What’s the Cost of Solar in New Mexico?

Cost of Grid Power

New Mexico's electricity prices average $0.13/kWh, slightly above the national average of $0.14/kWh.

New Mexico has quadrupled its oil production since 2009, become the third-largest oil-producing state in the United States by 2018. On the bright side New Mexico has reduced the role of coal in its net electricity generation, from 90% in 1990 to 40% in 2018. This may be at least partially related to California's 2014 decision to stop purchasing coal-fired power from other states. Natural gas and renewables account for the bulk of the remaining net generation. All new and planned power generation in the state will rely on renewable energy or natural gas. New Mexico ranks in the bottom third of states for per-capita electricity use.

Cost of a Solar Install

The average cost of a 6kW (equivalent to saving over 100 trees a year) solar power system starts around $18,000 in New Mexico. That system would pay for itself through energy savings with 5.6-6.9 years. System life can span well over 25 years, and savings will improve with inflation.

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What Incentives are Available in New Mexico?

Data from DSIRE. For more info visit: https://www.dsireusa.org/

Name	Implementing Sector	Program Type	Administrator	DSIRE ID
Fuel Mix and Emissions Disclosure	State	Generation Disclosure		222
Net Metering	State	Net Metering		284
Mandatory Alternative Energy Cost Estimates	State	Line Extension Analysis		323
Biomass Equipment & Materials Compensating Tax Deduction	State	Sales Tax Incentive	New Mexico Taxation & Revenue Department	359
PV Leasing Program	Utility	Leasing Program	Southwestern Public Service Company	593
Interconnection Standards	State	Interconnection		798
Efficient Use of Energy Act	State	Public Benefits Fund		1419
Construction Standards to Accomodate Solar Collectors	State	Building Energy Code		2471
Solar Collector Standards	State	Equipment Certification		2472
Sustainable Building Tax Credit (Personal)	State	Personal Tax Credit	New Mexico Taxation & Revenue Department	2519
Sustainable Building Tax Credit (Corporate)	State	Corporate Tax Credit	New Mexico Taxation & Revenue Department	2520
Interconnection Standards	State	Interconnection		3033
Interconnection Standards	State	Interconnection		3038
Advanced Energy Gross Receipts Tax Deduction	State	Sales Tax Incentive	Taxation and Revenue Department	4029
Property Tax Exemption for Residential Solar Systems	State	Property Tax Incentive	New Mexico Energy, Minerals and Natural Resources Department	4043
Solar/Wind Construction Permitting Standards	State	Solar/Wind Permitting Standards		5548
City of Albuquerque - Solar Easements and Rights Laws	Local	Solar/Wind Access Policy		5617
Albuquerque City - Green Path Program	Local	Building Energy Code		5935
New Mexico Finance Authority - Energy Efficiency and Renewable Bonding Act	State	Other	New Mexico Finance Authority	14639
Socorro Electric Cooperative - Energy Audits	Utility	Energy Analysis	Socorro Electric Cooperative	16126
El Paso Electric Company - Energy Library	Utility	Training and Information	El Paso Electric Company	16241
Northern Rio Arriba Electric Cooperative - Energy Audit	Utility	Energy Analysis	Northern Rio Arriba Electric Cooperative	16247
El Paso Electric Company - Tools, Tips, and Calculators	Utility	Energy Analysis	El Paso Electric Company	19193
Southwest Energy Efficiency Project- Utility Energy Efficiency Programs- New Mexico	Other	Other	Southwest Energy Efficiency Project	19197
Jemez Mountains Electric Coop - Net Metering	Other	Other	Jemez Mountains Electric Coop	19359
New Mexico Gas Company - Energy Efficiency Rebate Programs	Other	Energy Analysis	New Mexico Gas Company	19371
Otero County Electric Coop - Net Metering	Other	Other	Otero County Electric Coop	19373
Rio Grande Electric Coop - Interconnection	Other	Other	Rio Grande Electric Coop	19790
Xcel Energy - Windsource for Business	Utility	Other	Xcel Energy	19818
PNM Profiler	Utility	Energy Analysis	PNM	20984
Xcel Energy - Energy Design Assistance	Utility	Energy Analysis	Xcel Energy	21654
Xcel Energy - Online Energy Assessment	Utility	Energy Analysis	Xcel Energy	21655
Xcel Energy - Refrigeration Recycling	Utility	Energy Analysis	Xcel Energy	21673
Xcel Energy - Small Business Lighting	Utility	Energy Analysis		21678
Xcel Energy - Business Energy Advisor	Utility	Energy Analysis	Xcel Energy	21679
Xcel Energy - Business Solutions	Utility	Energy Analysis		21701
Xcel Energy - Energy At Risk Financial Analysis Tool	Utility	Energy Analysis	Xcel Energy	21711
Xcel Energy - Energy Management Systems	Utility	Energy Analysis	Xcel Energy	21718
Southwest Energy Efficiency Project - Energy Efficiency Opportunities	Other	Training and Information	Southwest Energy Efficiency Project	21730
U.S. Department of Energy - Industrial Assessment Center (IAC): Colorado State University	Federal	Energy Analysis	U.S. Department of Energy	21747
Otero County Electric Coop - Energy Efficiency Program	Utility	Energy Analysis	Otero County Electric Coop	21881
Southwest Energy Efficiency Project - New Mexico Energy Efficiency Guide	Other	Training and Information	Southwest Energy Efficiency Project (SWEEP)	21917
PNM - Peak Saver	Utility	Other	PNM	21923
Xcel Energy - Energy Efficiency Financing	Utility	Other		21943

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Resources

• New Mexico Energy, Minerals and Natural Resources Department (EMNRD)
• New Mexico Public Regulation Commission (NMPRC)
• Environment New Mexico
• U.S. Energy Information Administration (EIA): New Mexico