New Mexico, characterized by its vast landscapes and clear skies, have approximated 280 sunny days each year, placing it among the top states for sunlight exposure. This abundance of sunshine positions New Mexico as a prime location for solar energy initiatives. The state actively promotes renewable energy with various incentives and programs to support solar adoption. The state has a number of solar incentives and rebates available to help residents save money on their solar energy systems. Here are some of the incentives available to state’s home and business owners:
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Federal Solar Investment Tax Credit (ITC):
Homeowners that qualify for the Solar ITC can take advantage of a tax credit for 30% of the total purchase price of their solar system, no matter the system size or cost. This credit applies to all solar projects that begin construction in 2023 and will last through 2033, at which point it will drop to 26%.
Net Metering:
Net metering in New Mexico is a billing arrangement for solar panel owners that credits them for excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can then be used to offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you not only save money but also contribute to a more sustainable energy future while helping maintain grid stability in New Mexico.
Renewable Energy Production Tax Credit (REPTC):
The state of New Mexico offers a Renewable Energy Production Tax Credit (REPTC) for solar installations. This incentive can reduce your state tax payments by up to $6,000 or 10% off your total solar energy expenses (whichever is lower). The tax credit applies to residential, commercial, and agricultural installations.
Sustainable Building Tax Credit:
The New Mexico state government will credit you on your taxes if you install solar as part of your sustainable building efforts on your home. In order to qualify, your home needs to be certified sustainable by the U.S. Green Building Council, and the value of the credit is determined by your certification level. You could earn as much as $6.50 per square foot for having a sustainable solar home.
Further information and programs can be found at the Programs.Dsireusa.org
