New Mexico Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in New Mexico costs $40,590. After the 30% federal tax credit: $28,413. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
New Mexico State Incentives
Solar Market Development Tax Credit
Tax Credit10% of cost up to $6,000
New Mexico offers a state income tax credit of 10% of solar system cost.
Net Metering
Net MeteringFull retail rate
Net metering at full retail rate for PNM and El Paso Electric customers.
Tax Exemptions
property tax Exemption
Solar installations are exempt from property tax assessment increases.
sales tax Exemption
Solar equipment is exempt from state sales tax.
Highlights & Drawbacks
Highlights
- ✓Federal 30% ITC available
Drawbacks
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.