New Mexico State Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

The Land of Enchantment is doing great things to keep captivating residents and visitors alike with its mountains, deserts, lakes, and forests. The New Mexican legislature has been hard at work enacting solar and renewable energy programs to protect the natural beauty all around the state. This legislation will help preserve Pueblo and Aztec ruins, as well as many other great outdoor wonders. It goes without saying that the latest legislation will also help keep Santa Fe, Taos, and Truth or Consequences looking their best. Check out what the legislature has been doing recently to promote clean energy!

STATE LEGISLATION

In April 2004, Governor Bill Richardson signed executive order EO-04-019, which declared New Mexico “The Clean Energy State.” What does this mean? The first two objectives of the task force that he created were to work on concentrated solar power and residential and business solar applications. Since that time, the state has focused on developing renewable energy in general, and more importantly on the state’s abundant solar energy.

Also in 2004, the state legislature enacted the Schools with Sol program. Since that time, it has built solar electricity and hot water systems in 28 schools around New Mexico. This is a great program that not only reduces operating costs for these schools, but also works to teach students and teachers about the benefits of solar energy. In 2005, the Schools with Sol program was incorporated into the Clean Energy Grant Program. This program provides grants to help install new clean energy systems, including solar, around the state.

The Solar Market Development Income Tax Credit was passed in June 2006, offering a great tax credit for the installation of a solar system in a home or business. The credit is a 30% credit, with a cap at $9000.

In March 2007, the New Mexico legislature passed an amendment to the Solar Rights Act. This is a really cool law that prohibits Home Owners Associations and Cities from passing codes that prohibit the installation of solar panels. Even better, it is retroactive to 1978 when the original act was passed, voiding any such laws passed since that time. It makes the right to use solar energy a property right under New Mexico law.

New Mexico also doubled its efforts under the Renewable Portfolio Standard (RPS) in 2007, requiring 20% of energy produced to come from renewable sources, including the sun, by the year 2020. Moreover, 20% of that renewable energy must be solar energy.

In July 2007, the legislature also passed Senate Bill 994, which offers a 6% tax credit to companies building solar thermal electric plants. The credit is capped at $60 million, so it should generate some serious efforts at solar energy production. Giving the solar industry a further boost is Senate Bill 463, which was passed earlier in 2007, giving a 5% tax credit to companies that produce renewable energy systems and components.

NET-METERING

As of January 2007, New Mexico now allows net-metering on facilities that generate up to 80MW. Under this program, the power company will pay you for the energy generated from your solar panels. Moreover, if you generate up to $50 more than you owe on your electric bill, the utility will credit your account. Beyond $50, the utility will write you a check.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

The state of New Mexico has been quite busy developing and updating incentive and rebate programs for both businesses and residential customers. One huge incentive is the PNM Customer Solar PV Program. Under this program, PNM, one of the largest utilities in New Mexico, will pay $0.13/kWh for excess energy generated by residential solar systems. When you consider that the average rate PNM customers pay out is only $0.0935/kWh, this is phenomenal!

Here’s a listing of other statewide and local programs in New Mexico:

Clean Energy Grant Program

Corporate Tax Credit

* Renewable Energy Production Tax Credit (Corporate)

* Solar Thermal Electric Tax Credit

* Sustainable Building Tax Credit (Corporate)

Industry Recruitment/Support

* Alternative Energy Product Manufacturers Tax Credit

Personal Tax Credit

* Renewable Energy Production Tax Credit (Personal)

* Solar Market Development Tax Credit

* Sustainable Building Tax Credit (Personal)

Production Incentive

* PNM – Customer Solar PV Program

Sales Tax Exemption

* Biomass Equipment & Materials Deduction

* Solar Energy Gross Receipts Tax Deduction

State Bond Program

* Energy Efficiency & Renewable Energy Bond Program

Utility Rebate Program

* Central New Mexico Electric Cooperative – Residential Energy Efficiency Rebate Program

* Kit Carson Electric Cooperative, Inc – ETS Systems Affordable Heating & Cooling Option

* PNM – Residential Energy Efficiency Rebate Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

A sample 3kW solar system in Albequerque, would cost about $45,000. However, with some serious rebates and incentives, including $10140 estimated payments for excess power sold back to the utility, and an $8458 state tax deduction, the cost is only about $26,770. Also worth noting is that with a state solar rating of Great, this system should pay for itself in between 8 and 15 years. It’s also a great investment for other reasons too since a solar electrical system can raise property values by as much as $12,000 or more. Check out some more of the details below.

CONSENSUS

New Mexico is definitely on the right track, putting out lots of effort to make sure that declaring itself the “Clean Energy State” is not just talk. With a wide range of incentives and tax rebates, along with clean energy workshops run by the New Mexico Public Regulation Commission, is really putting the sun to work above the Land of Enchantment. The state is getting serious about building a clean energy economy.

Click here to have multiple solar installers bid to upgrade your New Mexico home or business.