Most likely you own your home. You realized that the best investment you can make is in a home. You decided that you don't want to keep making mortgage payments for your landlord and would rather put that equity into your future. So why don't you own your electricity?
Assuming you finance your solar installation, your payments for solar will most likely be about the same as what you would have paid to your utility company. The difference? You are paying for something that you will own and reap the benefits from for years to come. On average solar loans are 15 years and nearly match your current electric bill. That means you didn't change your spending at all and at the end of your loan you own the panels free and clear and still have an additional 10 year warranty! Electric rates go up on average 2% every year in Clovis. Loans are locked in. You can safely plan for the future without worrying about inflation!
The New Mexico Solar Market Development Tax Credit or "New Mexico Solar Tax Credit" was passed by the 2020 New Mexico Legislature and signed by New Mexico Governor Michelle Lujan Grisham. This bill provides a 10% tax credit with a value up to $6,000 for a solar energy systems.
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.
In addition to the property tax incentive, you save up-front on solar in New Mexico because the state exempts solar equipment from its gross receipts tax. That is a savings of 8.19% of the project cost!
All of the New Mexico solar incentives are great for reducing your solar costs, but you can’t forget about the federal Investment Tax Credit (ITC). With the ITC, you can claim 26 percent of your solar equipment and installation costs on your federal taxes, which means even higher solar savings.
When you put solar panels on your roof, you want to make sure you get credit for the power your system generates. Luckily, 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.