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New Mexico Solar Incentives

With Sunrun, You Can Maximize Your Solar Potential

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New Mexico is the second sunniest state in the nation.1

-45%

New Mexico solar price drop over the last five years.2

100%

State electricity generation that will come from renewable energy sources by 2045.3

New Mexico basks in an average of 293 sunny days per year,4 which is just one of several reasons to go solar in the Land of Enchantment. The state also has some of the best solar incentives in the country, such as federal and state solar tax credits,* Solar Renewable Energy Credits (SRECs), as well as property and sales tax exemptions.5

As the U.S.’s leading residential solar and energy storage company,6 Sunrun works to ensure you can create and store your own solar energy at home to get outage protection and reduce your carbon footprint while enjoying New Mexico’s solar incentives.

Solar Incentives, Tax Credits, and Rebates in New Mexico*

Incentive

Value

Federal Solar Investment Tax Credit (ITC)**

The 26% federal tax credit is available for purchased home solar systems installed by December 31, 2022.7

New Solar Market Development Income Tax Credit

The 10% state solar tax credit is available for purchased home solar systems in New Mexico. (Max. $6,000 tax reduction.)8

Solar Renewable Energy Credits (SRECs)

El Paso Electric Company (EPE) and Public Service Company of New Mexico (PNM) customers can get compensation per kilowatt-hour (kWh) produced by their systems.9,10,11

Solar Energy System Property Tax Exemption

Property tax exemption on the added home value from the rooftop solar system.12

Solar Installation Sales Tax Exemption

5.125% home solar system state sales tax exemption.13,14

New Mexico Sustainable Building Tax Credit (SBTC)

Tax credit for new constructed homes with solar panels. (2,000 sq. ft cap.)15

Find out If You Qualify for New Mexico Solar Incentives

Learn the Details of New Mexico Solar Incentives

Buy and install new solar panels in New Mexico in 2021, with or without a home battery, and qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.7

Average-sized 5-kilowatt (kW) system cost in New Mexico: $12,790 Approximate system cost in NM after the 26% ITC in 2021: $9,46516

Buy and install a new rooftop solar panel system in New Mexico and qualify to receive a 10%state income tax credit of the total cost, thanks to the New Mexico Solar Tax Credit. (Max. $6,000 state tax reduction)8

According to the NM Energy Conservation and Management Division (ECMD), state taxpayers who install a solar thermal or photovoltaic system on or after March 1, 2020 are eligible for this non-refundable tax credit on a first-come, first-serve basis.8

If you’re an EPE or PNM customer, you can earn SRECs or Renewable Energy Certificates (RECs) for every kilowatt-hour (kWh) of solar energy your system creates in New Mexico based on market value.9,10,11

Add a new solar panel system to your New Mexico home and your property taxes won’t go up.12 Installing a system may also help you build home value.

When you buy a new solar power system in New Mexico, you won’t pay sales tax on the system.13 The exemption is for 100% of the sales tax of a solar installation used to provide space heat, hot water, or electricity to your home. This can save you 5.125% right off the bat.14

Qualify for up to $6.50 per built sq. ft with a 2,000 sq. ft cap when you install a new home solar system. In order to qualify, your home needs to be certified sustainable by the U.S. Green Building Council.15

Going Solar with Plenty of Perks and Options—What's Not to Like?

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