New Mexico Solar Energy Incentives, Tax Credits and Rebates
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In light of many recent changes and improvements to solar incentives, we are in the process of rebuilding this section to give you the most current and accurate information. In the meantime, please visit the very informative DSIRE website for a list of New Mexico incentives.
Below, you'll find a list of renewable energy tax incentives relevant to New Mexico and the PNM service area. These may vary somewhat by your location. Federal incentives are set to expire at the end of 2008.
Please note: The following list gives you a good idea of the available incentives, but should not be construed as tax advice. Your specific tax situations might involve variables that are unique, and only your accountant can give you a definitive idea of those incentives.
For comprehensive information on New Mexico incentives that promote renewable energy, visit the www.dsireusa.org. DSIRE stands for "Database of State Incentives for Renewables and Efficiency."
Highlights:
1. No Gross Receipts Tax on solar equipment or installation ($67 value per $1000)
2. PNM – Net metering available so that usage can be “zeroed” out – excess production rolls meter backwards.
3. PNM – Renewable Energy Credit ($0.13 / kWh produced)
• If system produces an average of 300 kWh / month year round, incentive = $360 for the year.
• Must be enrolled in net metering program
• 310 will handle (and explain) application process for customer
4. Federal Tax Incentive – 30% tax credit
• 30% of the cost of the system installed (equipment and labor)
• Capped at $2,000 for residential
• No cap for commercial system
5. New Mexico State Tax incentives
• 10% of cost of system, after Federal tax credit (residential)
• Ensures residential consumer receives full 40%
• Can be carried over for up to 10 years
• Up to $9,000 and is counted separately toward different systems (i.e. up to $9,000 for solar thermal and $9,000 for PV)
6. New Mexico Sustainable Building Tax Credits (Builders and anyone building a new home)
• Based on Build Green New Mexico and LEED for Homes (residential) – up to $18,000 available for residential new construction.
• Commercial is based on LEED criteria.
Sample Project Cost Estimates
2-3 Bedroom Townhouse (1,200 sq ft) — 1.8kW |
|
Number of solar panels required |
10 |
AC kWhs generated per month |
243 |
Approximate cost |
$15,300 |
| Less State & Federal tax incentive |
($4,590) |
| Estimated customer total |
$10,710 |
| Estimated monthly payment |
$69.96 |
| Less average monthly savings on electric bill (at $0.09 per kWh; assumes average monthly usage of 500 kWh) |
($22) |
| Less PNM’s Renewable Energy monthly rebate |
($32) |
Estimated net monthly cost for customer |
$16 |
3-4 Bedroom House (2,800 sq ft) — 4kW |
|
Number of solar panels required |
22 |
AC kWhs generated per month |
579 |
Approximate cost |
$36,000 |
Less State & Federal tax incentive |
($9,000) |
Estimated customer total |
$27,000 |
Estimated monthly payment |
$180 |
Less average monthly savings on electric bill (at $0.09 per kWh; assumes average monthly usage of 500 kWh) |
($63) |
Less PNM’s Renewable Energy monthly rebate |
($75) |
Estimated net monthly cost for customer |
$42 |
Residential or Commercial Example |
|
Approximate cost |
$5,950 |
Less State & Federal tax incentive |
($1,785) |
Estimated customer total |
$3,165 |
Estimated monthly payment |
$30 |
Less average monthly savings on gas bill (est.) |
($40) |
What Solahart puts in your pocket each month with today's rates!! |
$10 |
• Average system life is 25 years or more. • Additional tax benefits if financed (mortgage interest) • Fuel is free for as long as the system lasts!
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