An abundance of sunshine combined with great solar incentives make New Mexico one of the best states in the nation for homeowners to go solar. Not sure what solar power programs and rebates are available to you as a homeowner? Number One Plumbing, AC, Solar & Electric has some answers to help you understand your options.
New Mexico Energy Storage System Income Tax Credit
Soon to be New Mexico’s newest renewable energy tax credit, House Bill 262 would allow homeowners to apply for an income tax credit of 40% and up to $5,000 for the installation of energy storage/battery backup systems. This is different from the tax credit for installing solar panels. This new tax credit may be applied to grid-tied and off-grid energy storage systems. If you already own solar panels, now would be a good time to add a battery backup system!
New Mexico State Solar Tax Credit
Property owners can take advantage of New Mexico’s best solar incentive, the state’s solar tax credit. This incentive can reduce your state tax payments by up to 10% off your total solar energy expenses up to $6,000. The tax credit applies to residential, commercial, and agricultural installations.
New Mexico Net Metering Program
New Mexico has a net metering policy that credits you for the extra electricity your system produces and allows you to use those credits when your system doesn’t generate enough power. Think about it like an energy savings account, all the unused energy your system produces flows back to the grid and you receive credits and for any unused energy you will be paid out at the agreed contract rate.
To learn more, visit the PNM website at pnm.com/solar
Sustainable Building Tax Credit
The State of New Mexico will credit you on your taxes if you install solar as part of your sustainable building efforts on your home. Your home will need to be certified sustainable by the U.S. Green Building Council to qualify. The value of the credit is determined by your certification level. You could earn as much as $6.50 per square foot for having a sustainable solar home!
New Mexico Property Tax Exemption for Solar
Even though solar increases the value of your home, that extra value is exempt from property taxes in New Mexico. That’s great news for homeowners who go solar – you get the financial benefits of generating your own power, without having to worry about a higher tax bill.
Federal Solar Tax Credit
The federal government also have solar incentives! The Investment Tax Credit (ITC) can reduce the cost of your PV solar energy system by 26%. The ITC applies only to property owners who buy their PV system outright, either with a cash purchase or solar loan. The ITC will be dropping in 2023 and again in 2024 as shown in this graphic provided by the Solar Energy Industries Association (SEIA)
Take Advantage of all of these great incentives today!
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