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Residential Incentives for New Mexico Homeowners

Switching to solar offers clients the ability to harvest clean renewable energy while also reaping the benefits of state and federal tax credits. New Mexico offers several incentives that help to drive down the cost of the solar installation and increase your savings over time.

The abundance of sunshine combined with net metering, the Solar Development Tax Credit, tax exemptions, and the Federal Solar Tax Credit result in a powerful investment for homeowners and businesses alike.

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Net Metering is available to most homeowners in New Mexico.

What is Net Metering?

Net Metering allows the homeowner, or utility customer, to receive a credit for excess electricity that is generated and not consumed by the homeowner. This electricity is added back to the grid. If a home is net-metered the the client will receive the credit which can be used to offset the homeowner’s electricity consumption at different times during the day (for example at night), or even at other times during the year at electricity usage increases or decreases.

Many of the larger utilities in New Mexico, including PNM, and several of the cooperatives throughout the State, offer a net-metering program.

Federal Investment Tax Credit – 30%

The Federal Solar Tax Credit for Solar PV, or Investment Tax Credit (ITC) can be claimed on federal income taxes for a percentage of the cost of the solar PV system. The 30% tax credit provides the greatest incentive to homeowners throughout New Mexico.

  • Homeowners who install a system between 2022 and 2032 are eligible.
  • 30% tax credit on cost of solar PV system.
  • In 2033, the tax credit will decrease to 26% for systems installed in 2034.
  • Energy storage (battery backup) expenses are now included as eligible products.
  • Find out everything you need to know here: Homeowner’s Guide to Federal Tax Credit.

To learn more, contact our team at (505) 455-8875. 

Homeowners are eligible for the 30% Federal Tax Credit, also known as the Investment Tax Credit.
Corrales solar panel installation, time to shine

New Mexico Solar Development Tax Credit

In 2020 the New Mexico Legislature passed the New Mexico Development Tax Credit. It was signed by the Governor of New Mexico and is now available to homeowners!

  • Solar installations purchased and installed on or after March 1, 2020 are eligible for a 10% tax credit savings up to $6,000.
  • Eligible homeowners have until 2032 to take advantage of the New Mexico Solar Tax Credit.
  • In 2022, the bill was modified to allow the tax credit to be refundable if the tax payer does not have sufficient tax liability.
  • Annual funding of the tax credit was increased from $8 Million to $12 Million. Funding is first come first served! It goes quickly. 

If you are thinking of going solar NOW is the time. Combined with the Federal ITC, customers are seeing an excellent return on their investment.

Start with a FREE Quote Now! 

Choose the Right Solar Installer.

Look no further than Sol Luna Solar. We take the time to understand our customers and are committed to providing excellent customer service. Our full-service solar installation packages mean homeowners get the most out of their investment.

We’ll walk you through the process and make sure you have everything you need in order to take advantage of the Federal Solar Tax Credit!