New Mexico offers a number of incentive programs to offset the costs of installing new solar energy systems. Rebates are best for reducing total costs, but none are available currently in New Mexico. There are many additional programs available through the federal government.
New Mexico Tax Credits
The Solar Market Development Tax Credit offers 10% credit on qualifying purchases and installation. For corporations there is a 6% credit available through the Advanced Energy Program. Businesses and residences alike qualify for a credit of $.027 kWh. There is also a program available for corporations or individuals with buildings or homes that are LEED certified, depending upon the square footage and the LEED certification level. Manufactures of solar equipment are eligible for Alternative Energy Product Manufacturers Tax Credit in the amount of 5%.
Installers and Contractors are eligible for a 100% deduction from their gross receipts tax for solar equipment sold or installed. El Paso Electric Company has a Renewable Energy Certificate program, and purchases customer’s kWh’s for a cost of $.13 each, as does PNM. Xcel Energy offers a production tax incentive of $10 kWh. Finally, there is a renewable bond program to help pay for solar energy systems on schools and state government buildings, and the tax earned on these bonds is exempt.
New Mexico does not offer and state-supported lending programs, but the federal government can provide loan programs.
Additional programs are available through the federal government and full details can be found at the DSIRE:Database of State Incentives for Renewables & Efficiency.