Learn how you can save thousands on solar power installation through solar panel tax incentives.
Despite the beneficial cost-saving power of solar energy, many homeowners are still hesitant to switch, but why? Some believe that the initial price ceiling of installing solar power is too high to justify.
However, the costs are actually much lower than many assume, especially if you take advantage of renewable energy tax incentives and programs.
New Mexico is a prime location for solar power with its well above average 280+ days of sunshine per year. If you’re worried about the costs, the state offers generous incentives, rebates, and programs that can save you thousands.
Solar Panel Tax Incentives in New Mexico
- Solar Energy Property Tax Exemption
One factor that makes people shy away from solar panel systems is that they can lead to higher property taxes—but not in New Mexico. New Mexico and several other states exempt solar energy from this tax. You essentially get the benefits of increasing your home’s value without worrying about a property tax increase!
- Sustainable Building Tax Credit
New Mexico also offers the Sustainable Building Practices tax credit. You can take advantage of this by getting LEED certification from the U.S. Green Building Council.
This certification is awarded based on the level of eco-friendliness you achieve, with levels varying from simply “Certified” to “Platinium” certification. The higher your certification level, the higher the credit value. The maximum credit is $6.50 per square foot.
- Federal Solar Tax Credit
Aside from the state’s solar tax credit (that can save you 10% off your solar energy expenses up to $6,000), you can also apply for the federal tax credit. This credit reduces service costs from local solar companies.
You can claim 26% of your equipment and installation fees, but act fast if you want to take advantage of this tax incentive—it’s being phased out as follows:
- 2020 – 26% tax credit
- 2021 – 22% tax credit
- 2022 and beyond – 10% tax credit for commercial systems only
There’s no better time to transition to solar energy than the present. The sooner you switch, the more money you can save.
Turn Your Excess Solar Power into Extra Cash
One excellent benefit of an efficient solar panel system for home use is its ability to earn credits from excess power. New Mexico’s net metering policy compensates you for the extra energy generated panels don’t produce enough power.
If you’re interested, several local utilities, such as PNP, Xcel Energy, and El Paso Electric Company, offer net metering in the form of renewable energy certification programs.
A Cost-Saving and Eco-Friendly Energy Solution
Solar panel tax incentives significantly lower the price hurdle of solar panel installation. By applying for the programs we’ve listed above, you can potentially save thousands when implementing sustainable energy for your home.
If you want to know more about the benefits of owning a solar panel system, feel free to contact us. Our team is happy to answer any questions you may have about saving money through solar tax credits—or anything else solar-related. Want to know more about solar panel tax incentives? Check out our blog on the New Mexico State Tax Incentive for Solar Panels.