Tax incentives continue to grow in the U.S. as solar power becomes more recognized for its green energy production and efficiency. Federal and local governments encourage residents in the states to switch to solar power through different incentives.
In this blog, we’ll look at the existing solar panel tax credits and incentives in New Mexico and answer the following questions:
- Does New Mexico offer solar incentives?
- Is New Mexico paying for solar panels?
- Can I get free solar in New Mexico?
- How much does it cost to install solar panels in New Mexico?
- What are the tax rebates for 2023 in New Mexico?
- Does solar increase home value in New Mexico?
Does New Mexico Offer Solar Incentives?
New Mexico is one of the many states that offer a variety of incentives for residential solar panels. These include state tax credits, net metering programs, tax exemptions, and federal solar tax credits.
State Solar Tax Credits
The New Mexico solar tax credit can be applied to homeowners, businesses, and farms. It reduces your state tax payment by 10%, saving up to $6,000.
Net Metering
Net metering in New Mexico allows homeowners to receive renewable energy credits for their solar system’s excess energy and potential energy or financial rewards.
Tax Exemptions
The New Mexico tax credit (Solar Market Development Tax Credit), managed by the Natural Resources Department, gives homeowners a 10% state tax deduction on the cost of solar installations.
Federal Investment Tax Credit (ITC)
The federal government allows you to claim a 30% tax credit based on your system’s equipment, labor, and permitting. Purchasing or financing your solar energy system allows the tax credit to go directly to your federal tax return.
Is New Mexico Paying for Solar Panels?
New Mexico State offers several incentives to cover certain costs and taxes to encourage green energy. The Renewable Energy Property Tax Exemption exempts new solar energy systems from your property taxes in New Mexico. Furthermore, net metering credits you for the extra energy your system produces that can be fed back into the grid.
There are several ways to reap the benefits of your solar system and make back portions of your upfront costs. Likewise, your system is designed to eventually bring a return on your investment by reducing your electricity bill and making you independent of the grid.
Can I Get Free Solar in New Mexico?
With a Power Purchase Agreement (PPA), a third-party solar company can install and maintain your solar energy system. Essentially, they will own your solar energy system, covering the fees, and you’ll agree to a fixed rate to purchase the electricity generated directly from them. While this eliminates upfront costs for homeowners, the costs can vary for continuous purchases from the third party.
How Much Does it Cost to Install Solar Panels in New Mexico?
Solar panels in New Mexico tend to cost between $13,000 to $18,000 to install. The average gross price sits at $16,400. This includes equipment, labor, and other additional costs during installation.
Pricing will vary depending on the company you go with, the type of solar panels, the size of your solar energy system, power usage, and location. Similarly, grid-tied and off-grid solar panels have several differences that can impact costs.
What are the Tax Rebates for 2023 in New Mexico?
There aren’t any solar rebates in New Mexico, but the existing tax incentives can significantly offset costs and save you lots of money. For example, the 10% solar tax credit for purchased home solar energy systems offers up to $6,000 in tax reductions.
Does Solar Increase Home Value in New Mexico?
One incredibly beneficial part of solar panel installation is that it can increase your property value but won’t add extra taxes. According to Zillow, solar panels in New Mexico can increase your home’s value by 4.1% on average.
Many homebuyers are looking for energy efficiency and to be more environmentally conscious. Because of this, solar panels can add a lot of allure to your home and lead to people paying a higher price for your home over other homes in the neighborhood without a panel system.
Our World Energy is a Top Leader in the Solar Industry
Our World Energy offers cost-effective solar power options that empower you, giving you energy independence from your utility company through renewable energy that works.
Contact us today to learn more about who we are and how we can serve you.
The post New Mexico Solar Panel Tax Credits and Incentives appeared first on Our World Energy.
