Benefits of Solar Energy
Solar energy offers multiple benefits. Here are some highlights.
- Better energy independence: Solar energy can keep your home functioning through blackouts and emergencies. You can use your solar energy anytime with optional battery backup.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Lowered energy bills: Solar panels let you generate your own energy to power your home, reducing your periodic electricity costs. You can eliminate your bills completely if you go off-grid.
What Solar Incentives Are Available to South Valley Homeowners?
New Mexico homeowners who go solar could qualify for rebates, reimbursements, special financing and tax credits. 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 South Valley
Choosing a company is the first step toward a well-oiled and valuable solar system. Make your choice based on the following vital factors.
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 panels. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar sector's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in South Valley
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power. Polycrystalline panels provide a lower price point but produce less power. 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.
If you'd like to charge an electric car or use your solar power in dark weather, you can pay extra for add-ons. By selecting the right components, you can make your system more efficient and user-friendly. Not all solar providers include these additional features, so look for a provider that sells them if it's important for you.
Most South Valley homeowners opt for solar systems rated for five kilowatts (kW) of electrical capacity. These systems run about $19,650 to set up, considering both materials and labor. You can find more specific cost information in the table.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in South Valley
Choosing the correct financing option will impact your overall solar system cost and possible savings. Common payment options include leases, cash payments, loans, and power purchase agreements. 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 incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Much like an auto or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases let you 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. Ask each provider you're vetting about the financing options it offers. A representative can help you determine the most suitable option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in South Valley.
The IRS allows you to claim a 26% federal tax credit on total system costs, so long as you purchase it before 2032. City and state governments and utilities might also offer their own financing programs, incentives, and rebates that could save you more money.
|Solar System Capacity
|Estimated Payback period
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Frequently Asked Questions About Solar in South Valley
How much money could I save by going solar in South Valley?
How widespread is solar energy in South Valley?
Will a solar PV system raise my South Valley home price?
What can I do to assess my home's solar viability?
How many years will an average solar system last?
What is the average payback period for South Valley solar panels?
How does "net metering" work, and do I need to participate?
Some states or energy providers require you to join net metering when purchasing your solar system, while others give you a choice. Either way, once you sign up, you'll receive a bill credit or check for your excess generation at a wholesale or retail rate.
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