Estimated Savings for a Typical New Mexico Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$22,000
State Incentive
-$6,000
Net Cost
$16,000
Annual Savings
$1,914
Payback Period
8.4 yrs
25-Year Savings
$49,366
CO₂ Offset/yr
13,754 lbs
New Mexico Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
$6,000
New Mexico State Incentive
New Mexico offers a 10% state tax credit up to $6,000.
Net Metering Policy: Full Retail
Top utility in New Mexico: Public Service NM. View full incentives detail →
Solar Costs by City in New Mexico
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Albuquerque | $1,883 | 8.5 | 564,559 | Public Service NM |
| Las Cruces | $1,837 | 8.7 | 111,385 | El Paso Electric |
| Rio Rancho | $2,033 | 7.9 | 104,046 | Public Service NM |
| Santa Fe | $1,898 | 8.4 | 90,863 | Public Service NM |
| Roswell | $2,035 | 7.9 | 48,611 | Xcel Energy NM |
| Farmington | $2,042 | 7.8 | 45,877 | Public Service NM |
| Hobbs | $1,779 | 9 | 40,290 | Xcel Energy NM |
| Clovis | $1,704 | 9.4 | 39,859 | Xcel Energy NM |
| Alamogordo | $2,020 | 7.9 | 31,227 | El Paso Electric |
| Carlsbad | $2,222 | 7.2 | 29,613 | Xcel Energy NM |
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Quick Facts: New Mexico
- ⚡ Avg rate: $0.128/kWh
- 🌞 Peak sun: 6.4 hrs/day
- 🏭 Top utility: Public Service NM
- 📋 Net metering: Full Retail