Benefits of Solar Energy
Solar energy offers multiple perks. Here are some highlights.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by generating some electricity right where you use it. Plus, many states offer net metering which can allow you to sell your unused energy back to credit part of your bill.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems function through blackouts and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- Reduced carbon footprint: Solar is a highly abundant clean energy source, meaning you can lower or beat your home's dependence on non-renewable sources.
What Solar Incentives Are Available to Rio Rancho Homeowners?
The state of New Mexico offers a range 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: Performance-Based Incentive
Website: pnm.comIncentive Amount:
$0.0025/kWh
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 Rio Rancho
The price and efficiency of solar panels often hinge on which company mounted them. Here are some important factors to keep in mind while shopping for a solar specialist.
Licensing and Training
New Mexico regulations mandate that solar installation supervisors must be master electricians or plumbers, with journeymen leading the wiring and piping work. Each journeyman working on your installation will have at least two years of experience installing solar equipment. 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, backed 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 Rio Rancho
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
Additional accessories, such as electric vehicle (EV) chargers and battery storage, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar provider offers these optional components, so look for a company that sells them if it's important for you.
If you're a resident of Rio Rancho and want a five-kilowatt solar energy system, you could expect to pay about $19,650 for materials and labor. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,060 |
| Solar Polycrystalline | $827 |
| Thin-Film | $483 |
| Solar Battery | $678 |
| Solar Home EV Charger | $2,544 |
Financing Solar Energy in Rio Rancho
Solar providers use multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are cash payments, power purchase agreements (PPAs), solar leases and solar loans. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to a home or auto loan, you'll pay a set monthly rate with as little as $0 down. Solar leases let you use your panels for a fixed monthly rate, while PPAs let you pay just for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and do not provide you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. We suggest working with an installer that offers multiple financing options. Ask each agent about what's available, and get more than one estimate for the best odds of staying within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Rio Rancho.
The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. Local governments and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
| 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 Rio Rancho
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Rio Rancho?
Should I expect a property value increase after going solar?
Could I still use solar power if I live in a rainy, wooded, or dark area?
How can I check my property's solar feasibility?
What upkeep do my solar panels need, and how frequently do they need it?
How are traditional solar loans and PPAs different?
You might consider a PPA if you don’t want to be responsible for maintaining your panels and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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