Solar Panel Savings in New Mexico

New Mexico gets 6.3 peak sun hours per day with electricity at 14¢/kWh. See how much you can save with solar panels.

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Avg Sun Hours/Day
6.3
Electricity Rate
14¢/kWh
Solar Cost
$2.6/W
State Incentive
10%

Solar Panel Cost & Savings by System Size in New Mexico

System SizeGross CostAfter CreditsPayback25-Year SavingsAnnual kWh
6 kW$15,600$9,3607.1 yrs$34,39113,797
8 kW$20,800$12,4809.2 yrs$31,27118,396
10 kW$26,000$15,60011.1 yrs$28,15122,995
12 kW$31,200$18,72013.0 yrs$25,03127,594

Includes 30% federal ITC + 10% New Mexico state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.

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New Mexico Solar Incentives

Federal ITC (2026)30% of system cost
New Mexico State Credit10%
Combined savings (8kW)$8,320
Net system cost (8kW)$12,480

New Mexico Energy Profile

Avg Electricity Rate14¢/kWh
Avg Gas Price$3.25/gal
Avg Annual Electric Bill$1,200
Peak Sun Hours/Day6.3 hrs

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Is Solar Worth It in New Mexico?

New Mexico averages 6.3 peak sun hours per day, which means an 8 kW solar system would produce approximately 18,396 kWh per year. At the state's average electricity rate of 14¢/kWh, that translates to significant annual savings on your electric bill.

With the federal 30% Investment Tax Credit and New Mexico's 10% state incentive, an 8 kW system costing $20,800 drops to just $12,480 after credits — with a payback period of approximately 9.2 years.

Over 25 years, homeowners in New Mexico can expect to save $31,271 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of excellent sun exposure and strong incentives makes solar a solid investment in New Mexico.