Complete Guide to Solar Energy in New Mexico
Your complete resource for solar energy in New Mexico. Everything you need to know about state tax credits, net metering, Solar Rights Act protections, and solar installation across the Land of Enchantment.
Why New Mexico is Perfect for Solar Energy
Exceptional Solar Resources
New Mexico ranks among the top states for solar potential with 6.77 peak sun hours daily and 280+ sunny days per year, providing ideal conditions for maximum solar energy generation.
Strong State Tax Credit
The Solar Market Development Tax Credit provides 10% of your solar system costs back, up to $6,000, stacking with federal incentives for total savings of 40% on your installation.
Complete Tax Exemptions
100% sales tax exemption (saving 5.125%) and full property tax exemption ensure solar adds no tax burden while increasing your home’s value significantly.
Solar Rights Act Protection
New Mexico’s Solar Rights Act establishes solar access as a property right, prohibiting HOAs and local ordinances from blocking solar installations with rare historic district exceptions.
Quick Solar Facts
Explore Solar Topics
Laws & Regulations
Federal ITC, Solar Market Development Tax Credit, Solar Rights Act, net metering policies, property and sales tax exemptions, and community solar programs.
Residential Solar
Complete guide for New Mexico homeowners, optimal system sizing for high solar radiation, roof requirements, and maximizing production in desert climate.
Costs & Savings
2025 pricing at $2.79-$2.84 per watt, combined 40% tax credit benefits, long-term savings analysis, and ROI calculations for New Mexico conditions.
Financing Options
Solar loans, cash purchase advantages, PACE financing availability, home equity options, and third-party ownership arrangements for New Mexico residents.
Installation Guide
Finding licensed installers, SMDTC application process, PNM interconnection procedures, local permitting requirements, and timeline expectations.
Solar 101
Solar technology fundamentals, equipment selection for high-radiation environments, battery storage for grid resilience, and maintenance in desert conditions.
Community Solar
Shared solar programs, PNM community solar offerings, options for renters and those with unsuitable roofs, and subscription benefits.
Solar Calculator
Estimate your solar savings and system requirements.
Quick Solar Savings Calculator
Important 2026 Updates
SMDTC Application Deadline (December 31, 2025)
If you installed a solar system between 2020-2024, you must apply for the New Solar Market Development Tax Credit by December 31, 2025. This 10% state tax credit (up to $6,000) is determined by the year your system receives building code clearance after inspection.
Apply for SMDTC →PNM Rate Increases (July 2025 & April 2026)
New Mexico’s largest electricity provider is implementing rate adjustments in two phases: July 2025 and April 2026. These increases make solar an increasingly attractive hedge against rising utility costs and faster payback periods for new installations.
PNM Rate Information →New Mexico Solar Laws & Regulations
Understanding the legal framework that supports solar energy in New Mexico
Solar Rights Act
New Mexico’s Solar Rights Act (NMSA 47-3-4) establishes solar energy use as a property right. The law prohibits HOAs and municipalities from passing restrictions that forbid solar installations, except in designated historic districts. HOAs can impose reasonable regulations but cannot increase costs by more than $1,000 or reduce efficiency by more than 10%.
Learn More →Property & Sales Tax Exemptions
Residential solar systems are 100% exempt from property tax assessments in New Mexico. Additionally, the state provides complete sales tax exemption (5.125%) on solar equipment and installation for systems providing space heat, hot water, or electricity to your home.
Learn More →Solar Market Development Tax Credit
The SMDTC provides a state income tax credit equal to 10% of solar equipment, materials, and labor costs, capped at $6,000. Eligibility is determined by the year your building code authority clears your system. Systems installed 2020-2024 must apply by December 31, 2025.
Learn More →