How Do We Rate Solar Companies?
TL;DR: We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.
Check our detailed review process here.
Quick Overview
- Is It Worth Going Solar in New Mexico? Yes, going solar in New Mexico is beneficial due to the state’s abundant sunshine and favorable solar incentives.
- How Much Does Solar Save Homeowners in New Mexico? The average 20-year savings of going solar in New Mexico is $26,113.
- What Is the Average Cost of Going Solar in New Mexico? As of 2024, the average cost of a 5 kW solar panel system in New Mexico is about $15,129 before incentives. After the federal tax credit, the average price drops by 30%.
- New Mexico Solar Incentives New Mexico offers several solar incentives, including net metering, sustainable building tax credit, state and federal tax credits, and property tax exemption for solar.
- Net Metering Policies in New Mexico New Mexico has a net metering policy that credits solar customers for the extra electricity their system produces.
- Are There Any Community Solar Programs in New Mexico? Yes, the New Mexico Community Solar Program allows New Mexicans to subscribe to a community solar project and receive credits back on their utility bill.
- How to Pick the Best Solar Installer in New Mexico? Consider factors such as the company’s reputation, customer reviews, years of experience, certifications, and whether they offer a comprehensive service from consultation to installation.
- Will Solar Increase Your Home Value in New Mexico? Yes, installing solar panels can increase the value of your home. However, this additional value is exempt from property taxes in New Mexico.
- What Are the Solar Financing Options Available in New Mexico? Various solar financing options are available in New Mexico, including solar loans and solar leases.
- Should You Choose a Local or National Solar Installer in New Mexico? Both local and national solar installers have their advantages. Local installers may have a better understanding of local regulations and incentives, while national installers might offer more competitive pricing due to larger scale operations. We would recommend considering a local installer with good reviews first.
Is It Worth Going Solar in New Mexico?
Yes, it is worth going solar in New Mexico for several reasons:
Energy Saving and Financial Benefits
- Electricity Bill Savings: When your home runs on solar energy, you don’t have to pay for traditional electricity. Depending on your electricity rate, solar could save you more than a thousand dollars per year.
- Tax Credits and Rebates: New Mexico offers several solar incentives, including tax credits and rebates, which can significantly reduce the cost of going solar. For example, the state’s solar tax credit can reduce your state tax payments by up to $6,000 or 10% off your total solar energy expenses (whichever is lower).
- Property Tax Exemption: Even though solar increases the value of your home, that extra value is exempt from property taxes in New Mexico.
Environmental Benefits
Switching to solar power reduces reliance on fossil fuels, leading to lower greenhouse gas emissions and a smaller carbon footprint. This is particularly important in New Mexico, which has set a goal to shift to 100% carbon-free energy by 2045.
Community Benefits
The New Mexico Community Solar Act was signed into law in 2021, aiming to expand access to renewable energy across the state. This act is expected to generate $517 million in economic benefits, create 3,760 high-quality jobs in various sectors over the next 5 years, and generate over $2.9 million in tax revenues annually for the state. Moreover, 30% of electricity produced from each community solar facility must be reserved for low-income customers and low-income service organizations.
Going solar in New Mexico offers significant energy savings, financial benefits, environmental advantages, and community benefits. It’s a worthwhile investment for most homeowners, but it’s important to do a value analysis for your home before committing to this clean energy source.
How much does solar save homeowners in New Mexico?
Solar power can provide significant savings for homeowners in New Mexico. Here’s a detailed breakdown:
Solar Savings
- Electricity Bill Savings: The average monthly electric bill in New Mexico is $144. By installing a solar panel system, you can significantly reduce or even eliminate this cost.
- Long-term Savings: Over the next 25 years, you should expect to pay $56,900 on electric bills in New Mexico. By going solar, you can save about $31,210 over 20 years on electricity costs with a 5 kW system.
Payback Period
The payback period is the time it takes for the savings from your solar system to equal the cost of the system itself. In New Mexico, the average payback period for a solar system is approximately 8.37 years.
Comparison with Traditional Electric Bills
Before installing solar panels, the average monthly electric bill for residential customers in New Mexico is $144. After installing a solar system, homeowners can expect to save about $1,700 in the first year. Over 20 years, these savings add up to $43,000.
*These are average figures and actual savings can vary based on factors such as the size of the solar system, the amount of sunlight your home receives, and your home’s energy consumption patterns. It’s always a good idea to get a personalized quote from a solar installer to understand the potential savings for your specific situation.
What is the average cost of going solar in New Mexico?
The average cost of going solar in New Mexico can vary based on the size of the solar system you choose. Here’s a detailed breakdown:
- Cost per Watt: As of April 2024, the average solar panel system costs $3.03/W including installation in New Mexico.
- Cost for a 5 kW System: For a 5 kW installation, this comes out to about $15,129 before incentives, though prices range from $12,860 to $17,398.
- Cost After Federal Tax Credit: After the federal tax credit, which reduces the cost by 30%, the average price drops significantly.
