Benefits of Solar Energy
Solar energy provides multiple advantages. Here are some highlights.
- Reduced carbon footprint: The sun is the universe's most abundant clean energy source, meaning you can reduce or eliminate your home's dependence on non-renewable sources.
- Better energy independence: Photovoltaic solar panel systems with energy storage systems work through power outages and emergencies, and you won't have to depend on the grid for your safety and comfort.
- Lowered energy bills: Solar panels let you generate your own energy to power your home, minimizing your periodic electricity costs. You can eliminate your bills completely if you go off-grid. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
What Solar Incentives Are Available to Las Cruces Homeowners?
The state of New Mexico offers a number of solar incentives to help reduce your solar system costs. Here is a breakdown of available solar programs where you live.
Incentive Type: Property Tax Incentive
Incentive Amount:
Approximately 100%
Incentive Type: Sales Tax Incentive
Website: emnrd.state.nm.usIncentive Amount:
100% of gross receipts from sale and installation of solar energy systems, dark-colored water tanks, and non-vented trombe walls
Incentive Type: Personal Tax Credit
Website: emnrd.state.nm.usIncentive Amount:
30%
Incentive Type: Corporate Tax Credit
Website: emnrd.state.nm.usIncentive Amount:
30%
Incentive Type: PACE Financing
Website: emnrd.state.nm.usIncentive Amount:
Determined locally
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Las Cruces
The price and effectiveness of solar panels often rely on the solar company that installed them. Consider each of these criteria in your contractor search.
Licensing and Training
New Mexico regulations require that solar installation supervisors must be master electricians or plumbers, with journeymen leading the wiring and piping work. Each journeyman assigned to your project will have at least two years of experience installing solar devices. You should also visit a company's website to learn about its private accreditations. Two of the most recognized are the PV Installation Professional and Solar Heating Installer certificates, granted by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Las Cruces
The style of solar panels you purchase determines how much energy you can generate. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't the best for large residential installations, but they are excellent accessories for non-traditional roofs.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can increase your solar system's efficiency. Not all solar companies provide these optional components, so look for a provider that installs them if it's essential for you.
Generally speaking, it costs about $19,650 for a five-kilowatt solar array in Las Cruces. This table shows more specific prices for different solar panel types and system components in your area.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,066 |
Solar Polycrystalline | $832 |
Thin-Film | $486 |
Solar Battery | $682 |
Solar Home EV Charger | $2,559 |
Financing Solar Energy in Las Cruces
There are various ways to pay for a solar energy system, and the right one will reduce your expenses. A few of the most common options include power purchase agreements (PPAs), loans, cash payments, and leases. Though it involves a large up-front payment, cash is the most economical choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for cost-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases let you use your panels for a set monthly rate, while PPAs let you pay just for the energy you use, akin to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for installers that offer several payment plans to find the right fit for your budget.
The table below lists the average payback periods for different capacities of solar systems in Las Cruces.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, local governments and utilities may have their own financing plans and rebates that could reduce your total cost even more.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 1.4 years |
2 kW | 2.9 years |
5 kW | 7.2 years |
10 kW | 14.3 years |
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Frequently Asked Questions About Solar in Las Cruces
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