With a high altitude and abundant sunshine, New Mexico’s geography and climate make it ideal for those looking to harvest solar energy. New Mexico ranks among the top 10 states for grid-connected solar energy per capita, and the installation of solar PV systems continues to increase thanks to the state’s incentives and regulatory policies. Residential solar in New Mexico continues to grow as a viable power option.

New Mexico’s Solar
Report Card


To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.

Incentives & Rebates, 40%

Electricity Rate, 15%

Renewable Energy Policy, 30%

Interconnection Ease, 5%

Photovoltaic Potential, 10%

Electricity Rates in New Mexico

The average cost of electricity in New Mexico is on par with the national average at nearly $0.13 per kWh. However, a climate and geography well suited for solar, energy policy reform and declining costs of solar power systems make solar energy an increasingly attractive investment in the Land of Enchantment. New Mexico ranks 18th in the nation with 836 MWs of installed solar capacity, enough to power more than 214,000 homes, according to the Solar Energy Industry Association. This is enough to power nearly five percent of the state’s electricity.

Cost of Residential Electricity

Data from U.S. Energy Information Administration
*as of Q3 2015

New Mexico Library
of Solar Resources

Solar Panel Policies in New Mexico

Despite debates surrounding the institution of energy market reforms that would stimulate growth in New Mexico’s residential solar industry, $1.8 billion has been invested in solar energy installations in the state. Supportive legislation, policies and resulting pro-solar programs form the foundation for further growth. About 36 federal and state programs specifically for solar PV are currently in effect in New Mexico.


Property Assessed Clean Energy (PACE) Bond Financing

New Mexico law allows owners of property in the state to borrow funds for energy improvements, which include installing solar PV energy technologies. The borrowed amount is usually paid back through a special property assessment over several years.

None for residential specifically

Solar Energy Gross Receipts Tax Deduction

In New Mexico, businesses that generate revenue by selling or installing solar PV energy systems can deduct this revenue from their gross receipts prior to the calculation of the gross receipts tax, which is used in lieu of a sales tax in New Mexico.


Interconnection Standards

All utilities that are subject to the jurisdiction of the Public Regulation Commission (PRC) have to provide net metering, including to those who produce energy with solar PV systems. Solar energy systems that are interconnected, or on-grid, can receive incentives in exchange for their renewable energy certificates.

Solar Easements & Rights Laws

According to New Mexico law, easements can be created by property owners to protect appropriate access to the sun’s light. This right keeps property owners’ neighbors from planting trees or building buildings that would prevent them from being able to access the sun.

Net Metering

Users of solar power systems can take advantage of net metering in New Mexico. Net excess generated energy will be credited to a customer’s next bill at the avoided-cost rate; alternatively, excess kWh produced is credited to the customer’s account and keeps rolling over indefinitely. The maximum capacity for a system is 80 MW.

Solar/Wind Construction Permitting Standards (see “permits”)

Solar energy system contractors and installers must be licensed through the construction industries division of the New Mexico Regulation and Licensing Department. In addition, structural analyses have to be performed by structural engineers who are licensed in New Mexico.

None for commercial specifically


Sustainable Building Tax Credit

New Mexico allows both personal and corporate tax credits for any residential and commercial building with a solar PV energy system. The credit amount varies according to the building’s square footage along with its LEED certification level, up to $9 per square foot for residences and up to $6.25 for commercial buildings.

Advanced Energy Tax Credit

New Mexico taxpayers who own part or all of a solar PV electricity-generating facility may qualify for tax credits equal to 6 percent of the facility’s cost. The credit can be applied against either personal or corporate income taxes owed.

Renewable Energy Production Tax Credit

A tax credit is available against corporate or personal income tax for people or entities who use solar PV technology to produce energy. The energy generator has to have at least a 1 MW capacity and be installed prior to January 2018. The incentive yields an average of $0.027/kWh each year.

Solar Market Development Tax Credit

New Mexico offers a 10 percent tax credit on personal income for individuals and sole proprietors who buy and install solar PV energy systems that are certified. The tax credit caps at $9,000.

Alternative Energy Product Manufacturers Tax Credit

A tax credit is available to those who manufacture solar PV energy systems or their parts. The maximum incentive is 5 percent of the taxpayer’s qualified expenses.


