Solar Incentives in New Mexico (2026)
The 30% federal tax credit for purchased home solar ended Dec 31, 2025. Here's exactly what solar incentives are left in New Mexico in 2026 — and how much they're worth.
| State tax credit | 10% up to $6,000 |
|---|---|
| SREC market | No |
| Net metering | Retail net metering (1:1) — see New Mexico net metering → |
| Other incentives | New Mexico's New Solar Market Development Tax Credit covers 10% of cost (capped at $6,000), plus a property-tax/sustainable-building exemption. |
Incentive details reflect programs active in 2026. Programs change and often have caps or waitlists — always confirm current status on DSIRE and with your installer.
Federal credit status (2026): the 30% residential clean-energy credit (Section 25D) was repealed for systems purchased and placed in service after Dec 31, 2025 — cash and financed buyers can no longer claim it. A leased or PPA system can still access the commercial credit (Section 48E), which its owner can claim through 2027 and may pass on as a lower price. That makes New Mexico's state and utility incentives, not the federal credit, the main lever on your 2026 payback.
How much can you actually save in New Mexico?
A typical 8 kW install in New Mexico costs about $20,400 before incentives. New Mexico's state tax credit (10% up to $6,000) comes straight off that, and retail net metering (1:1) plus new Mexico's New Solar Market Development Tax Credit covers 10% of cost (capped at $6,000), plus a property-tax/sustainable-building exemption drive the rest of the payback. With the 30% federal credit gone, that state credit is now the single biggest upfront saving most New Mexico homeowners can claim.
See full solar costs & payback for New Mexico
Solar panel cost in New Mexico →New Mexico solar incentives FAQ
Does New Mexico have a solar tax credit?
Yes. New Mexico offers a state solar tax credit of 10% up to $6,000, claimed on your state income taxes. It's separate from (and, in 2026, no longer stacked with) the expired federal credit.
Does New Mexico have an SREC market?
No. New Mexico does not have an active SREC market, so there are no tradable solar certificates to sell here. Your return comes from retail net metering (1:1), any state or utility incentives, and avoided electricity costs.
Can I still get the 30% federal solar tax credit in New Mexico?
Not if you buy the system. The federal residential (25D) credit was repealed for purchases placed in service after Dec 31, 2025. A leased or PPA system can still tap the commercial (48E) credit its owner claims through 2027, which may show up as a lower rate — but you won't file for 30% yourself on a cash or financed purchase.
What incentives are left in New Mexico in 2026?
A 10% up to $6,000 state tax credit, retail net metering (1:1), and: New Mexico's New Solar Market Development Tax Credit covers 10% of cost (capped at $6,000), plus a property-tax/sustainable-building exemption. Always confirm current program status on DSIRE before signing.