Solar by state › New Mexico

Home solar in New Mexico

New Mexico still pays a 10% state tax credit on home solar (up to $6,000 a year, for systems installed through 2031), and net metering is still in place.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

16.5¢average home price per kWh (EIA, August 2026)

Strong case for solarA state tax credit that can be transferred or refunded, no gross receipts tax on solar sales and installation, net metering, and a growing community solar program. Power prices are moderate (about 16.5 cents/kWh).

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Net metering Net metering available

PRC rule 17.9.570 NMAC (current version effective 5-24-2022) requires net metering for systems up to 10 kW. When you export more than you use in a month, the utility either pays you for it at its energy (avoided-cost) rate or gives you kWh credits that roll forward month to month; the utility picks the method. Unused credits are paid out at the energy rate if you leave. Source

2022-05-24: current net metering rule takes effect

Solar credits (SRECs) No market

New Mexico has no SREC market for homes. Source

Rebates and incentives

New Solar Market Development Tax Credit

10% of cost, up to $6,000 per taxpayer per year; transferable, and refundable from 2022

NM taxpayers who install solar PV or solar thermal from 2025 through 2031; apply to EMNRD by Dec 31 of the year after install; $30M statewide yearly cap, first come first served

open tax credit Source

Taxes

Property tax:
Sales tax: Exempt: sales and installation of solar systems that serve the property are deductible from gross receipts tax (NMSA 7-9-112); buyer gives the seller a written statement. Source

Solar laws

Solar Rights Act (NMSA 47-3) and covenant law (NMSA 3-18-32) (2007). Solar access is a property right, and any covenant that effectively bans a solar collector is void (2007 HB 611). Source
Community Solar Act (SB 84, 2021) and 2026 Phase 2 (2026). Created community solar for utility customers; PRC raised the cap to 300 MW in 2024 and approved Phase 2 rules in July 2026. Source
SB 55 (2026), proposed (2026). Would raise the solar tax credit to 30% and $15,000 a year; no sign it passed. Source

Community solar

Yes: New Mexico's community solar program is live (more than a third of about 47 projects running by July 2026), with Phase 2 approved in 2026.

Timeline

2020-03-01 New Solar Market Development Tax Credit begins
2021 Community Solar Act (SB 84) passes
2022-05-24 Current net metering rule takes effect
2024-10 PRC raises community solar cap to 300 MW
2025-12-31 Federal 30% homeowner tax credit (25D) ends
2026-07 PRC approves community solar Phase 2
2027-12-31 Deadline to apply for the state credit for 2026 installs
2031-12-31 Last install year for the state solar tax credit

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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