Renewable Energy - Solar

 

ECMD Contact: Mark Gaiser

(505) 476-3318

Mark.Gaiser@state.nm.us

 

New Mexico's Solar Tax Credit

 

New Mexico Residential Solar Data

 
PACE (Property Assessed Clean Energy) Bond Financing

Solar energy is a viable alternative for heat and electricity production. The Solar Market Development Tax Credit, established in 2006, created an income tax credit for homeowners, businesses and agricultural entities that install solar PV or solar heating systems. Since its inception, this valuable distributed solar program continues to prosper. ECMD's role in the tax credit process includes the certification of solar systems for quality assurance of equipment and installation. Up to $5 million in state government tax credit support is available annually through 2016. Other distributed solar initiatives are the Solar Gross Receipts Tax Exemption, "Solar-Ready Roofs" Act and a strengthened Solar Rights Act.

New Mexico has taken aggressive actions and adopted substantive policy measures to stimulate development of utility-scale concentrating solar power (CSP) projects throughout the state. Those initiatives, combined with New Mexico’s second-in-the-nation, world-class solar energy resource, have effectively positioned the state as a focal point for this rapidly emerging industry – both in terms of operating CSP facilities and CSP-related component manufacturing. Straddling the eastern and western transmission interconnects, New Mexico is ideally located to export CSP power to out-of-state markets, driven by other states' Renewable Portfolio Standards and the likelihood of the future need for carbon-neutral electric power generation.

The most economical applications of solar electricity are for homes remote from the utilities’ infrastructures, for both electricity and heating fuel. If a home is more than one-quarter mile from electric utility lines, a PV system with battery back-up (sized properly) will usually be less expensive on a first-cost basis than the utility company’s charges for a line extension. It will also usually be cost-effective to augment a propane heating system with a solar water heating system. Besides incentives that reduce solar capital costs, financing solar installations should be considered to pay for the system over time. Many households do not have the capital to pay up front the full cost of a solar energy system, yet they often have sufficient income for installment payments, including mortgage payments and utility bills. There may be a net gain in cash flow by going to a higher mortgage payment but lower utility bills due to utilizing solar technology.

 
Solar-related Announcements
State Purchasing Agreement for PV Systems:
The State of New Mexico has developed a statewide price agreement for PV systems. It is a multi-vendor award available to any governmental agency in New Mexico.
 

DOE Launches Online Resource to Help Local Governments Expand Use of Solar Energy
The U.S. Department of Energy announces the availability of a new online resource for local governments that assists community leaders and local stakeholders in building sustainable local solar markets. The online publication, Solar Powering Your Community: A Guide for Local Governments, provides local governments with proven best practices enabling them to drive economic development, support clean energy jobs, and reduce carbon emissions by building a robust local solar market.

IREC Releases 2009 Model Interconnection Procedures and Net Metering Rules Incorporating Best Practices

The Interstate Renewable Energy Council (IREC) released the 2009 updates for its rules and procedures for interconnecting and net metering distributed generation. IREC first developed its model net metering rules in 2003 and developed its model interconnection procedures in 2005.

 

Additional Information

 

Federal Tax Credits for Consumer Energy Efficiency

NM Solar Statutes

Types of Solar Systems

Concentrating Solar Power information

State Forestry
505-476-3325
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