Switching to clean energy can be a lot more affordable thanks to New Mexico solar incentives. These programs help reduce the cost of installing solar panels significantly.
With all the sunny days New Mexico enjoys, it’s the perfect place for solar power. In 2024, the available incentives and rebates make it an excellent time to go solar. You’ll benefit from federal tax credits and state rebates, making the financial perks even sweeter.
This post will break down the savings and benefits for you. If you’re in New Mexico, you’ll discover how to lower your energy bills and get the most out of solar energy. Let’s help you make informed choices and save money with solar power.
Key Takeaways
- Solar incentives lower installation costs.
- New Mexico has federal and state solar tax credits.
- Solar panels help reduce electricity bills.
Federal Solar Investment Tax Credits
The Federal Solar Investment Tax Credit (ITC) is a great way to save on going solar.
As of July 2024, the ITC lets you claim 30% of your solar installation costs as a tax credit. That means if you spend $20,000 on your system, you can reduce your taxes by $6,000.
Here’s how it breaks down:
| Cost of System | $20,000 |
|---|---|
| ITC Percentage | 30% |
| Tax Credit | $6,000 |
| Net Cost | $14,000 |
Think of the ITC as a discount from the government. It’s a good idea to act now while the 30% credit is in place. Using the ITC can make solar more affordable for your home or business. Maximize your savings and go green with confidence.
New Mexico Solar Incentives and Tax Credits
Solar incentives and tax credits help make solar installations more affordable. They are especially useful in New Mexico, where there is a strong commitment to renewable energy. Here are detailed explanations of the top incentives available.
Solar Market Development Tax Credit (SMDTC)
The Solar Market Development Tax Credit (SMDTC) offers significant savings. You can receive a tax credit of 10% of your system’s total cost, up to $6,000.
To apply, you need to use an online portal and submit required documents, which you can find on the EMNRD SMDTC webpage. The program has an annual funding cap, recently increased to $30 million with House Bill 252.
If the program was maxed out between 2020-2023, House Bill 252 allows for claiming credit for those years. This program provides considerable financial benefits, helping both homeowners and businesses save on their solar installations.
Sustainable Building Tax Credit (SBTC)
The Sustainable Building Tax Credit promotes eco-friendly building practices. To qualify, your building must meet specific green standards, including incorporating solar energy.
Applying these sustainable practices can reduce your environmental impact and qualify you for the credit. The SBTC is excellent for those who plan to integrate solar energy into new constructions or major renovations.
This tax credit encourages energy-efficient buildings, ultimately saving you money on energy costs. It supports the growth of sustainable living, contributing to New Mexico’s renewable energy goals.
Property Tax Exemption for Solar
New Mexico also offers a property tax exemption for solar installations. When you install a solar system, its value is exempt from property tax.
This means your property taxes won’t increase due to the added value of your solar system. By reducing overall costs, this exemption makes owning a solar system even more appealing.
For homeowners, this can translate to substantial savings, making clean energy more accessible and affordable.
New Mexico Net Metering
New Mexico has a net metering system that helps you make the most of your solar panels. Net metering lets you earn credits when your system produces more power than you use. These credits can lower your electricity bill.
When your solar panels make extra energy, it goes back to the grid. Your utility provider then credits your account. You can use these credits when your solar panels don’t produce enough power, like at night or on cloudy days.
It’s also good to note that net metering policies might differ based on your utility company. Some utilities may have slightly different rules or rates for the credits you earn.
New Mexico’s net metering policy is quite supportive, letting you maximize your investment in solar power. By understanding these policies, you can better manage your energy consumption and savings.
Are Solar Panels Worth it in New Mexico?
Adding solar panels to your New Mexico home can save you lots of money. With the average cost around $3.28 per watt, a 6-kW system could be just under $20,000 before incentives. Use federal tax credits to cut this cost by around $5,904, bringing the price to about $13,776.
In the long run, solar panels can lower your electricity bills. Many homes see big reductions each month, making the initial cost worth it. Plus, having solar panels can bump up your property value, a win-win. Homes with solar tend to sell faster and at higher prices.
The environment wins too. Solar energy doesn’t pollute, reducing our need for fossil fuels. By using solar power, you’re helping keep the Earth clean and combatting climate change.
Here’s what some locals have to say:
- “Our energy bills dropped by 60%! We should have done this years ago.”
- “Best investment ever. The savings on energy will pay off the panels in a few years.”
Want these savings for yourself? Contact Sunsoaked Solar for a free consultation. You’ll get all the info you need to decide if solar is right for you.
With New Mexico’s sunny climate and available incentives, starting your solar journey is easier than ever. The benefits make it a smart move for both your wallet and the planet.
FAQs About New Mexico Solar Incentives
Does New Mexico offer solar tax exemptions?
New Mexico offers a property tax exemption for solar energy systems. This means your added home value from installing solar panels won’t result in higher property taxes.
There are no sales tax exemptions on the purchase of solar equipment in New Mexico.
Does solar increase home value in New Mexico?
Installing solar panels increases a home’s market value. Reduced energy costs and increased energy independence make homes more attractive to buyers.
In sunny New Mexico, homes with solar panels are particularly appealing. Buyers often prefer these homes because of the state’s abundant sunshine.
What is the average cost of solar panels in New Mexico?
The average cost for residential installations in New Mexico is about $15,222 for a 5 kW system. Factors such as system size, panel quality, and installation complexity determine the cost of solar panels.
State and federal incentives can help reduce initial costs and result in significant savings over time.
Do you need a permit for solar panels in New Mexico?
Permits are typically needed for solar panel installations. They ensure that the setup meets local building codes and safety standards.
The process involves submitting necessary documentation and possibly paying fees. Inspections are needed to verify that the installation complies with local regulations and is approved by authorities.