NEW MEXICO
Solar in New Mexico
New Mexico is a dry desert state with an average of 278 sunny days and only 60 rainy or snowy days each year.* Having plentiful access to bright sunlight places New Mexico is in an optimal position to make the most of solar energy production. And with over 30,513 statewide solar installations thus far, New Mexico is taking advantage of its uniquely sunny climate.*
New Mexico continues to improve its solar energy generation each year. In January 2021, the state announced a renewable energy lease for the Wildcat Solar Power Plant, spanning 960 acres in McKinley County.*
Solar potential in New Mexico?
New Mexico has a great potential for solar energy. The state receives an average of 5.2 hours of sunlight per day, which is above the national average of 3.8 hours of sunlight per day. This means that New Mexico has a good potential for solar energy generation.
New Mexico produces 1,210.9 MW of solar power through its thousands of solar panel installations across the state.* These installations generate enough solar energy to power 287,628 homes and allow New Mexico to power 6.4% of its electricity through solar energy
Cost of solar in New Mexico?
The cost of a home solar system can vary, even in the same state, due to a range of factors. These include:
The angle of the roof
The quality of the solar panels
Weather
The household’s energy needs
In New Mexico, we found that the cost of owning a 5 kW solar system ranges from $11,900 to $26,450, or in other words from $2.38 to $5.29 per watt—and that’s before considering the benefits of any available tax credits or incentives listed below.
Advantages?
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Reduced electricity bills: Solar panels can generate electricity for your home, which can help you reduce your electricity bills. The amount of savings you can expect will vary depending on the size of your solar system, the amount of sunlight your home receives, and your current electricity rates.
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Increased home value: Solar panels can increase the value of your home. A study by the National Bureau of Economic Research found that homes with solar panels sell for an average of $15,000 more than homes without solar panels.
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Environmental benefits: Solar panels are a clean and renewable source of energy. They do not produce any emissions, which can help to reduce air pollution and greenhouse gas emissions. Solar panels can also help to make New Mexico a more sustainable state.
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State incentives: New Mexico offers a number of incentives for homeowners who install solar panels. These incentives can include tax credits, rebates, and grants.
Now is the most affordable time to switch to solar power in New Mexico. The price of installing solar panels for homes has fallen 43% over the last five years, making going solar less burdensome on the budget than ever before.
Additionally, with the savings on energy bills that New Mexico homeowners can produce after switching to solar, some New Mexico families have even profited off installing solar panels. The average home in New Mexico saves $25,526 during the 20 years following their solar purchase and installation.*
Even better, New Mexico homeowners take an average of just 10.41 years to pay back their solar panel installations with the savings they’ve accrued.* In other words, going solar is a wise investment that pays for itself over time
Disadvantages?
Shade: Solar panels need direct sunlight to generate electricity. If your home is in a shady area, or things are covering your panels you may not be able to generate as much electricity with solar panels.
Weather: Some Solar panels can be damaged by hail, snow, and strong winds. However, our solar panels are designed to withstand these conditions and even extreme weather conditions like hurricanes, tornado, and blizzards.
Panels aesthetic: Our solar panels are different. They are all black, sleek, and thin. They have a more modern look. Some people find solar panels on homes unattractive and if your feel like that we also offer Ground mount installations. It’s a great option if you have open land that receives good sunlight.
New Mexico State policies?
These policies include:
Net metering: New Mexico has a net metering policy that allows homeowners to sell excess solar power back to the grid at the retail rate. This means that for every kilowatt-hour (kWh) of solar power that you generate and send back to the grid, you will receive a credit on your electricity bill.
Property tax exemption: New Mexico exempts homeowners from paying property taxes on the increased value of their home that is due to solar panels. This means that if you install solar panels and your home value increases by $10,000, you will not have to pay property taxes on that $10,000.
Solar Renewable Energy Certificates (SRECs): New Mexico offers Solar Renewable Energy Certificates (SRECs) to homeowners who generate solar power. SRECs are tradable certificates that represent 1 megawatt-hour (MWh) of solar generation. Utilities are required to purchase SRECs from solar generators in order to meet their renewable energy goals. The price of SRECs varies depending on the market, but they can provide an additional source of income for homeowners who generate solar power.
Solar Renewable Portfolio Standard (RPS): New Mexico has a solar RPS that requires utilities to generate a certain percentage of their electricity from solar power. The RPS is currently set at 2.5%, and it is scheduled to increase to 5% by 2030. This policy is expected to help drive demand for solar panels in New Mexico.
New Mexico Energy Efficiency and Renewable Energy Act: The New Mexico Energy Efficiency and Renewable Energy Act was passed in 2017. This law sets a number of goals for energy efficiency and renewable energy in New Mexico, including:
Increasing energy efficiency by 20% by 2030
Generating 25% of electricity from renewable sources by 2030
Providing financial assistance to low-income households to make their homes more energy efficient
New Mexico officials want residents to switch to solar, which is why the state offers a generous tax credit for homeowners who install solar systems. The New Mexico Solar Market Development Tax Credit is calculated based on 10% of the entire installation cost, producing a maximum savings of $6,000 per taxpayer each year.*
Along with the above tax credit, residents can receive additional tax incentives if they certify their homes with the U.S. Green Building Council.* Achieving this certification could earn New Mexico homeowners as much as $6.50 per square foot in the form of an income tax credit.
Some New Mexico energy companies also offer Solar Renewable Energy Credits (SRECs), which allow residents to receive compensation for every kWh of solar energy their systems produce.* This net metering program can reduce the overall expenses involved in going solar.*
Finally, the federal investment tax credit program provides New Mexico residents who install solar systems on their homes with a 26% income tax credit.*
Maintaining solar panels?
Solar panels are relatively low-maintenance. However, you should have them cleaned every few years to remove dirt, dust, and debris. You can clean your solar panels yourself, or you can hire a professional to do it for you.
What's the best way to go solar?
Are you interested in going solar in Arizona? If so, we can help!
Before going solar, be sure to keep in mind factors that will affect the output of clean energy to your home. For instance, South-facing roofs generate the most energy, followed by west-facing roofs. North-facing roofs generate the least amount of energy. We look into multiple aspects to make sure you have the most effective setup such as roof orientation, roof pitch, shade, and weather.
We offer a free virtual consultation and savings report to help you determine if solar is right for you. We will also help you access solar incentives and rebates to reduce the cost of installation.
Freedom Forever solar panels system is Top-Tier and backed by a 25-year full system production guarantee. We also offer a satisfaction guarantee, so you can be sure that you are making the right decision and test it out stress free.
If you are interested in learning more about solar power in Arizona, please contact us today for a free virtual consultation.
We look forward to helping you make the switch to solar!