None for residential/commercial specifically

Property Tax Exemption for Residential Solar Systems

Typically when any improvements are made on a house, property taxes on that house increase. This incentive exempts residential solar energy systems from property tax assessments in most cases, which means adding a solar energy system won’t result in higher taxes.

None for commercial specifically

N.M. Solar Companies, Contractors & Installers

More than 98 solar companies were doing business in New Mexico in 2014, and that number continues to grow. The following list can help you start or refine your search for the right solar energy system company.

Consolidated Solar Technologies

This full-service solar energy sales/installation company specializes in custom-building residential and commercial solutions according to customers’ budgets and energy needs.

Where it operatesAlbuquerque, Las Cruces and Santa Fe

Year of opening2004

Sol Luna Solar

Sol Luna’s NABCEP-certified team provides a complete range of solar energy products and services, including education and financing, as well as project design, engineering, construction and life-cycle operations and maintenance.

Where it operatesDixon

Year of openingEstablished: Over 40 years in business

Positive Energy Solar

Positive Energy Solar is an employee-owned company that designs, engineers, installs, maintains and helps finance solar energy projects for residences, businesses, public and government facilities.

Where it operatesAlbuquerque, Los Alamos, Las Cruces and Santa Fe

Year of opening1997

Sunspot Solar Energy

Sunspot Solar offers a qualified, licensed, experienced team of local energy professionals that designs, engineers, installs, maintains and helps finance residential and commercial projects.

Where it operatesLas Cruces

Year of openingUnknown

Osceola Energy

Osceola Energy is a high-quality, full-service electrical contractor that provides affordable turnkey solar PV and wind power systems for residential, commercial and industrial customers.

Where it operatesAlbuquerque

Year of opening2009

PPC Solar

PPC is an experienced, full-service provider of solar PV systems for homes, businesses and utilities. The company ranked in the Top 400 Solar Contractors by Solar Power World in 2014.

Where it operatesTaos

Year of opening1979

Valverde Energy

This licensed New Mexico electrical, mechanical and general contractor provides a full range of solar energy products and services, including project design, installation, operations, maintenance and financial assistance.

Where it operatesTaos

Year of openingEstablished: Over 30 years

New Mexico Solar Resources

There are many sources of information about solar energy in New Mexico. The list below can help you with your own research.

New Mexico Energy Conservation and Management Division

The ECMD is dedicated to promoting sustainable use of the state’s energy resources to help promote a healthy, vital economy and society. Their site provides a list of state solar tax incentives.

New Mexico Public Regulation Commission

This state commission regulates utilities, telecoms and motor carrier industries with the mandate to assure safety, equal access, sustainability and affordability.

New Mexico Legislature

The website for the 70-member House of Representatives and 42-member Senate representing all New Mexicans provides public access to online database of proposed and existing legislation.

New Mexico Solar Energy Association

One of the nation’s first solar and sustainable energy organizations, the New Mexico Solar Energy Association provides education, advocacy and public outreach revolving around promoting growth of solar energy in New Mexico and nationwide.

National Solar Observatory

National Solar Observatory is dedicated to advancing knowledge of the sun, provides observational opportunities to researchers worldwide and works with universities, industries and other government labs to improve solar instrumentation.


This site compiles consumer reviews of solar companies, panels, inverters and equipment from across the U.S. and includes summaries of state solar power installation requirements.


Maintained by the North Carolina Clean Energy Center, DSIRE is the DOE’s online national database of federal and state solar policies and programs. It is an indispensable source of information regarding solar policies, programs and incentives nationwide.

National Renewable Energy Laboratory

The latest news and developments to do with solar and renewable energy from the DOE’s flagship national center for clean energy R&D, particularly for those interested in the latest technological advances, can be found on this site.

U.S. Energy Information Administration (EIA)

The DOE’s official source of national energy statistics is an essential reference for anyone who takes an interest in energy in the U.S.

Solar Energy Industries Association (SEIA)

SEIA provides a comprehensive range of information and data regarding the latest developments affecting the U.S. solar industry and markets. Fact sheets highlight and summarize recent developments state by state.