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Solar Panels in New Mexico: Cost, Savings, and Rebates

Solar panels against a blue sky with a picture of the flag State of New Mexico

Solar Panels in New Mexico: Cost, Savings, and Rebates

New Mexico produces enough solar energy to power over 344,000 homes. Utilizing its incredible sunlight, the Land of Enchantment is steadily becoming one of the best states for renewable energy. This allows homeowners to save thousands on solar panels in New Mexico.

However, you might not know where to start with a budget. Fortunately, we’ve got that covered. In this article, we introduce the average cost of solar in New Mexico along with the factors that affect it. We’ll also help you discover how much you can save by making the switch. Continue reading to learn about the price of solar in the Land of Enchantment.

Average Cost of Solar Panels in New Mexico

The Land of Enchantment is also the land of affordable solar. New Mexicans can purchase solar panels for as little as $2.44 per watt, some of the lowest rates in the country. For a standard 6kW system, this equals about $14,640.

However, even with the low cost of equipment, homeowners might hesitate when considering solar panels in New Mexico. The state features some of the lowest electricity bills at just $98.08 per month. Well below the national average, homeowners in New Mexico might feel little motivation to make the switch.

However, those that have a desire to save on utilities while reducing their carbon footprints can lower the cost of an installation. New Mexicans can take advantage of the federal solar tax credit, which returns 30% of all purchases made toward a new array. Those purchasing a 6kW system can see the price drop from $14,640 to $10,248.

How Much Solar Do New Mexicans Need?

While the above numbers already show a low cost for solar panels in New Mexico, homeowners in the Land of Enchantment can save even more with a properly sized array. To find out how much wattage your system needs, you’ll need to do some simple math. Just take your household’s daily power usage and divide it by the amount of sunlight you receive.

We’ll show you how to do this using New Mexico’s averages.

Homeowners in the Land of Enchantment use about 22.3kWh per day (or about 670kWh per month). When divided by the state’s average peak sun of 6.77 hours, we learn that our solar panel system needs to produce 3.3kW an hour. For an array of this size, New Mexicans could expect to pay just $8,052, about $6,500 less than usual.

Now that you know how to figure out the wattage of your system, you can accurately budget for an installation. To find the average sunlight for your nearest city, check out this New Mexico sun chart.

Ranchos de Taos valley green landscape in summer and solar panels during sunset with sun rays in New Mexico
With the proper wattage, homeowners could save about $6,500 on solar panels in New Mexico.

New Mexico Solar Cost Factors

As we demonstrated in the example above, sunlight influences the overall cost of solar panels in New Mexico. In conjunction, geography also plays a role. Homeowners living in the mountainous region of the state, for instance, may receive less than average sun. In fact, those living near Tucumcari may only receive 6.0 hours of sun a day, about 45 minutes less than usual.

For more on how sunlight and location can affect the price of solar, compare New Mexico to some of its surrounding states:

Additionally, homeowners can save money on solar panels in New Mexico by choosing the appropriate type of equipment. In the Land of Enchantment, most residents can get away with polycrystalline panels, which are less efficient than monocrystalline but are more affordable. However, if you have a smaller roof, you may want to opt for the latter.

Finally, it’s essential to vet your solar installer. While you may not want to spend premium money on an installation company, those that undercut the competition likely use lower-quality equipment or offer less coverage. And with nearly 50 installers in the state, you have a decent list to choose from.

Can Solar Energy Save New Mexicans Money?

With great rates on equipment and some of the best sunlight in the country, solar panels in New Mexico are a worthwhile decision. Homeowners that install a new array can save thousands on utility bills. Here’s how to determine your total savings.

First, you need to determine how long it will take to pay off your system. Using an annual average electricity bill of $1,176.96, New Mexicans can cover the price of a 6kW array in about 12.4 years. While this is slightly longer than usual, homeowners with a smaller array can reduce that time. 

With the system paid off, you’ll start to see net returns on your power bill. Considering the average lifespan of solar panels in New Mexico of 20 to 25 years, you could expect to save around $8,945 to $14,830. And with a slew of solar benefits, these savings can increase significantly.

Solar Panels in New Mexico: Rebates, Credits, and Incentives

In addition to its quality conditions, the state of New Mexico also has great state-level incentives for solar panels. When used to install a new system, homeowners can save thousands more and even get paid for the energy produced.

Right off the bat, there are savings to be had in the federal solar tax credit. New Mexicans taking advantage of the 30% return on solar purchases can cut the price of a 6kW array by almost $4,500. And with state-level tax credits, tax exemptions, and net metering, that number only rises. For a list of solar benefits in New Mexico, check out this article.

Frequently Asked Questions

Is solar worth it in New Mexico?

New Mexico has some of the most affordable prices on panels and the best sunlight in the country. While homeowners already pay low electricity rates, an installation could result in savings of nearly $15,000 or more on utilities.

How much does solar cost in New Mexico?

In New Mexico, homeowers can expect to pay about $2.44 per watt for solar energy. This equals about $14,640 for a 6kW system. This price can fluctuate depending on several factors, including sunlight, location, equipment type, and installation quality.

How long does it take for solar panels to pay back in New Mexico?

Based on an average annual electricity bill of $1,176.96, New Mexicans can expect to pay off a 6kW system in about 12.4 years. While this is slightly higher than in other states, this timeframe can drop with a smaller array.

Can you get a federal tax credit for solar panels in New Mexico?

Residents of New Mexico can utilize the federal solar tax credit, which offers a 30% return o all solar purchases. This includes any equipment, labor, and even sales tax. New Mexicans that take advantage of this program can save nearly $4,500 on the cost of a 6kW system.

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