## Solar in New Mexico New Mexico gets more sunshine than almost anywhere in the country — making it one of the best places to go solar. At Palmetto, we’ve helped thousands of homeowners across the U.S. navigate solar installation, and we’re here to help you do the same. With [home solar panels](/content/solar/solar-panels-for-home/index.html), New Mexico homeowners can put that sunshine to work on a grid where electricity prices have risen 11% since 2020. Whether you’re just starting your research or ready to take the next step, this guide covers everything you need to know about solar installation in New Mexico — from how the process works to what it costs. ### NEW MEXICO by the Numbers [19th](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States [57k](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels [6.4](/content/local/peak-sun-hours/index.html) Average daily peak sun hours [~$58k](/content/local/new-mexico/#solar-cost-calculator/index.html) New Mexico average savings over 25 years ## New Mexico Solar Panel Cost Curious what solar actually costs in New Mexico? This calculator is built on real installation data from Palmetto customers across the state — from Albuquerque and Santa Fe to Las Cruces and Rio Rancho. See your estimated monthly lease payment through our LightReach program (no upfront cost required), or explore a cash purchase — side by side. ### Lease ### Cash Purchase System Size This system size is designed to offset approximately **100%** of the average electricity usage for a home in New Mexico. #### Recommended System 6.15 kW Typical for your home size in NM #### Your Monthly Payment Estimated monthly cost with LightReach $77/mo As low as $77/mo **Why Lease Solar?** - No upfront investment - Palmetto handles all maintenance - 90% Production Guarantee - Comprehensive protection program included #### Cost Breakdown Your estimated investment - System Cost: $19,387 - Cost Per Watt: $3.15/W - State Incentives: $-1,938 - Final Cost: $17,448 ### Savings Your total financial benefit - Monthly Savings: Average utility bill reduction $131 - Payback Period: Break-even point 9.7 years - 25-Year Savings: $57,611 [Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic) ## Palmetto Reviews I got my solar system a few months ago and have already seen a **huge reduction** in my power bill. Palmetto did a great job on my **install** and have been good to work with. I am looking forward to having no light bill at all one day as I reduce my carbon footprint. **Solar is the new power source** of the future and Palmetto Solar is the place to buy it. Van Guines Richmond, Virginia The process from beginning to the end of having our **system installed** was nothing but great! They answered all questions and were willing to update on everything that was going on during the process. It’s been a couple of months now since we’ve had the system installed and can tell a **huge difference in our energy bill** already. Zachery Umphrey Lillington, North Carolina I had a **solar panel system installed** by Palmetto one year ago and so far, everything has been great. I’m averaging about **78% production versus usage**, which is pretty much exactly as expected. Given the number of panels the city would allow me to have. **Customer service** has also been fantastic! Jeffrey Brown Peoria, Arizona ## Key Takeaways - New Mexico gets 6.4 peak sun hours daily — making it one of the best states in the country for solar energy production. - Go solar for as low as $77/month through Palmetto’s LightReach lease — no upfront cost, and Palmetto handles all maintenance. - New Mexico offers strong solar incentives including a refundable 10% state tax credit, a sales tax exemption, and a property tax exemption. ## New Mexico Electricity Prices Electricity in New Mexico has been getting more expensive. Here’s what that means for your monthly bill — and your options. New Mexico’s average electricity rate climbed from 13.5¢ per kWh in 2021 to 14.4¢ in 2024 — a 6.7% increase in just three years. Nationally, rates rose even faster, jumping from 13.7¢ to 16.5¢ over the same period. Solar panels can help offset those rising costs. By generating your own electricity at home, you rely less on the grid — which means utility rate increases have less impact on your monthly bill. Palmetto’s LightReach program lets New Mexico homeowners go solar with no upfront cost. You pay a low, fixed monthly rate — and Palmetto owns, monitors, and maintains