Albuquerque, the largest city in New Mexico, experiences over 300 sunny days each year. Its geographical location makes it an ideal place to harness solar energy. The city gets six to eight peak sun hours per day.
One peak sun hour provides 1000 watts of photovoltaic power per square meter. So, solar panels in Albuquerque will translate to more energy and more savings on electrical bills.
How Much Do Solar System Installations Cost?
Based on the latest 2023 data, Albuquerque’s average solar panel cost is $2.62 per watt. A home that typically requires a 6000-watt system will have to shell out $15,720 for installation. This amount reflects the net after federal tax deductions.
Solar panel installation in Albuquerque is not as expensive as you’d think. The cost of solar power is the same or even less than the usual electric bill. However, unlike your bill from the utility company, it will never go up.
How much savings can I get from having solar panels in my home?
If you decide to have solar panels in your home, the savings that you can get depend on your electricity usage. In general, the higher your power consumption, the greater your savings are from your solar panel system.
To help you decide, you may refer to this table that shows savings for an average-sized solar system in Albuquerque.
|Consumption (based on average-sized residential solar panel system)||7.61 kW|
|Cost per watt range||$2.62|
|Net cost of solar panel system||$10,877|
|Annual power production||11,284 kWh|
|Average payback||6.2 – 7.5 years|
|Levelized cost of solar energy||$0.04 / kWh|
|Cost if you do not go solar (forecast average in the next 25 years of New Mexico electricity rates)||$0.25 / kWh|
|Average savings for the next 25 years (after capital repayments)||$43,083|
Having solar panels installed in your home is just like paying your usual monthly bills. However, you will be reaping the following benefits:
- The amount you pay every month is locked in for practically a lifetime.
- You can transform your monthly expense into an investment. Prices of real estate with installed solar panels are higher than those without them.
- You are contributing to saving the planet.
What are the tax credits and rebates for solar panel installation in Albuquerque?
Solar panel installation in Albuquerque has become more affordable because of tax, federal, and state credits. These incentives make it one of the most accessible private utilities. New Mexico, where Albuquerque is located, has excellent tax credits. These include the Federal Solar Tax Credit. Solar Market Development Tax Credit, Net Metering, and Property Tax Exemption.
Federal Solar Tax Credit
This tax incentive, commonly known as the Investment Tax Credit (ITC), now permits you to deduct 30% of the solar panel system installation costs from your federal taxes, with no maximum limit. Notably, this 30% benefit applies if you set up your system by 2032.
While the credit was originally slated to reduce to zero after 2024, the new legislation has shifted the timeline, allowing for a 26% reduction in 2033 and a 22% reduction in 2034. By 2035, the tax credit will no longer be available.
|System Size||Cost||After 30% ITC|
New Mexico Solar Market Development Tax Credit
In 2020, New Mexico Governor Michelle Grisham signed the New Mexico Solar Tax Credit Legislation. The bill states that solar energy systems will have a 10% tax credit with a savings value of $6000. It also declared that homeowners and business owners who installed a solar energy system after March 1, 2020, are eligible for a non-refundable tax credit.
The legislation is an excellent incentive for New Mexico residents who want to shift to solar power. However, they should note that it is on a first-come, first-served basis since it only has an annual allotment of $8M.
There will be times when the solar panels on your roof will generate power above what you need for your home or business. It’s a great thing that New Mexico, where Albuquerque is located, has a program on net metering wherein you receive credits for the extra electricity produced by your system.
It allows you to use those credits when your system fails to generate enough power for your consumption.
Property Tax Exemption
New Mexico also offers sales tax exemptions to homeowners and business owners when they install solar panels. They are no longer required to pay an additional state sales tax when purchasing a solar panel system.
Top 7 Local Solar Companies
Albuquerque is home to several solar companies. We’ve rounded up the top 7 to help you choose the best one for you.
