How much do solar panels cost in New Mexico?
Installing solar panels on your home can cost anywhere from $10,000 to $30,000 or more, although individual costs vary. The size of your system is one of the most important factors in determining how much you should pay.
The typical size of a system in New Mexico is 7 kilowatts (kW). To determine how much electricity your home needs, access your online electricity bill and find out how much electricity you used last year in kilowatt hours (kWh). Divide your annual kWh by 1,200 to determine the correct system size.
For example, a typical home in New Mexico uses about 7,752 kWh per year. So you need a 6 or 7 kW system to provide enough power.
"What is the difference? kW and kWh
Average cost of system size in New Mexico
| 4kW | 5kW | 6kW | 7kW | 8kW | 9kW | 10kW | |
|---|---|---|---|---|---|---|---|
| Before the federal tax credit | $10,720 | $13,400 | $16,080 | $18,760 | $21,440 | $24,120 | $26,800 |
| After the federal tax credit | 7504 dollars | $9,380 | $11,256 | $13,132 | $15,008 | $16,884 | $18,760 |
Source: Ecowatch
Are solar panels worth it in New Mexico?
Because of the financial and environmental benefits, solar panels are valuable to many New Mexico homeowners.
Like many Albuquerque residents, Douglas switched to solar energy to reduce his electric bill. Since the switch, the monthly bill has dropped from $300 or $400 to just $8 or $9.
One solar customer, Larry from Albuquerque, told us that he switched to solar energy to save on rising electricity costs, especially since there is not a single commercial energy provider in his area.
“The solar system will pay for itself approximately 11 years after initial installation,” Larry said. “The remaining 14 years of guaranteed solar production are worth the investment.”
New Mexico receives an average of 6 to 7 hours of sunlight per day.
“We love the sun, and since we live in New Mexico and get a lot of sun, it made sense for us to get some sun,” Betsy told us from Albuquerque. “We were contacted the first week of July, but our first bill was $100 less.”
Those of us who spoke also emphasized the savings. “We’ve been in business for about a year and a half and couldn’t be happier,” Kali of Rio Ranch told us. “We saved thousands of dollars compared to what we would have paid.”
Benjamin, of Albuquerque, says one of the dangers is “getting all the permits.” Apparently “it was a huge pain in the ass and waiting for the PNM to do something was like pulling teeth.” “The process took eight months,” Benjamin said. “But if you have patience, it’s worth it.”
Many solar installation companies will take care of the permitting process for you. Therefore, be responsible for obtaining permits and scheduling any necessary inspections with any plumber you choose to work with.
“Still not sure? Advantages and disadvantages of solar energy.”
The cost of using solar energy in New Mexico
The final cost of your solar system may vary depending on a number of factors. These include the size of the facility, the quality of the panels, the company you choose, permit fees and the condition of your roof. Here's what you need to keep in mind.
Costs for solar systems
The cost of your equipment may depend on several factors: the size of the facility and the efficiency of the panels you choose to convert sunlight into electricity. The more efficient the panels, the fewer are needed, which can reduce overall costs.
» Compare: The most efficient solar modules
Another consideration is the battery. Solar panels are optional and their inclusion can add an additional $7,000 to $18,000 to your bill.
You may want to consider a monitoring system for your solar system. These systems can alert you when there is a problem with your dashboard and help you keep a clean record. They typically cost between $80 and $400, but some companies can provide them for free with your solar power system.
The condition of your roof
The size of your solar panels is important. Therefore, make sure that your roof can withstand the load. Inspecting your roof before installation is a smart decision.
You need a strong and durable roof. Solar panels typically last 25 to 30 years, and you want your roof to last a long time. If this is not the case, you will have to pay more to have the panels removed during roof renovation.
» Should you replace your roof before going solar?
How do you pay?
There are several options for financing your solar system, each with its own advantages and disadvantages.
When you pay upfront , you acquire full ownership and reduce costs by not having to pay interest on the solar loan. However, not everyone can afford a large initial investment.
Solar panel loans allow the borrower to borrow the funds needed and pay them back over time. Although you'll pay higher interest on your loan, the savings on your solar power bill can help offset this.
You can also lease equipment or enter into a power purchase agreement (PPA). With solar leasing you can rent equipment virtually. Typically no upfront payment is required, but you will not own the system.
“The advantage of not owning it is that I don't have to maintain the system. "So if something breaks or needs to be replaced, that's [the solar company's] responsibility," said Albuquerque's Thomas, "and I didn't do it." .
A PPA is an agreement between you and a third-party company that owns and installs the panels in your home. You agree to purchase the electricity they generate at a fixed price, which helps reduce your electricity bills.
If you decide to lease or enter into a PPA, remember that you do not own the equipment and are not eligible for the federal solar tax credit.
“Which one is right for you?” Solar panels: rent or buy.”
Other cost factors
There are several other costs to consider:
- Maintenance: Although solar panels require minimal maintenance, additional costs may apply for repairs or replacement of components, as well as regular cleaning.
- Installation and Labor: Typically, solar companies include the cost of installing solar panels and labor in the total price of the solar system. However, make sure of this before signing the contract.
