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#9 Solar ROI State

Solar Panel ROI in New Mexico (NM)

New Mexico averages 1,700 kWh per installed kW per year. At $13.8¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $15,834.

$11,256
System Cost (After Credits)
$15,834
25-Year NPV
7 years
Payback Period
$0.101/kWh
Solar LCOE

Solar Cost Breakdown in New Mexico

7 kW system (2.68/W)$18,760
Federal ITC (30%)-$5,628
New Mexico state credit (10%, capped at $6,000)-$1,876
Net Cost$11,256

Solar Production in New Mexico

New Mexico receives an average of 1,700 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 11,900 kWh in year one, declining by 0.5% annually due to panel degradation.

At New Mexico's average residential rate of $13.8¢/kWh with 4% annual escalation, first-year savings are $1,642. The solar LCOE of $0.101/kWh is 27% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in New Mexico

1:1 net metering for systems up to 80 MW

Solar FAQ for New Mexico

How much does solar cost in New Mexico?
A typical 7 kW residential solar system in New Mexico costs $18,760 before incentives. After the 30% federal ITC and $1,876 state credit, the net cost drops to $11,256.
What is the solar payback period in New Mexico?
Based on the average NM utility rate of $13.8¢/kWh and local solar irradiance of 1,700 kWh/kW/year, a 7 kW system typically pays for itself in 7 years. The 25-year NPV is $15,834.
Does New Mexico have net metering?
1:1 net metering for systems up to 80 MW
What is the LCOE of solar in New Mexico?
The levelized cost of solar energy in New Mexico is approximately $0.101/kWh, compared to the current average utility rate of $13.8¢/kWh. Solar electricity costs 27% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in New Mexico?
New Mexico receives approximately 1,700 kWh of solar energy per installed kW per year. A 7 kW system produces about 11,900 kWh in its first year, enough to offset 113% of the average U.S. household's electricity consumption.

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Solar ROI in Similar States

California

NPV: $41,579 · Payback: 5yr
Rate: $28.2¢/kWh · #1 ranked

Hawaii

NPV: $68,203 · Payback: 3yr
Rate: $39.8¢/kWh · #2 ranked

New York

NPV: $20,948 · Payback: 6yr
Rate: $22.2¢/kWh · #3 ranked

Massachusetts

NPV: $27,033 · Payback: 6yr
Rate: $28.2¢/kWh · #4 ranked

Arizona

NPV: $14,954 · Payback: 8yr
Rate: $13.2¢/kWh · #5 ranked

Nevada

NPV: $12,806 · Payback: 8yr
Rate: $13.2¢/kWh · #6 ranked

Get Your New Mexico Solar Analysis

These are averages. Your ROI depends on your specific utility, consumption, roof, and system size. Run a personalized 25-year NPV analysis — free.

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