In addition to the federal tax credit, New Mexico residents can take advantage of a state tax credit, net metering, and tax exemptions by installing solar panels.
The 10% tax credit, which is applicable to solar installations for homes, businesses, and farms, can lower your state tax payments by 10%, or up to $6,000, in New Mexico.
Net metering is a New Mexico law that gives you credit for the surplus energy your solar system generates, which you can subsequently redeem for energy or money.
Sustainable Building Tax Credit: If you install solar as part of your home's sustainable building initiatives, the state of New Mexico will grant you a tax credit. Your home must be certified sustainable by the U.S. Green Building Council in order to be eligible. The value of the credit depends on the degree of certification, and it can be up to $6.50 per square foot.
Customers of energy providers like El Paso Electric and electric co-op Central New Mexico Electric (CNMEC) can receive payment or renewable energy credits for each kilowatt-hour (kWh) of electricity generated by their personal solar panels.
Additional details on solar tax credits and state incentives for renewable energy in New Mexico may be found in the Database of State Incentives for Renewables and Efficiency (DSIRE).
Solar Property Tax Exemption in New Mexico
You won't incur additional taxes as a result of installing a solar system, but it will raise the value of your home. Any new solar energy system installed in New Mexico will be free from your property tax assessment thanks to the renewable energy property tax exemption. This significant incentive can help you quickly reach a net positive financial return and recover the cost of your solar system.
Regional incentives Net metering programs, which certain municipal utilities may also provide, are provided by all New Mexico public utility companies. There can be additional solar tax credits offered by your city, county, or power company, and they might be tailored to you.