Maximizing Solar Savings in New Mexico: Incentives, Tax Credits, and Rebates
Maximizing Solar Savings in New Mexico: Incentives, Tax Credits, and Rebates
Blog Article
New Mexico boasts some of the highest solar energy potential in the country, making it an ideal location for homeowners looking to go solar. With abundant sunshine and a variety of solar incentives in New Mexico, residents can significantly reduce their upfront costs and long-term energy expenses. Understanding these incentives and how to claim them can make solar energy even more accessible and cost-effective.
New Mexico Solar Incentives and Rebates
Residents of New Mexico can take advantage of multiple programs designed to lower the cost of solar panels in New Mexico. From tax credits to net metering policies, these incentives make switching to solar a financially smart decision.
New Mexico Solar Tax Credit
One of the most significant incentives is the New Mexico Solar Tax Credit, also known as the Solar Market Development Tax Credit (SMDTC). This credit allows homeowners to claim up to 10% of their total system cost, capped at $6,000. To qualify, homeowners must obtain approval from the Energy, Minerals, and Natural Resources Department (EMNRD). Given the limited annual funding for this program, it's important to apply early.
Federal Residential Clean Energy Credit
In addition to state-level incentives, homeowners can claim the Residential Clean Energy Credit, formerly known as the Federal Investment Tax Credit (ITC). This credit covers 30% of your total system cost, including equipment, labor, and permits. However, homeowners must purchase their system outright or use a solar system loan to qualify—leased systems are not eligible.
New Mexico Net Metering
One of the best ways to maximize your savings is through New Mexico net metering. This policy allows solar owners to send excess energy back to the grid in exchange for credits on their utility bill. These credits can be used to offset future electricity costs when solar production is low. While investor-owned utilities are required to offer net metering, municipal utilities have different policies, so it’s important to check with your provider.
Additional Solar Rebates and Tax Exemptions
- Property Tax Exemption: Installing a solar system increases your home’s value, but thanks to the Renewable Energy Property Tax Exemption, you won’t pay additional property taxes on the added value.
- Sustainable Building Tax Credit (SBTC): If your home has U.S. Green Building Council certification, you may qualify for additional credits when incorporating solar energy into your sustainable building efforts.
- New Mexico No Cost Solar Program: Some homeowners may qualify for special programs that allow for solar installation with little to no upfront costs through financing and incentive options.
How to Claim the New Mexico Solar Tax Credit
To claim the New Mexico Solar Tax Credit, homeowners must:
- Install a qualifying solar system.
- Obtain approval from the EMNRD.
- File for the tax credit when submitting their state tax return.
With the right approach, these incentives can significantly lower the solar panel cost in NM and improve the return on investment.
Start Saving with SolarSME
With so many NM solar incentives available, now is the perfect time to switch to solar. At SolarSME, we help homeowners navigate the New Mexico solar program, apply for rebates, and maximize their savings. Contact us today to get started on your journey toward clean, affordable energy! Report this page