Solar Panels in New Mexico2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in New Mexico.
$15,000–$26,000
Avg system cost
$10,500–$18,200
After 30% ITC
6.8 hrs/day
Peak sun hours
$0.140/kWh
Avg rate
Is Solar Worth It in New Mexico?
Based on a home with a $150/month electric bill in New Mexico
Est. system size
4.8 kW
Gross cost
$13,821
Federal tax credit
−$4,146
State credit
−$1,382
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 4.6 years — then 15 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
New Mexico Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
New Mexico State
New Mexico Solar Tax Credit
10%
Up to $6,000 off your state income taxes
Additional New Mexico Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Solar equipment exempt from state sales tax
Solar Installation Cost in New Mexico by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,584,960 | $1,598,408/yr |
| 7 kW | $17,181,920 | $12,021,344 | $2,237,771/yr |
| 9 kW | $22,091,040 | $15,457,728 | $2,877,134/yr |
| 12 kW | $29,454,720 | $20,612,304 | $3,836,179/yr |
* Costs based on $2.90/W national average. New Mexico installer pricing may vary ±15%.
Get Your Exact New Mexico Solar Estimate
Enter your monthly bill and address for a personalized savings report using actual New Mexico electricity rates.
Get Free Solar Quotes in New Mexico
Compare quotes from certified New Mexico solar installers — free, no obligation.
Frequently Asked Questions — Solar in New Mexico
How much do solar panels cost in New Mexico?
Solar installation in New Mexico typically costs $15,000–$26,000 before incentives. After the 30% federal tax credit and New Mexico's 10% state credit, most homeowners pay $10,500–$18,200 net.
Is solar worth it in New Mexico?
Yes — New Mexico homeowners benefit from 6.8 average peak sun hours per day. The 30% federal ITC combined with 10% state credit up to $6,000 — excellent incentive + best sun in us make the financial case strong for most homeowners.
What state incentives are available for solar in New Mexico?
10% state credit up to $6,000 — excellent incentive + best sun in US. On top of state incentives, all New Mexico homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment. Solar equipment is exempt from sales tax in ${s.name}.
How long is the payback period for solar in New Mexico?
Based on New Mexico's average electricity rate of $0.140/kWh and 6.8 peak sun hours, most homeowners see payback in 4.6–6 years. Systems then produce free electricity for 15–20+ more years.
Does New Mexico have net metering?
Yes — New Mexico has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.