New Mexico’s Solar Incentives: Your 2023 Comprehensive Guide
Opting for solar power in New Mexico not only aligns with a sustainable future but also comes with an array of financial perks. While the state already boasts lower solar installation costs compared to many others, it further fosters the transition to green energy through numerous incentives designed to lighten the financial burden on homeowners looking to install a new solar panel system.
After dedicating hundreds of hours to meticulously researching leading solar companies and the array of credits and rebates available in each state, we have crafted a comprehensive guide to solar incentives in New Mexico. Stay tuned to unravel avenues through which you can significantly trim down the expenses of your solar project.
Property Tax Exemption
Did you know that the addition of solar panels can potentially augment your home’s value by up to $15,000? While this surge in value generally translates to increased property taxes, New Mexico steps in with a refreshing exception. The state offers a property tax exemption specifically tailored for homes equipped with solar panels, ensuring that your leap toward sustainability does not come with a tax penalty.
Sales Tax Exemption
Another financial cushion comes in the form of a sales tax exemption. In New Mexico, solar equipment purchases are spared from the standard 5% sales tax, facilitating a considerable saving of several hundred dollars or potentially more on your solar power system setup.
State Solar Tax Credit
As you navigate the financial landscape of solar installation, the New Solar Market Development Tax Credit (NSMDTC) stands as a flagship incentive. This state-specific tax credit paves the way for substantial savings whether you are installing a residential, commercial, or agricultural solar system. Homeowners have the liberty to claim a credit that reduces their state tax payment in the installation year by either $6,000 or 10% of the total solar expense, selecting the lesser amount.
To put this into perspective, considering the average expense for a 6-kilowatt (kW) solar panel system in New Mexico stands at $19,680*, homeowners stand to save over $1,900. It is an incentive that not only fosters clean energy adoption but also renders it financially rewarding.
Harness the sun’s power in New Mexico and step into a future of clean, green, and financially savvy energy solutions. Explore the resources above to dive deep into each incentive and understand how you can reap the maximum benefits as you embark on your solar project journey.