With its vast landscape and abundant sunshine, New Mexico is an ideal location for producing clean, renewable energy. In 2023, the state went from just under 400 MW of total solar installed to an incredible 1,564 MW in 2024, elevating its ranking as one of the most successful states in solar energy generation.
New Mexico’s solar market value is estimated at $5.5 billion, with approximately $1.9 billion invested in 2024 alone. Over the next five years, New Mexico can expect an additional 4,640 MW to help it reach its ambitious goal of 80% renewable energy by 2040.
The New Mexico State Land Office has an estimated nine million acres of land available to lease for the development of clean, renewable energy. Through solar energy incentives and programs, community solar projects are making renewable energy affordable and accessible for all New Mexicans.
What are New Mexico Solar Incentives?
Solar incentives in New Mexico are financial programs and policy mechanisms designed to make solar energy more accessible and affordable for residents, businesses, and communities statewide. The state has implemented these programs to accelerate renewable energy adoption, create jobs, reduce greenhouse gas emissions, and provide energy independence for New Mexican communities.
What Solar Incentives are Available in New Mexico?
New Mexico offers several key solar incentives designed to make renewable energy accessible and affordable for communities across the state.
New Solar Market Development Income Tax Credit (NSMDTC)
The New Solar Market Development Income Tax Credit provides substantial tax benefits for solar installations in New Mexico. It allows taxpayers to receive a 10% credit, up to $6,000 of their solar system costs as a direct reduction in their state income tax liability. The NSMDTC is designed to stimulate solar market growth by making solar investments more financially attractive. The credit applies to various types of solar installations, including residential, commercial, and community solar projects, making it a versatile incentive that supports solar development across multiple sectors.
Solar for All
The Solar for All program, slated to go live in late 2025, is a U.S. Environmental Protection Agency (EPA) program focusing on expanding solar access to underserved communities and low-income households nationwide. In April 2024, the State of New Mexico received a $156 million Solar for All grant to fund photovoltaic (PV) systems for households that otherwise may not be able to access clean, renewable energy. For example, the program can support community solar projects, allowing entire neighborhoods and communities to access this energy, including homes on tribal lands.
The program targets households earning at or below 80% of the area median income or those participating in federal assistance programs such as SNAP or LIHEAP, ensuring that solar benefits reach families most in need of energy savings.
New Mexico Community Solar Program
The New Mexico Community Solar Program operates through large solar installations that distribute cost-saving benefits among multiple customers, making solar accessible to residents who cannot install individual systems. Community solar subscribers receive credits on their electric bills that reduce their utility costs while paying a separate bill to their community solar provider for their share of the solar energy produced. This program specifically extends solar benefits to people living in apartments or those who cannot afford upfront installation costs. The program prioritizes low-income participation by requiring each project to reserve at least 30% of available capacity for low-income subscribers.
New Mexico Solar Incentives – FAQs
Is solar in New Mexico worth it?
Solar energy in New Mexico delivers substantial economic and environmental benefits, making it an excellent investment for communities. According to research from the University of New Mexico, the state’s Community Solar Program alone will generate over $517 million in economic benefits over five years while creating 3,760 high-quality jobs across various sectors. Each county in New Mexico stands to benefit from approximately $15 million in economic output and 117 new jobs over a 20-year period. These programs help modernize and decarbonize New Mexico’s electrical grid while providing direct savings to subscribers through reduced electricity costs.
How much money can I save with New Mexico’s solar incentives?
Participating in community solar projects guarantees subscribers a 10% savings on their utility bills. With U.S. Light Energy, there are no long-term contracts or subscription fees—simply “pay-as-you-go!”
How do I apply for New Mexico’s solar tax credit?
New Mexico taxpayers who buy and install PV systems can apply for the solar tax credit, provided they are not dependents of other individuals. The photovoltaic system must have been purchased after March 1, 2020.
How much does it cost to install solar in New Mexico?
Community solar projects have zero upfront costs for subscribers. Whether a business, renter, or homeowner, there is no need to install equipment on your property. The solar farm is built off-site and connected to the local power grid for participants to access.
Find New Mexico Solar Options with U.S. Light Energy
U.S. Light Energy (USLE) brings community solar opportunities directly to residents and communities across New Mexico, making clean energy accessible without the need for rooftop installations, high upfront costs, or property ownership requirements. Through our innovative community solar projects, subscribers can reduce their electricity bills while supporting local renewable energy development and contributing to a cleaner grid for all New Mexicans.
Whether you’re a homeowner, renter, or business owner, community solar offers a flexible and affordable path to clean energy participation. Our approach focuses on delivering real savings and environmental benefits while strengthening local communities through sustainable energy solutions. Contact us today to learn more about how you can participate in community solar in your area! U.S. Light Energy is leading the charge for a new generation.
References:
https://seia.org/state-solar-policy/new-mexico-solar/
https://www.nmstatelands.org/divisions/commercial-resources/renewable-energy/
https://uslightenergy.com/community-solar/community-solar-farm/
https://www.emnrd.nm.gov/ecmd/tax-incentives/solar-market-development-tax-credit-smdtc/
https://www.emnrd.nm.gov/ecmd/faq/solar-for-all-program/
https://csnewmexico.com/about/
https://uslightenergy.com/what-is-a-solar-farm-and-how-does-it-work/
https://uslightenergy.com/about/contact/