Solar & Net Metering Policy
Net metering is available in New Mexico, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Required for investor-owned utilities and rural electric cooperatives for systems up to 80 MW. New Mexico offers a state solar tax credit of 10% up to $6,000, which can be combined with the federal 30% Investment Tax Credit (ITC) for significant savings. Additional savings are available through a property tax exemption on the added home value and a sales tax exemption on solar equipment. New Mexico has an active SREC (Solar Renewable Energy Certificate) market, allowing solar owners to earn additional income by selling certificates for the electricity they generate.
Net Metering Notes
Required for investor-owned utilities and rural electric cooperatives for systems up to 80 MW.
Tax Credit Details
New Solar Market Development Tax Credit.
SREC Market Details
Utilities purchase RECs to meet RPS compliance, though residential direct markets are limited.
Does New Mexico have net metering?
Yes. New Mexico has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Required for investor-owned utilities and rural electric cooperatives for systems up to 80 MW.
What solar tax credits are available in New Mexico?
New Mexico offers a state solar tax credit of 10% up to $6,000. New Solar Market Development Tax Credit. This can be combined with the federal Investment Tax Credit (ITC), which provides a 30% credit on the cost of your solar system.
What is the federal solar tax credit and does it apply in New Mexico?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in New Mexico for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in New Mexico?
Yes. New Mexico offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in New Mexico?
Yes. New Mexico exempts solar energy equipment from state sales tax, which can save several percent on the upfront cost of your system.
Does New Mexico have an SREC market?
Yes. New Mexico has an active Solar Renewable Energy Certificate (SREC) market. Solar owners earn one SREC for every megawatt-hour (MWh) of electricity generated, which can be sold to utilities or brokers. Utilities purchase RECs to meet RPS compliance, though residential direct markets are limited.
Are there utility rebates for solar in New Mexico?
Statewide utility rebates are not currently available in New Mexico. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
New Mexico Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.