- Cost Based on System Size: The cost of your solar panel system will depend on its size. For example, a 3 kW system costs about $9,077, a 4 kW system costs about $12,103, and a 6 kW system costs about $18,155.
These costs include the price of the solar panels, inverter, racking system, and installation. It’s important to note that these are average costs and the actual cost can vary depending on various factors such as the specific equipment used, the installation company, and the specific location of the property.
*Also, these costs do not include any state-specific incentives or rebates that might be available in New Mexico, which could further reduce the cost.
New Mexico Solar Incentives
New Mexico offers several incentives for residents going solar. Here’s an overview of federal and local solar rebates in New Mexico:
Federal Solar Incentives
- Investment Tax Credit (ITC): Also referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. This applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and you must have enough income for the tax credit to be meaningful.
Local Solar Incentives in New Mexico
- Net Metering: New Mexico has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power1. Xcel Energy offers the top utility net metering program in New Mexico.
- Sustainable Building Tax Credit: The New Mexico state government will credit you on your taxes if you install solar as part of your sustainable building efforts on your home. In order to qualify, your home needs to be certified sustainable by the U.S. Green Building Council, and the value of the credit is determined by your certification level. You could earn as much as $6.50 per square foot for having a sustainable solar home.
- Property Tax Exemption for Solar: Even though solar increases the value of your home, that extra value is exempt from property taxes in New Mexico.
- New Mexico State Solar Tax Credit: This incentive can reduce your state tax payments by up to $6,000 or 10% off your total solar energy expenses (whichever is lower). The tax credit applies to residential, commercial, and agricultural installations.
These incentives make the switch to solar not only environmentally friendly but also economically appealing to New Mexico residents. Please note that these are general guidelines and the actual incentives can vary based on specific circumstances.
Net Metering Policies in New Mexico
Net metering is a policy that allows homeowners with solar power systems to send their excess electricity back to the grid in exchange for credits. In New Mexico, net metering offers several benefits:
How Net Metering Works
Net metering refers to the interconnection of a renewable energy system to the power grid. It allows consumers who have their own renewable generation power systems to connect to the power grid with an electric meter that spins both forwards and backwards, depending on whether the consumer is adding energy to the grid or using energy from the grid. At the end of the month, the customer’s bill is based on the net amount of power that is drawn from the grid, minus the credits for excess power put into the grid.
Benefits of Net Metering
- Energy Bill Savings: When your solar panel system produces more electricity than you use, that excess power is sent back to the grid. The power utility company then credits you for this excess energy. This can result in significant savings on your energy bill.
- Efficient Energy Use: One benefit of net metering is that power is never wasted. When someone uses an isolated system that uses batteries that become fully charged while the system is still generating power, that excess power is wasted.
- Lower Energy Costs in Peak Times: With net metering, you can use the credits you earn during off-peak times to offset the cost of electricity used during peak times.
- Encourages Renewable Energy Use: Net metering policies encourage the use of renewable energy by making it financially beneficial for homeowners.
- Potential for Profit: In New Mexico, customers who have systems that produce up to 80 MW of electricity are able to sign up for net metering. This is the highest power rating eligible for net metering in the United States. Customer-generators have the added benefit of selling renewable energy credits (REC) back to their utility.
The three main utilities in New Mexico are PNM, Xcel Energy, and El Paso Electric. All of these utilities offer net metering for their customers.
Please note that these are general guidelines and the actual benefits can vary based on specific circumstances. It’s always a good idea to consult with a solar installer or a utility company to understand the potential benefits for your specific situation.
Are There Any Community Solar Programs in New Mexico?
There are solar community programs available in New Mexico. The Community Solar Act, or SB84, was signed into law in April 2021. This program promotes participation in renewable energy solutions by allowing qualified electric utility customers to purchase shares in a solar facility to offset monthly energy consumption. Here’s how you can take advantage of them:
How to Participate
- Understand the Program: The community solar program allows for the development of community solar facilities and provides customers of a qualifying utility with the option of accessing solar energy produced by a community solar facility.
- Become a Subscriber: Subscribers to the facility receive a bill credit for the electricity generated in proportion to the subscriber’s share of the facility’s kilowatt-hour output.
- Choose a Subscribing Organization: The subscribing organization owns or operates the solar facility. You can choose an organization based on your preferences and needs.
Who Can Benefit
- Multi-unit Residents or Renters: For qualified utility customers who live in a multi-unit dwelling and/or do not directly control the shared property or have roof space, or are unable to make home modifications.
- Those affected by other factors: Your roof requires significant investment before a PV system could be installed. Your home’s location is shaded or your roof is oriented in such a way that it cannot receive adequate solar rays for a PV system. Your home is on a circuit with high saturation of PV systems.
Additional Benefits
The program mandated that 30% of new projects be reserved for low-income subscribers, creating economic benefits to ratepayers across the state’s utility jurisdictions. This ensures equal access to the economic and environmental benefits of solar energy generation regardless of the physical attributes or ownership of an individual’s home or business.
