviews
Anonymous, over 1 month
We got a 10.2 KWh system installed. I got 2-3 quotes from 5 different companies, including Sun Power and Affordable solar. I am an Electrical Engineer, so I was not easy to work with and I did a TON of research comparing the different companies and technologies. Mark (the CEO) was very patient and gave me a all research and data that I asked and then some. He went above and beyond to get our business. The inverts they use are definitely superior to the micro inverters used by the other companies I got quotes from. <br /><br />All of the other companies I got quotes from seemed to have a less than honest approach to their sells pitch, starting out at extremely high prices then coming down a lot on their second and third quotes. Not the case with Solluna. A fair, honest quote the first time and very little reduction in the overall price after much MUCH negotiating.<br /><br />Solluna solar's quote was about %20 below the other companies. For that savings I can probably replace all of the solar panels on my roof (myself) in 25 years and still be below the price of the other companies. If you are considering solar panels and you are lucky enough to live near this company then I will tell you what I have told my friends and family, call Solluna Solar.
Read more
Anonymous, over 1 month
We got a 10.2 KWh system installed. I got 2-3 quotes from 5 different companies, including Sun Power and Affordable solar. I am an Electrical Engineer, so I was not easy to work with and I did a TON of research comparing the different companies and technologies. Mark (the CEO) was very patient and gave me a all research and data that I asked and then some. He went above and beyond to get our business. The inverts they use are definitely superior to the micro inverters used by the other companies I got quotes from. <br /><br />All of the other companies I got quotes from seemed to have a less than honest approach to their sells pitch, starting out at extremely high prices then coming down a lot on their second and third quotes. Not the case with Solluna. A fair, honest quote the first time and very little reduction in the overall price after much MUCH negotiating.<br /><br />Solluna solar's quote was about %20 below the other companies. For that savings I can probably replace all of the solar panels on my roof (myself) in 25 years and still be below the price of the other companies. If you are considering solar panels and you are lucky enough to live near this company then I will tell you what I have told my friends and family, call Solluna Solar.
For more information about going solar near where you live, check out the following resources: