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Solar incentives · New Mexico · 2026
Solar rebates in New Mexico.
The federal, state, and utility solar incentives available in New Mexico for 2026, then matched to a vetted local installer.
Programs · New Mexico
8
active programs & rules in 2026
Retail-rate net metering, with a 10 kW AC threshold at PNM · verified 2026-09-01
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The full list
8 programs available right now in New Mexico.
Tax credit
#01
Federal Residential Clean Energy Credit (Section 25D) - ENDED
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025. Cash and loan purchases made now receive no federal tax credit. Unlike most states, New Mexico still has a state credit of its own, so the stack is thinner than it was rather than empty.
Source ↗ Tax credit
#02
Federal Commercial ITC (Section 48E) - via Lease / PPA
Section 48E, the commercial Clean Electricity Investment Credit, survives at 30 percent and is available to third-party owners of residential systems under leases and power purchase agreements. The provider claims it and may reflect part of the value in the rate offered. Note that under a lease or power purchase agreement you generally do not own the system, which affects whether you can claim the state Solar Market Development Tax Credit, so ask before choosing a structure.
Source ↗ Tax credit
#03
NM Solar Market Development Tax Credit (SMDTC) - 10%, up to $6,000
Up to 10 percent of the cost of equipment, materials and labour for a solar thermal or photovoltaic system, capped at $6,000 per taxpayer per taxable year. Individual taxpayers, corporations, agricultural enterprises and federally recognised Indian nations, tribes and pueblos may qualify where they own or hold in leasehold a property with an operating or substantially complete certified system. You apply to EMNRD through its electronic portal for a certificate of eligibility, then file the credit with New Mexico Taxation and Revenue. Allow three to four weeks for processing.
Source ↗ Program
#04
SMDTC $30 million annual cap and application deadline
The credit runs against an annual aggregate fund cap of $30 million per calendar year, in place from 2024 through December 31, 2031 and raised from a previous $12 million. Applications are reviewed first come, first served, and once the cap is met no further credits are issued for that year. The application must be made to EMNRD within one calendar year after the year of installation, so a system installed in 2026 has a deadline of December 31, 2027. Applying promptly is the practical protection against both limits.
Program
#05
Senate Bill 55 (30% credit) - DID NOT PASS
Senate Bill 55 would have raised the Solar Market Development Tax Credit from 10 percent to 30 percent and lifted the per-taxpayer cap from $6,000 to $15,000, for systems purchased and installed on or after March 1, 2026. It did not become law: action was postponed indefinitely on February 12, 2026. The credit remains 10 percent with a $6,000 cap. Treat any quote citing a 30 percent New Mexico credit as wrong rather than optimistic.
Tax credit
#06
Gross Receipts Tax Deduction
Solar equipment and installation labour are deducted from New Mexico gross receipts tax. Nothing is claimed and nothing is filed: the tax should simply be absent from your quoted price, which means the only way to verify it is to look for a line that should not be there. Ask directly whether the quoted price includes any gross receipts tax.
Tax credit
#07
Property Tax Exemption
New Mexico exempts the value that a solar energy system adds to a residential property from property taxation. The market value of the home rises while the assessment for the array does not, so it arrives as an absence rather than a payment and is easy to leave out of a homeowner calculation. If a savings model shows an assessment increase for the array, that is a modelling error.
Net metering
#08
Net Metering at the retail rate
New Mexico credits exported generation at the retail rate. Under PNM, systems of 10 kW AC or less accumulate kilowatt hour credits applied to future bills that do not expire while the account remains open, which is unusually good. Systems larger than 10 kW AC are instead paid monthly for excess at the utility approved purchase rate, which is lower. That 10 kW AC line is therefore a real design threshold rather than a technicality.
Net metering · New Mexico
Retail-rate net metering, with a 10 kW AC threshold at PNM
New Mexico credits exported solar generation at the retail rate, which after the changes made in many other states is now a genuine advantage. The detail that should shape a design is the threshold in the PNM arrangement. For systems of 10 kW AC or less, excess generation accumulates as kilowatt hour credits applied to future bills, and those credits do not expire while the account remains open. There is no annual true-up date at which unused credit is forfeited or donated, which is unusual and valuable. For systems larger than 10 kW AC, the treatment changes: rather than banking kilowatt hour credits, the customer is paid monthly for excess generation at the utility approved purchase rate, which is below the retail rate. So crossing 10 kW AC is not a gradual change in economics, it moves you onto a different and less favourable basis for everything you export. A design that lands just above the threshold should be examined closely, and one that lands just below it is often the better engineering answer. Other New Mexico utilities set their own arrangements, and municipal utilities in particular sit outside the investor-owned utility rules entirely, so confirm what applies at your address.
Worth checking before you sign:
taking a rebate can change your net-metering terms, and export credit rules
differ by utility. Your matched installer confirms the exact numbers for
your address.
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