New Mexico Solar Guide 2026
Everything New Mexico homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about New Mexico solar
New Mexico's 10% state tax credit (up to $9,000) pairs with excellent solar resources (6.1 peak sun hours) for strong economics. Despite moderate rates, high production makes the numbers work.
Peak sun hours
6.1
hrs/day avg
Avg electricity rate
13.0¢
per kWh
Median install cost
$2.7/W
before incentives
Typical payback
9 yrs
8 kW system, avg usage
Typical 8 kW system in New Mexico
Annual production
17,812 kWh
Year-1 savings
$2,316
System cost (est.)
$21,600
No federal tax credit — Section 25D expired December 31, 2025.
New Mexico Net Metering Policy
Full retail net metering
New Mexico requires full retail net metering under the Efficient Use of Energy Act. PNM and other utilities credit excess at retail rate. Excess credits roll monthly and settle annually.
New Mexico Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓State tax credit: 10% of cost (up to $9,000)
- ✓Property tax exemption
- ✓Sales tax deduction on solar equipment
Top Utilities in New Mexico
Interconnection timeline: 3–7 weeks
Calculate your New Mexico solar economics
Our calculators are pre-filled with New Mexico data. Run any tool below.