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Discover the Power of Solar Energy in New Mexico!

Welcome to New Mexico, a state renowned for its vibrant culture, stunning desert landscapes, and an abundance of sunny days. New Mexico stands as a leader in the solar energy sector, benefiting from one of the highest solar potentials in the United States. This exceptional solar resource offers a golden opportunity for homeowners and businesses to tap into the benefits of clean, renewable energy. With state and federal incentives designed to lower the barrier to entry and a community deeply invested in environmental conservation, New Mexico is at the forefront of a solar revolution. Learn how leveraging the sun?s abundant rays can power your home, reduce energy bills, and contribute to a sustainable future. Join us in harnessing solar energy and step into a brighter, more sustainable future in the Land of Enchantment.

Solar State Incentives

New Mexico State Solar Incentives

New Solar Market Development Tax Credit
New Mexico offers a 10% tax credit for the installation of certified solar systems in homes, businesses, and agricultural enterprises. The program caps at $12M annually and ends in 2032.
Community Solar Program
New Mexico's community solar program, S.B. 84, enables solar facilities to generate up to 5MW AC, with at least 10 subscribers. It opens to public in 2023.
2021 Sustainable Building Tax Credit (Personal)
New Mexico's H.B. 15 offers personal and corporate tax credits for sustainable residential and commercial buildings, including those that are broadband and electric vehicle-ready.
2021 Sustainable Building Tax Credit (Corporate)
New Mexico's H.B. 15 establishes tax credits for sustainable commercial and residential buildings. Credit amounts vary based on factors like square footage, certification level, and housing type.
City of Albuquerque - Solar Easements and Rights Laws
Albuquerque's Integrated Development Ordinance restricts subdivision approval for properties prohibiting solar collectors and outlines solar access permits.
Solar/Wind Construction Permitting Standards
New Mexico requires licensing for installing solar PV and wind systems under 10 kW. Structural analysis by a local engineer may be needed for system mounting.
Drinking Water State Revolving Loan Fund
The Drinking Water State Revolving Loan Fund offers financial aid to eligible public water systems for repair and compliance with SWDA. The program offers up to 75% cost forgiveness.
Property Tax Exemption for Residential Solar Systems
In New Mexico, residential solar energy systems won't increase property value for tax purposes, as they're not treated as physical improvements under H.B. 233.
Gross Receipts Tax Exemption for Sales of Wind and Solar Systems to Government Entities
New Mexico's S.B. 201 law stimulates renewable energy adoption, specifically solar energy, by offering tax exemptions to government entities purchasing solar systems.
Local Option - Renewable Energy Financing District/Solar Energy Improvement Special Assessments
In 2010, the FHFA directed Fannie Mae and Freddie Mac not to purchase mortgages of homes with a PACE lien. PACE financing allows property owners to borrow money for energy improvements.
Farmington Electric Utility System - Net Metering
As of Feb 1, 2017, Farmington Electric's net metering program is closed to new customers; existing users may continue to participate.
Interconnection Standards
The New Mexico Public Regulation Commission revised interconnection standards for generating facilities, encouraging use of small-scale renewable energy systems.
Alternative Energy Product Manufacturers Tax Credit
Manufacturers of alternative energy products may claim a tax credit, approved by the Taxation and Revenue Department, not exceeding 5% of qualified expenditures. Eligibility requires new hires.
Solar Energy Gross Receipts Tax Deduction
New Mexico businesses can deduct revenue from solar system sales and installation from gross receipts before calculating tax, under N.M. Stat. § 7-9-112.
Mandatory Utility Green Power Option
New Mexico's Investor-Owned Utilities required to offer voluntary renewable energy purchase programs, with varying tariffs and energy sources, for customer participation.
Renewable Portfolio Standard
New Mexico's Renewable Energy Act mandates utilities to derive 20% of total retail sales from renewable sources by 2020, rising to 50% by 2030, and 100% from zero-carbon resources by 2045.
Clean Energy Revenue Bond Program
New Mexico's Energy Efficiency and Renewable Energy Bonding Act authorizes up to $20M in bonds to finance energy improvements in state and school buildings.
New Mexico Solar Easements & Rights Laws
New Mexico's Solar Rights and Solar Recordation Acts protect property owners' access to sunlight, allowing for the creation of solar easements and enabling local ordinances around solar rights.
Net Metering
Net metering is open to all qualifying facilities (QFs) for renewable and combined heat power systems up to 80MW. Utilities must offer net metering and compensate customers for net excess generation.
System Benefits Charge
New Mexico replaces system benefits charge with Efficient Use of Energy Act, supporting renewable energy and low-income assistance.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.