How Solar Works In New Mexico
Have you ever thought about plugging into the sun? Even the inventor of the lightbulb thought that using nature’s resources as a power source was important.
How does solar produce energy for my home?
Solar basically uses the sun’s light to be converted to energy to power your electricity needs. Once panels are installed, the energy produced by the sun is converted in your solar system via your inverter to be used directly in your home. For an easy way to understand solar, look at our graphic below.
Reasons to Go Solar
There are numerous benefits to going solar. Below are the top benefits of converting to renewable energy.
- Save money and control energy costs- this by far is the biggest reason most people go solar. People are able to invest in their own energy source and own it. Instead of ‘renting’ electricity from their utility company, they are harvesting power from the sun to power their lifestyle.
- Increase the value of your home—when you move you can list your home at a higher market value since it will be more attractive to new buyers, if you own your system. Your home can qualify to be listed in green categories, depending on your county requirements, since your house is more energy efficient and energy conscious. This allows to compete with new energy certified homes being built.
- Help the environment—making choices with your wallet, even with utilities is making a difference for clean, sustainable energy. Reducing your carbon footprint will have an environmental impact!
- Store energy for future use—the unused energy produced by your system will be stored for you to use at a later time. If you go over the energy produced by your system, you’ll be billed for that extra energy by your local utility provider. So you don’t have to worry about running out of power and it’s trackable through your solar app monitoring system and utility meter.
Reasons to Wait to Go Solar
- Planning on Moving—it’s best to wait until you relocate to your new residence to go solar.
- Bad roof—placing solar on a good roof is integral to a good experience with solar. If you’re roof is in need for a replacement, consider asking your solar advisor to bundle your roof loan with your solar loan to make the most out of your investment.
- You want to Lease solar– OWNING solar is our highest recommendation on this subject. When you lease solar, you as the homeowner do not reap the massive tax benefits that come along with owning solar. Below is a graph we created to show you the difference.
Current Tax Benefits
The federal government and the state of New Mexico have several tax incentives to go solar. These incentives have certain deadlines you need to follow and should be filed with your tax professional.
- 26% federal tax credit—expires 12/31/20
- 22% federal tax credit—valid calendar year of 2021
New Mexico State Incentives
- 10% state tax credit—valid 3/1/20- 12/31/27
- There’s a cap of $6000 per system to qualify for the tax credit
- There’s a limit each year of $8M in state funds
- See full bill here: https://www.nmlegis.gov/Sessions/20%20Regular/Amendments_In_Context/SB0029.pdf
- $0 State Sales Tax—current rules, subject to change
- $0 Property Tax—you will still be charged property tax, just not on your solar system.
How much will I save?
You swap your electricity bill for a solar bill. Once your solar bill is paid off (at a fixed monthly rate), you won’t have an electric bill, except for a small fee to stay on the grid. On the other hand, your utility bill is subject to yearly rate increases and will never be paid off.
The cost of doing nothing is that you will pay approximately to the utility the same amount of money in a 10-year period as you would be buying your own solar system.
Thousands of people in New Mexico are reaping the benefits of our AMAZING sun by investing in solar.
Click below to see how much you’ll save by going solar.
Plus, through April 30, 2020 we are PAYING for your electricity bill until you Go Solar with our company with 6 months deferred payments.