New Mexico Solar Laws

New Mexico’s abundant sunshine and wide-open landscapes make it an ideal location for solar energy systems. However, before installing solar panels, it is essential to understand the legal framework that governs solar development in the state. Federal incentives, state-level mandates, and local permitting requirements all influence how solar energy is adopted. New Mexico solar laws are designed to encourage clean energy while ensuring installations meet safety and zoning standards. Whether you are a homeowner in Albuquerque or a rancher in Las Cruces, knowing the solar panel laws and solar energy policies in New Mexico is key to a successful and compliant installation.

Federal Regulations and Policies Affecting Solar Installation in New Mexico

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit remains one of the most significant incentives for solar adoption in New Mexico. This policy allows homeowners and businesses to deduct 30% of the total cost of solar panel installation from their federal income taxes. Given New Mexico’s high solar potential, this credit helps offset installation costs and encourages widespread adoption. The ITC applies to both residential and commercial systems and can be carried forward for several years if the full credit isn’t used immediately.

Federal Net Metering Support

Although net metering is regulated at the state level, federal energy policy supports fair compensation for solar producers. In New Mexico, net metering allows solar customers to receive credit for excess electricity sent back to the grid. This policy aligns with federal guidelines that promote grid integration and consumer protections. Net metering in New Mexico is available for systems up to 120% of a customer’s annual electricity usage.

Renewable Energy Goals and Federal Support

New Mexico’s renewable energy goals are bolstered by federal initiatives. The state aims to achieve 100% carbon-free electricity by 2045, a target supported by federal grants and technical assistance programs. These efforts help utilities and local governments develop solar infrastructure, especially in rural and tribal communities.

New Mexico Solar Regulations and Policies

Renewable Energy Act

New Mexico’s Renewable Energy Act mandates that investor-owned utilities source a percentage of their electricity from renewable sources. This includes solar energy, which plays a central role in meeting the state’s clean energy targets. The act supports the development of utility-scale solar projects and incentivizes distributed generation.

Solar Tax Credit

New Mexico offers a solar tax credit for residential solar systems. Under this policy, a 10% tax credit with a savings value of up to $6,000 is given to homeowners with solar installations. This incentive encourages homeowners to invest in solar without worrying about increased taxes.

New Mexico HOA Solar Laws

New Mexico law prohibits homeowner associations from banning solar installations outright. While HOAs may impose reasonable restrictions related to aesthetics or placement, they cannot prevent residents from installing solar panels. These New Mexico HOA solar laws protect individual rights and promote broader adoption of clean energy.

Community Solar Policy

New Mexico supports community solar projects through legislation passed in 2021. The Community Solar Act (Senate Bill 084) allows multiple households to share the benefits of a single solar installation. This policy expands access to solar energy for renters, low-income families, and those without suitable rooftops.

Does New Mexico Have Solar Access Laws?

Yes, New Mexico has solar access laws that protect a property owner’s right to sunlight for energy generation. Solar access laws ensure that neighboring structures or vegetation do not obstruct solar panels. These laws differ from solar easement agreements, which are voluntary contracts between property owners to maintain sunlight access.

In New Mexico, solar access is protected through zoning ordinances and state statutes. Municipalities may have additional rules that support solar installations by limiting building heights and setbacks. While solar easement agreements are not mandatory, they are encouraged in densely populated areas to prevent future disputes.

Do You Need Permits for Solar Installation in New Mexico?

Yes, homeowners and businesses must obtain permits before installing solar systems in New Mexico. Solar panel installation regulations require electrical and building permits to ensure safety and code compliance. Permits are typically issued by local municipalities or county governments, depending on the location of the property.

In addition to standard permits, some jurisdictions may require zoning approval or historic district clearance if the property is in a protected area. Installers must also comply with solar panel roof regulations, which govern structural integrity and fire safety.

How to Obtain Permits for Solar Installation in New Mexico

Obtaining the proper permits is a critical step before beginning any solar project in New Mexico. The process ensures compliance with New Mexico solar laws and protects both property owners and the public. Several agencies are involved, depending on the location and scope of the installation.

Step-by-Step Permit Process

  • System Design and Engineering – Work with a licensed solar contractor to design a system that meets local codes and utility requirements. Include structural calculations and electrical schematics
  • Permit Application Submission – Submit building and electrical permit applications to your city or county’s permitting office. In Albuquerque, this is the Planning Department. Other counties have similar agencies
  • Zoning and Historic Review (if applicable) – If your property is in a historic district or subject to special zoning, additional review may be required. Santa Fe County, for example, has specific rules for adobe structures and scenic corridors
  • HOA Notification – Notify your homeowner’s association if applicable. While New Mexico HOA solar laws prevent outright bans, some HOAs require notification or approval for aesthetic reasons
  • Utility Interconnection Application – Apply for interconnection with your utility provider, such as Public Service Company of New Mexico (PNM) or El Paso Electric. This step ensures your system can safely export energy to the grid under net metering rules
  • Inspections and Final Approval – Schedule inspections with county officials to verify compliance. Once approved, you’ll receive a final permit and can activate your system
  • Register for Incentive Programs – After installation, register for programs like SREC markets or community solar participation to begin receiving compensation for excess energy