- Permits: Most cities require permits for solar installations, which can increase the overall cost of your system. According to Mary of Albuquerque, it can also take a long time: “The only real delay in the entire process was the government, county and city inspections, and it dragged on.” »
Solar incentives, tax credits and rebates in New Mexico
The federal solar investment tax credit (ITC) can save you a lot of money by going solar in New Mexico. If you install a residential facility before the end of 2032, you will receive a federal tax credit equal to 30% of the total cost of the facility. The loan ratio fell to 26% in 2033 and to 22% in 2034.
The average cost of an ITC in New Mexico in 2023 is $5,628.
New Mexico also offers other incentives for solar energy storage. Homeowners can receive a 100 percent property tax deduction on the value your solar system adds to your home and a gross income tax deduction on your entire solar system. The state also offers tax credits for homes that use solar panels.
If you cannot pay upfront, you can apply for the New Mexico Property Assessment Clean Energy (PACE) financing program. Homeowners can get a low-interest, fixed-rate loan that is repaid through fees plus property taxes.
» Explore: Solar incentives in New Mexico
Compare solar panel installation companies in New Mexico
Compare the best solar companies in New Mexico below. Read our guide to the best solar companies to learn more.
» Tips: How to get the best solar price
| solar power | Sun | Solar charging | Sunny Nova | greenhouse system | ||
|---|---|---|---|---|---|---|
| first class |  | Read the review | Customer Review 2190 Reviews2190 Reviews | Free offer | Payment options Money, credit, leasing | guarantee Between 10 and 25 years old |
| first class |  | Read the review | Customer Review 2684 Reviews2684 Reviews | Free offer | Payment options Money, credit, leasing | guarantee 25 years |
| first class |  | Read the review | Customer reviews 103 reviews 103 reviews | Free offer | Payment options Money loan | guarantee the changes |
| first class |  | Read the review | Customer reviews 101 reviews 101 reviews | Free offer | Payment options Money loan | guarantee 25 year system guarantee |
| first class |  | Read the review | Buyer Reviews 48 Reviews48 Reviews | Free offer | Payment options Money loan | guarantee Depending on the system |
frequently asked Questions
How are the costs of solar energy changing in New Mexico?
According to the Solar Energy Industries Association, the cost of solar energy in New Mexico has fallen 43 percent over the past 10 years.
How much can I save with solar panels?
If you pay upfront, the average solar energy savings in New Mexico over 25 years is $15,413. Although you can't cover 100% of your electric bill with solar energy, you can expect between 82% and 111% efficiency, according to EnergySage.
» Discover: The largest place to save solar energy
How does net metering work in New Mexico?
If your solar system produces more energy than your home needs and you don't have solar panels to store it, you can send the excess energy back to the grid and pay for it. This is called net accounting.
In New Mexico, electric companies must set the price you pay for the solar energy you generate at home. To participate, you must request a connection with your service provider.
» Compare: The best solar energy monitoring systems
How many solar panels do I need for my home?
The number of solar panels you need depends on your home's electricity consumption. The average monthly energy consumption in New Mexico is 646 kWh. A 2,500 square foot home typically requires 24 solar panels.
What different types of solar inverters are there?
There are two main types of solar inverters: string inverters and microinverters. String inverters connect different modules and direct the electricity to where it is converted into electricity that your home can use. Microinverters are small inverters that are added to each panel. They avoid power losses better than string inverters.
» Explore: What is a grid-connected solar system?
Can I get free solar panels in New Mexico?
There is no free solar panel program in New Mexico. You can lease or take out a PPA with little or no upfront cost.
» Free solar panels: Are they really free?
last row
Although more expensive than other states, the total cost of your New Mexico solar installation will vary depending on the equipment you purchase, labor costs, permit fees, construction fees, etc., maintenance, and the cost of preparing your roof for the panels. However, thanks to tax breaks and government funding, you can save a lot of money on solar energy.
Solar Energy Costs: New Mexico Compared to Neighboring States
| Acquisition cost* | Value of CII (30%) | Typical system size | Average consumption per watt | To return** | Estimated net savings | |
|---|---|---|---|---|---|---|
| New Mexico | $18,760 | $5,628 | 7kW | $2.68 | 12 years | $15,413 |
| Arizona | $30,015 | 9004 dollars | 11.5kW | $2.61 | 12 years | $23,891 |
| Utah | $21,440 | 6432 dollars | 8kW | $2.68 | 14 years | $10,202 |
| Colorado | $20,176 | 6053 dollars | 7.5kW | $2.69 | 12 years | $14,479 |
| Texas | $30,934 | $9,280 | 8.5kW | $2.69 | 13 years | $21,350 |
| OK | $28,820 | $8,646 | 11kW | $2.62 | 14 years | $14,190 |
*Before the Federal Solar Investment Tax Credit (CCI); ** When paid in full
Source of the article
- Ecowach, “Solar Consumption in New Mexico.” November 19, 2023 November 19, 2023 November 19, 2023
- शक्ती शुष्टी अग्य पुनरनबिचारायोगग्यागियिशन ्विविक्षा अगिश्य स, “Federal Solar Photovoltaic Technology” November 19, 2023 November 19, 2023
- सामिती, राज्य द्वर्रररिती । November 19, 2023 November 19, 2023 November 19, 2023
- Solar Energy Industry Association Mexico Solar. November 19, 2023 November 19, 2023 November 19, 2023
- DSIRE, “New Mexico Program.” November 19, 2023 November 19, 2023 November 19, 2023
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