the system, so you’re protected no matter what utility rates do next. ### Price of Energy: New Mexico vs National Average 0¢ 10¢ 20¢ 30¢ 2021 2022 2023 2024 - New Mexico: 14.4¢ - US Average: 16.0¢ ## New Mexico Solar Incentives New Mexico homeowners have access to several [solar incentives in New Mexico](/content/local/new-mexico/#incentives-table/index.html) — at the state, utility, and community level — that can meaningfully reduce the cost of going solar. These include: - A refundable 10% state tax credit - A sales tax exemption on solar equipment - A permanent property tax exemption - Net metering credits | Incentive | Type | Description | Source | | --- | --- | --- | --- | | New Mexico Solar Market Development Tax Credit (SMDTC) | Tax Credit | Offers a refundable 10% state income tax credit on solar installation costs, up to $6,000 per taxpayer per year. | [Learn More](https://www.emnrd.nm.gov/ecmd/tax-incentives/solar-market-development-tax-credit-smdtc/) | | Gross Receipts Tax (GRT) Exemption for Solar & Battery Storage | Sales Tax Exemption | Exempts solar energy systems and paired battery storage equipment from the state’s gross receipts tax, saving homeowners thousands at the point of purchase. | [Learn More](https://www.tax.newmexico.gov/) | | Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | Permanently exempts the added home value from a solar installation from property tax reassessment, so your property tax bill won’t increase after going solar. | [Learn More](https://www.tax.newmexico.gov/) | | Net Metering | Net Metering | Requires investor-owned utilities to offer net metering, crediting solar customers at retail rates for excess electricity sent to the grid. | [Learn More](https://www.prc.nm.gov/utilities/) | | PNM Solar Renewable Energy Credit (SREC) Purchase Program | SREC | Allows customers to earn and sell SREC to PNM at $0.0025 per kWh for eight years. | [Learn More](https://www.pnm.com/solar-interconnection-benefits) | | New Mexico Community Solar Program | Rebate | Subscribes to a share of a local solar farm and receive guaranteed savings on utility bills without any roof or upfront costs. | [Learn More](https://www.prc.nm.gov/utilities/community-solar/) | ## New Mexico Solar Irradiance Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. New Mexico’s 300+ sunny days and high elevation make it one of America’s best states for solar production. ### What Can the Average New Mexico Solar System Power? #### Summer Production (July) - **3.6 average New Mexico homes** (15 kWh/day per home) - or Run central AC for **18 hours** AND power all other appliances - or Fully charge **5.4 Tesla Model 3** electric vehicles #### Winter Production (December) - **2 average New Mexico homes** (15 kWh/day per home) - or Keep your home heating system running for **15 hours** - or Fully charge **3 Tesla Model 3** electric vehicles #### Annual Production - **Offset 10 tons** of carbon dioxide emissions - or Equal the environmental benefit of **planting 175 trees** - or Save approximately **$4,234** in electricity costs ## Solar Installations in New Mexico We’ve mapped thousands of real solar installations across New Mexico so you can see just how many of your neighbors have already made the switch. ## Go Solar with LightReach — No Upfront Cost In New Mexico, Palmetto offers a **Power Purchase Agreement (PPA)** through its [LightReach program](/content/products/lightreach/index.html) — available to customers of Public Service Company of New Mexico (PNM), El Paso Electric, and Xcel Energy. With a PPA, you pay a set rate per kilowatt-hour (kWh) for the solar energy your system produces. **Frequently Asked Questions** **Does New Mexico have net metering?** - Yes. New Mexico state policy requires all regulated investor-owned utilities to offer net metering. **Do solar panels increase your home value in New Mexico?** - **Yes — but only if you own the system outright.** Homes with solar panels sell for approximately **4.1% more** than homes without them. **How much does it cost to go solar in New Mexico?** - New Mexico homeowners can go solar for as low as **$77/month** through the LightReach program with no upfront cost. **How does leasing solar work and what’s the approximate cost in New Mexico?** - For a typical 6.15 kW system, the estimated monthly payment is approximately **$77/month**. **What solar incentives are available in New Mexico?** - New Mexico offers several state-level solar incentives for homeowners.