On average, electricity users in New Mexico spend about $134 per month on electricity. That adds up to $1,608 per year.
That’s 16% lower than the national average electric bill of $1,919. The average electricity rates in New Mexico cost 15 ¢/kilowatt-hour (kWh), so that means that the average electricity customer in New Mexico is using 902 kWh of electricity per month, and 10,824 kWh over the course of the year.
Solar saves you money by reducing or eliminating your monthly electricity bill. The amount that you can save with solar in New Mexico is based on two factors: how much you spend on electricity now and how much of your electricity bill you can offset with solar.
Based on the intensity and amount of sunlight hours in New Mexico, the average electricity customer in New Mexico will need a 5.9 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption of 10,824 kWh per year. On the EnergySage Marketplace, solar shoppers in New Mexico pay an average of $20,000 for a 5.9 kW solar panel system prior to incentives.
The savings from offsetting 100% of an electricity bill with solar can add up fast! Assuming an 2.4% annual increase in electricity prices, someone in New Mexico can expect to save $1,600 in their first year, $8,400 over five years, $17,900 over 10 years, and $40,600 over 20 years on electricity bills.
Monthly electricity bills are a product of how much electricity you use per month and the rate you pay for electricity. In New Mexico, the average monthly electricity bill for residential consumers is $134/month, which is calculated by multiplying the average monthly consumption by the average rate for electricity: 902 kWh * 15 ¢/kWh.
Electricity bills are designed to cover all of the costs of producing the electricity that you use, of running and maintaining the electrical grid, and of any public benefit funds that promote things like clean energy and energy efficiency. These costs are rolled into both fixed charges (i.e., monthly customer chargers) and variable charges (i.e., ¢/kWh that you use). While fixed charges will remain the same from month to month, the portion of variable charges on your bill each month will change based on how much electricity you use. As a result, there are two ways to reduce your bills: by either using less electricity or by reducing the cost of electricity, by installing solar for instance.
The easiest way to compare the cost of electricity from one region to another is to look at the electricity rate. Residential rates in the U.S. range from 6 ¢/kWh to 42 ¢/kWh depending upon where you live, what types of power plants provide your electricity, and when during the day or year you’re consuming electricity.
The average residential electricity rate in New Mexico is 15 ¢/kWh, which is 3% lower than the national average rate of 15 ¢/kWh.
Solar panel systems help you save money by reducing your monthly electricity bills. Although a $50 or $100 electricity bill might not seem like much when you pay it each month, those bills add up quickly over ten, twenty or even thirty years: if you pay $100 per month in electricity now, you’ll pay over $52,000 on electricity over the next thirty years!
|EXISTING BILL||10 YEAR COST||20 YEAR COST||30 YEAR COST|
Assuming a 2.4% annual increase based on inflation and average annual rate increases.
Installing solar allows you to reduce or even eliminate your electricity bill: when you pay upfront for solar panels, you are effectively paying today for the electricity you’ll use over the next 25 or even 30 years. Calculating your savings from investing in solar is as simple as subtracting the amount you pay for solar from what you would have paid for electricity otherwise.
We know electricity bills add up over time, and going solar is a great way to save money while helping the environment. When you sign up on the EnergySage Marketplace, you'll be able to receive and compare solar quotes side-by-side from qualified solar installers in your area. We're here to help along the way - talk with one of our Energy Advisors to learn more about your unique quotes, any local solar incentives you may be eligible for, or any other questions about saving on electric bills with solar.