New Mexico solar rebates and incentives: 2026 guide

Solar panels might seem expensive, but if you live in New Mexico, you're in luck. Your state offers some of the most generous solar incentives in the country, helping thousands of homeowners shrink their upfront costs while locking in decades of lower electricity bills. There are multiple ways to bring down the price of going solar—and start saving sooner than you might think.

Even better? The long-term savings from reduced electricity costs typically outweigh your upfront investment. Here's how to take advantage of New Mexico's solar incentives.

Incentives help bring solar's price tag down considerably in New Mexico. Here are the major ones to know about:

In addition to the great rebates and incentives above, New Mexico also offers a tax exemption for solar panel systems. This solar property tax exemption means you don't need to pay a higher property tax for adding solar panels to your house.

If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in New Mexico. 

With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels. 

Regulated electric companies and Investor Owned Utilities (IOUs) in New Mexico are required to support net metering for solar panel systems under 10 kW. While the state’s municipal utilities and electric cooperatives aren’t required to offer net metering, many do so voluntarily, so make sure to check with your specific provider.

Under New Mexico’s net metering program, you’ll earn credits at the retail rate of electricity for each kWh of electricity your system produces up to 100% of your utility electricity demand. Your credits roll over month to month indefinitely. 

If you send more electricity to the grid than you use, you’ll be credited at the avoided cost rate for your excess generation. Some utility companies credit you at the end of each month, while others give an end-of-year payout, so check with your specific utility company to understand your schedule.

New Mexico doesn’t currently offer any state-specific battery incentives—but that may change soon. 

House Bill 51 was introduced on January 21, 2025 and as of this writing is currently in committee. If this bill is passed into law, it’ll give individuals a 40% tax credit on purchase and installation costs for an energy storage system up to $6,000. If passed into law, this program would expire on January 1, 2031. 

Right now, there’s no way to know if and when the bill will pass, but you can track its progress here.

Plus, installing a solar battery is a great way to boost your energy independence by giving you a free, clean source of back-up power during outages.

If you're looking for solar installers in New Mexico, here are some popular suggestions: