Solar by State / New Mexico
Data last verified: August 2026Is Solar Worth It in New Mexico in 2026?
The honest answer depends on four numbers that are unique to New Mexico: your electricity rate, your solar production, your net metering policy, and your state incentives. Here are the real figures, with sources and dates.
New Mexico Solar Snapshot (2026)
| Residential electricity rate | 14.8¢/kWh (EIA, 2026 YTD May) |
| Solar production | ~1650 kWh per kW installed per year (NREL PVWatts v8) |
| Net metering | Full retail 1:1 |
| State tax credit | None in 2026 |
| Rebates / performance | None |
| SREC market | No active SREC market |
| Property tax exemption | Yes |
| Sales tax exemption | Yes |
Estimate Your Own Payback in New Mexico
The table above is a 6 kW benchmark. Your home is different — use the Solar ROI Calculator with New Mexico pre-loaded to get your exact payback, or the 30-second worth-it quiz for a go/no-go verdict.
New Mexico FAQ
Does New Mexico have a solar tax credit in 2026?
New Mexico does not offer a state income tax credit for residential solar in 2026. The federal residential credit (Section 25D) expired Dec 31, 2025 and does not apply to 2026 installations.
What is net metering like in New Mexico?
New Mexico uses full retail net metering. This means every exported kWh is credited at your retail rate — the most favorable setup for solar.
Is solar worth it in New Mexico after the federal credit ended?
At a typical 2.70/W installed cost and 14.8¢/kWh electricity, a 6 kW system in New Mexico has an estimated payback of about 10.5 years (rank #17 of 51 states). That is in the middle of the pack — workable for long-term owners.
Compare New Mexico with Another State
See how New Mexico stacks up against Colorado — or use the state comparison tool for a side-by-side of any two or three states.
Popular guides
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What changed when the federal 25D credit expired.
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Read →Net Metering vs Net Billing
Why your export credit matters as much as your rate.
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