Solar Quotes in New Mexico
State tax credit: New Solar Market Development Tax Credit
- The credit covers 10% of equipment, materials and labor, up to $6,000 per taxpayer. It's first come, first served under a $30 million annual cap. Source: EMNRD, https://clean.energy.nm.gov/new-solar-market-development-tax-credit-nsmdtc/ (accessed 2026-10-20)
- It covers systems installed from 2025 through 2031. You must apply by December 31 of the year after installation, so a system installed in 2026 has a deadline of December 31, 2027. Date-sensitive: the cap can run out within a year. Source: same (accessed 2026-10-20)
- You get a Certificate of Eligibility from EMNRD first, then claim the credit on your New Mexico return. EMNRD says the excess may be refundable for tax years 2022 and later, and the credit can be transferred. Source: same (accessed 2026-10-20)
Net metering for systems up to 10 kW
- Under 17.9.570.14 NMAC, if you generate more than you use in a billing period, the utility credits the excess on your next bill. It either pays or credits you at the utility's energy rate, or credits the kWh. Unused credits carry forward month to month. Source: https://www.srca.nm.gov/parts/title17/17.009.0570.html (accessed 2026-10-20)
A note on the federal tax credit
The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed. Source: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb (accessed 2026-10-20). This page isn't tax advice.
Is solar worth it in New Mexico?
It depends on your bill, roof and utility rules. Here is an estimate for a home with a $150 monthly electric bill and a south-facing, unshaded roof, before any incentives:
- Residential electricity averaged an estimated 15.08¢/kWh in New Mexico (January–July 2026), below the U.S. average of 18.19¢ (34 of 51, highest first). Source: EIA Electric Power Monthly, Table 5.6.B (accessed 2026-10-20)
- Small rooftop systems in New Mexico produced an estimated 2,033 kWh per kW of panels in 2024 (2024 small-scale solar generation divided by average 2023–2024 small-scale capacity). Source: EIA Electric Power Annual 2024, Tables 3.21 and 4.7.B (accessed 2026-10-20)
- Estimated system size: 4.7–6.3 kW, producing about 11,182 kWh a year (estimated).
- Estimated installed cost: $16,500–$28,600 before incentives, using $3.00–$5.20 per watt. Source: Lawrence Berkeley National Laboratory (2024 installed prices, 20th–80th percentile; accessed 2026-10-20)
- Estimated simple payback: 9–20 years. Savings depend on how your utility credits exported energy (see above).
Estimates only, based on public data and simple assumptions. Actual production, cost, and savings vary by home, utility, rate plan, and installer. Not a quote, and not a guarantee of savings. Ask your installer about any state, local, or utility incentives that apply. State and local programs: DSIRE.
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