New Mexico Solar Incentives and Rebates
New Mexico offers a variety of incentives and rebates to homeowners, businesses, and organizations that install solar systems on their properties. These incentives are designed to make it more affordable and financially viable for individuals and groups to invest in solar energy, and to encourage the growth of the solar industry in the state.
The Federal Investment Tax Credit in New Mexico
The ITC is a federal tax credit that allows homeowners and businesses to claim a credit of 22% of the cost of their solar system on their federal income tax return. This credit can be used to offset the cost of the solar system, making it more affordable for homeowners and businesses to invest in solar energy.
State-Level Tax Incentives in New Mexico
New Mexico also offers a state tax credit for solar energy systems. The credit is 25% of the cost of the system, up to a maximum of $9,000 for residential systems and $90,000 for commercial systems. This credit is available to homeowners, businesses, and organizations that install solar systems on their properties, and can be used to offset state income taxes. For more information, visit the Energy, Minerals, and Natural Resources Department website at https://www.emnrd.nm.gov.
State-wide solar initiatives in New Mexico
New Mexico also offers several state-wide solar initiatives that are designed to encourage the growth of the solar industry. One of these initiatives is the Renewable Energy Certificates (RECs) program, which allows homeowners and businesses to earn RECs for each unit of renewable energy that they generate. These RECs can then be sold to other entities in order to offset the cost of the solar system.
In addition, the City of Albuquerque offers the GreenPath program, which provides rebates and incentives to homeowners and businesses that install solar systems on their properties. It’s worth noting that New Mexico conforms to the Modified Accelerated Cost Recovery System (MACRS) federal tax code, which allows for accelerated depreciation of solar energy property. This can provide a significant tax benefit for businesses that install solar panels on their property.
State-wide tax exemptions in New Mexico
New Mexico also offers state-wide tax exemptions for solar energy systems. These exemptions mean that solar systems are fully exempt from state property taxes, making it more affordable for homeowners and businesses to invest in solar energy.
State-specific laws on Solar Easements in New Mexico
In 2021, New Mexico passed the Community Solar Act, which allows for the creation of community solar gardens in the state. These gardens allow multiple individuals and businesses to share a solar system and receive credit for the power generated by the system on their utility bills. This act provides more opportunities for those who cannot install solar panels on their own property, to still have access to solar energy.
Net Metering in New Mexico
The power generated by solar panels in New Mexico is credited through net metering. Net metering allows homeowners and businesses to receive credit on their utility bills for the excess power that they generate. This excess power is fed back into the grid and can be used by other customers. Homeowners and businesses that generate more power than they use can accumulate credits on their utility bills, which can be used to offset the cost of their power usage in future months.
Benefits of Going Solar in New Mexico
Going solar in New Mexico offers a number of benefits for homeowners and businesses. One of the most obvious benefits is reduced electricity bills. By generating their own power, homeowners and businesses can save money on their utility bills each month. Additionally, solar energy systems can increase property value and improve home resale value, making it a smart investment for homeowners. Furthermore, the various tax incentives and rebates available in New Mexico make it more affordable for individuals and groups to invest in solar energy.
In conclusion, New Mexico offers a variety of incentives and rebates to encourage the growth of the solar industry in the state. These incentives include the Federal Investment Tax Credit, state tax credits, net metering, Renewable Energy Certificates, and state-wide tax exemptions. Furthermore, the Community Solar Act of 2021 allows for more individuals and businesses to have access to solar energy. The benefits of going solar in New Mexico include reduced electricity bills, increased property value, improved home resale value, and tax incentives. By investing in solar energy, homeowners and businesses can save money on their utility bills, make a smart investment, and help to promote the growth of the solar industry in the state.
FAQsWhat incentives are available for solar in New Mexico?
Federal and state tax credits, net metering, property tax exemptions, and solar renewable energy credits are available for solar in New Mexico.
Is solar energy reliable in New Mexico?
Yes, solar energy is reliable in New Mexico due to the state’s high levels of solar radiation.
Does solar work in all parts of New Mexico?
Yes, solar works in all parts of New Mexico, however, the amount of energy produced can vary depending on the amount of solar radiation in the area.
What is the average cost of installing solar in New Mexico?
The average cost of installing solar in New Mexico is approximately $10,000 to $12,500, depending on the size and complexity of the system.
What type of maintenance is required for solar in New Mexico?
Regular maintenance is recommended for solar systems in New Mexico, including cleaning the panels and checking the wiring. You can find expert reviews of solar maintenance companies in New Mexico at SolarEmpower.