As the year winds down, it’s the perfect time to consider how you can maximize your financial benefits with solar energy. In New Mexico, homeowners who go solar before year-end can unlock a variety of financial incentives, rebates, and long-term savings that make solar a smart and timely investment. At SunState Solar, we want to help you make the most of these opportunities before the year is over.
In this blog, we’ll explain the key financial reasons to install solar now, including tax incentives, utility savings through net metering, flexible financing and leasing options, and the long-term advantages of getting solar panels installed during the fall season.
1. Tax Incentives and Solar Rebates: Maximize Your Savings Before Year-End
One of the most compelling reasons to install solar before the end of the year is to take advantage of federal and state tax incentives. Both the federal solar tax credit and New Mexico’s solar energy rebates can significantly reduce the cost of your installation.
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) offers a substantial 30% tax credit on the cost of your solar installation. This means you can deduct 30% of your total solar system cost from your federal taxes. However, the credit is set to decrease in the coming years, so acting before the year-end ensures you lock in the maximum benefit.
For example, if your solar installation costs $20,000, you could save $6,000 in taxes with the ITC. But this benefit will decrease after 2024, so the sooner you install solar, the better the financial return.
New Mexico State Solar Rebates
In addition to the federal ITC, New Mexico offers its own incentives for homeowners who go solar. The New Mexico Solar Market Development Tax Credit provides up to $6,000 or 10% of the cost of a solar system, whichever is less. These rebates help further lower the upfront cost of your solar panels and make going solar in New Mexico more affordable than ever.
By combining both federal and state tax incentives, you could reduce the cost of your solar installation by up to 40%! To learn more about federal tax credits for homeowners, visit energy.gov.
2. Utility Savings and Net Metering: Earn Credits for Excess Energy Produced
Once your solar panels are installed, the financial benefits continue through utility savings and net metering programs. New Mexico homeowners can take advantage of net metering, which allows you to earn credits for the excess energy your solar system produces.
How Net Metering Works
Net metering is a key incentive for homeowners and businesses that install solar panels in New Mexico. It allows those with solar energy systems to send excess electricity they produce back to the grid and earn credits, which can offset their future energy consumption. If you produce more energy than you consume in a billing cycle, your credits roll over to the next month. This is especially helpful during seasons like summer when you might generate a lot of energy, which can then be used to offset your electricity usage in less sunny months, such as winter.
Lower Utility Bills
With net metering, many homeowners see significant reductions in their monthly utility bills. In some cases, you could even eliminate your electricity bill altogether. The credits you earn through net metering help make solar energy even more cost-effective, especially in a sunny state like New Mexico.
By installing solar before the year-end, you can start earning utility savings right away and take full advantage of the sun’s energy as you move into the next year.
3. Long-Term Financial Benefits of Installing Solar in the Fall
While the immediate benefits of tax incentives and utility savings are significant, the long-term financial benefits of installing solar in the fall make it an even smarter investment.
Maximizing Solar Energy Production
New Mexico enjoys abundant sunshine throughout the year, making it an ideal location for solar energy. By installing solar in the fall, you can ensure your system is fully operational by the time the sunnier months arrive. This means you’ll maximize your energy production and savings when the sun is at its strongest in the spring and summer.
Locking in Lower Energy Costs
Electricity rates tend to rise over time, but by installing solar now, you can lock in lower energy costs for the long term. Whether you finance your system with a loan or PPA, your solar payments will remain fixed, while traditional utility rates continue to increase. Over the life of your solar system, this can result in tens of thousands of dollars in savings.
Increasing Property Value
Solar panels can also increase the value of your home. Studies have shown that homes with solar systems sell for more than those without. By installing solar before the end of the year, you not only benefit from energy savings but also boost the resale value of your property.
Conclusion
Installing solar before year-end in New Mexico offers a host of financial benefits, from tax incentives and utility savings to flexible financing options and long-term value. By acting now, you can take advantage of federal and state tax credits, earn credits for excess energy produced through net metering, and start saving on your electricity bills right away.
At SunState Solar, we’re committed to helping homeowners make the most of these opportunities. Contact us today to learn more about how you can benefit from installing solar this fall and start enjoying the financial rewards of clean, renewable energy.