1. OE Solar
Since 2009, OE Solar has been the leading solar installer in Albuquerque. It also belongs to the top 500 electrical contractors in the US. They employ a diverse team of NABCEP and Tesla accredited installers to ensure their work complies with high standards of quality.
Location: 1300 1st St NW, Albuquerque, NM 87102
This local and employee-owned solar company is the highest rated with over 300 5-star reviews. A Certified B Corporation follows the “People, Planet, Profit” bottom line philosophy. The company has been installing solar electric systems since 1997 and has completed more than 3,500 projects.
Location: 3651 Princeton Dr NE, Albuquerque, NM 87107
3. NM Solar
This award-winning solar company has provided solar energy system design, support, installation, and maintenance to over 3000 homes. It is an employee-owned company that has expanded outside of Albuquerque to include other areas such as Alamogordo, Rio Rancho, Roswell, and Las Cruces.
Location:4140 Jackie Rd SE, Rio Rancho, NM 87124
4. My Solar
This Albuquerque company installs and activates solar energy for businesses and homes without charging any upfront costs. They do not offer any leasing so that customers can enjoy the benefits of tax credits. They also ensure that their clientele will be paying the minimum payment that comes from direct ownership.
Location: 6310 Edith Blvd NE B, Albuquerque, NM 87107
This locally owned and operated solar company has over 18 years of experience in the industry. It has installed and designed solar systems that totaled over 1 Megawatt of solar PV. It ensures low-cost services without sacrificing quality workmanship.
This company, based in Albuquerque, is a leading energy storage and solar contractor in the South West. It has been operating since 1998 and has installed over 4,300 solar energy systems. Aside from residences, it also supplies systems to local and international industrial, commercial, and scientific establishments.
Location: 4840 Pan American, E FWY NE, Albuquerque, NM 87109
This award-winning, veteran-owned contractor is fully licensed to handle solar energy system installations. It also offers other home improvement services such as HVAC, electrical, and plumbing installation and maintenance. It has certification from the Building Performance Institute (BPI) and the Environmental Protection Agency (EPA).
Location: 3540 Pan American Fwy NE Suite E, Albuquerque, NM 87107
What to Look for When Installing Solar Panels in Albuquerque
Albuquerque is a New Mexico city that lies on the upper part of the Chihuahuan Desert northern borders. It receives the brightest and most consistent sunlight in the US, making it viable to install solar panels.
Peak Sun Hours
Albuquerque holds the record of having one of the highest peak sun hours in the country. A peak sun hour is when the solar irradiance’s intensity reaches 1000 watts per square meter. Therefore, if the city records 8 hours of peak sun hours, on average, that’s 8000 watts of clean and abundant energy.
The only time that the peak sun hours in Albuquerque fluctuate is between November to January, where they only get four peak sun hours. However, that is still a good amount compared to other states.
The Angle of Solar Panels
To maximize energy production, you must consider the angles of your solar array. Your location determines the best angle for your panels since it is based on the average position of the sun over your roof.
Most solar panels are tilted to face the sun as close as possible. This position ensures the efficient harnessing of solar energy. Photovoltaics produce power when the light strikes the solar panel as close to a perpendicular angle as possible. The angle of incidence (the angle at which the sun’s rays hit the panel surface) also affects solar energy production.
The following table shows the ideal angle of solar panels when installed in Albuquerque.
|all year round||35 degrees|
When you tilt your solar panels at the same angle as your home’s latitude, you ensure that you will receive the maximum average output from your solar energy system throughout the whole year. However, it would be best to follow the exact required angles to get the best outcome for every season.
New Mexico is blessed with abundant sunshine and prosperous cloudless days, making it ideal to install solar energy systems. Their local government also provided the best assistance through incentives and tax rebates to make solar power accessible to everyone.
Several companies based in Albuquerque can help you in the installation and maintenance of your solar energy system. Most have been in the industry for many years. Their quality and experience can guarantee a system that can ensure the return of your investment.