Benefits of Solar Energy
Solar energy offers several advantages that will enhance your home for years to come.
- Better energy independence: Photovoltaic systems with battery storage work through blackouts and emergencies, and you won't have to rely on the power grid for your safety and well-being.
- Lower energy bills: Producing some or all of your own electricity will save you money on your electric bills long-term.
- Reduced carbon footprint: Adopting solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Santa Fe Homeowners?
New Mexico homeowners who go solar could qualify for reimbursements, rebates, tax credits and special financing. Here are just a few of the area's incentive offerings.
Incentive Type: Property Tax Incentive
Incentive Type: Sales Tax IncentiveWebsite: emnrd.state.nm.us
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 CreditWebsite: ecowatch.com
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 Santa Fe
The more thorough your company investigation is, the better your solar installation will ultimately function. Here are some crucial criteria to bear in mind while shopping for a solar installer.
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 assigned to your project will have at least two years of experience installing solar equipment. Solar companies can also pursue certifications from standards organizations and trade groups. The top ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Santa Fe
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options. 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 components, such as battery storage and electric vehicle (EV) chargers, will raise your overall costs. However, they might make your solar system more efficient and convenient to use. Not all solar providers include these additional features, so look for a provider that installs them if it's crucial for you.
You can expect to pay about $19,650 on average for a five-kilowatt solar energy system in Santa Fe. Check the table in this section to get an idea of what amount Santa Fe solar companies might quote for your specific system.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Santa Fe
Solar providers offer multiple different financing options to increase your savings and lower your costs. Though some providers offer unique payment plans, the most common are cash payments, solar loans, power purchase agreements (PPAs) and solar leases. Though it involves a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the second most effective 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 allow you to rent your panels for a fixed monthly rate, while PPAs let you pay only for the energy you use, much like 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. Look for contractors 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 Santa Fe.
A 26% federal tax credit applies to recently-purchased solar equipment purchased through 2032. Extra incentives may be available through local governments, usually in the form of rebates and special financing programs.
|Solar System Capacity
|Estimated Payback period
Ready to Get a Quote on Your Solar Project?
Frequently Asked Questions About Solar in Santa Fe
How much money could I save by going solar in Santa Fe?
Is solar energy easily accessible in Santa Fe?
Will solar panels improve my Santa Fe home price?
How long does it take to pay back a solar loan in Santa Fe?
Could I still use solar power if I live in a wooded, rainy, or dark area?
How do I care for my new solar system?
How does "net metering" work, and do I need to participate?
How many estimates should I get before making a final solar company decision?
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.