Given that Albuquerque, New Mexico, gets more than 300 days of sunshine per year, it makes sense why many homeowners choose to install solar panels on their roofs — even if Albuquerque’s most well-known fictional resident opted for a pizza instead.
Solar can reap a lot of potential benefits, mainly lower energy bills. “Interest in solar remains fairly steady within New Mexico, based on inquiries,” Christopher Fortson, Marketing Coordinator at Positive Energy Solar, told CNET. “Historically, we’ve seen a 20% annual increase year over year over the past decade.”
New Mexico is mostly powered by renewables. Wind power generated 38% of the state’s electricity in 2023, according to data from the US Energy Information Administration and utility-scale and small-scale solar installations combined generated roughly 8%.
Because Albuquerque is such an ideal environment for solar, consumers have numerous options. “Albuquerque’s excellent solar potential and incentives have led to a market flooded with companies offering solar services,” Fortson said. Here’s what solar-curious homeowners in Albuquerque should know before deciding on a solar company.
Best national solar panel companies in Albuquerque
As Albuquerque is uniquely suited for solar systems, there are a plethora of solar companies in the area to choose from. This includes a number of national solar panel companies with a presence in and around the city. Here are some of the better options, according to CNET’s best solar companies page.
Palmetto Solar
Best overall
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
Freedom Forever
Best for cash customers
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
Local solar panel installers in Albuquerque
National solar companies aren’t your only options for going solar. There are plenty of local installers to consider as well. It’s important to remember that solar panel companies and installers are not all the same. You may purchase your solar equipment and materials from a solar company and that company hires an installer to hook everything up. With that in mind, here are a couple of top local solar installers in Albuquerque.
There are plenty of local solar panel installers in Albuquerque worth considering, like Solar Works Energy and Positive Energy Solar.
Solar Works Energy is based in Albuquerque and has glowing reviews on several websites. It’s been in business for more than 30 years and offers coverage in states such as Colorado and Texas. The company does residential solar and battery installations.
Positive Energy Solar is a local, employee-owned solar company with a wide reach. It offers services in much of the surrounding area and has an office in Santa Fe, too. The company has been around for more than 25 years and prides itself on having a deep knowledge of local utilities and regulations. The company offers solar, battery and EV charging installations.
How to determine which solar company is best for me
There’s no magic formula to picking the best solar company. Every homeowner faces different circumstances in terms of finances, location, layout and other factors that impact how your solar project will end up coming together. The best thing to do is to try to find a company that will offer beginning-to-end service and has a strong reputation.
This is important because many solar companies “outsource project management and installation to other firms and don’t provide their own warranties,” Fortson said. “Unreliable solar companies often disappear as quickly as they appear, leaving clients high and dry.”
With that in mind, it’s vital to do research when selecting a solar company to work with. Here are a few tips to keep in mind:
- Have installers explain project and work deadlines.
- Ask questions about pricing and how system financing works. A reputable installer should be as transparent as possible.
- Your installer should have an understanding of the local permit requirements and the process for interconnecting your system with the local utility.
- Ask your installer about any federal, state or local solar incentives you might qualify for.
Cost of solar panels in Albuquerque
For most homeowners, costs are likely the driving factor in determining whether or not they ultimately purchase and install a solar system. While solar systems aren’t cheap, they have gotten cheaper in recent years. What you end up paying will boil down to several factors, like where you live, system size and the condition of your roof. As a ballpark figure, most homeowners will end up paying tens of thousands of dollars for a solar panel system.
Solar panels in New Mexico tend to cost a bit more per watt than the national average, according to data from FindEnergy. But again, there are many factors and variables in the mix. It’s difficult to discern solar pricing because each system is different.
Cost of solar panels in New Mexico
| Typical system size (kW) | Price per watt | Total installed cost (before incentives) | Total cost after 30% federal tax credit | |
| Albuquerque, NM | 5 | $3.93 | $19,650 | $13,755 |
| National average | 5 | $3.60 | $18,000 | $12,600 |
Albuquerque solar panel incentives and rebates
Las Vegas has no state or city-specific solar panel incentives or rebates, but homeowners can still take advantage of federal programs. Here’s a rundown:
Albuquerque residential solar incentives
| Program | Description |
|---|---|
| Federal residential clean energy credit | A 30% tax credit that can be claimed for a percentage of the cost of installing a solar system |
| Net metering | New Mexico has state-governed net metering, so solar panel owners can register for net metering programs to get credit on energy bills. |
| State-level tax credit | The New Solar Market Development Tax Credit allows owners to receive a 10% personal income tax credit, up to $6,000. |
| Does this state have community solar programs? | Yes, though it’s still under development. |
| Sales tax exemption | Solar systems are exempt from sales tax in New Mexico. |
| Property tax exemption | Solar panels are exempt from property tax assessments in New Mexico. |
| Sustainable Building Tax Credit | New Mexico also offers a tax credit to homeowners with qualifying residences that are considered sustainable and have certain renewable technology, including, but not limited to solar panels |
How solar friendly is New Mexico?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here’s how your state scored on CNET’s solar policy test.
New Mexico
Grade: B
Incentives available:
- Statewide solar tax credit
- Retail rate net metering (could be compensated at wholesale rate)
- Solar panel systems fully exempt from property taxes
- Solar panel systems fully exempt from sales tax
- Community solar subscriptions available for low-income households
Strongest scoring categories: New Mexico earned high marks in nearly every category. It is one of the few states to offer a statewide solar tax credit, allowing you to recoup 10% of the cost of your solar system, up to $6,000.
Categories to improve: The state has a statewide net metering policy, but utilities have a choice on how to compensate you for the energy you sell to the grid. If your system size is 10 kilowatts or less, your utility could choose to compensate you at the wholesale/avoided cost rate.
Installation factors to keep in mind
As mentioned, numerous factors can determine overall solar system costs. This is part of why it’s so hard to price a solar system: Each homeowner is looking at a different situation, from the way their roof is oriented to the climate specific to their neighborhood or town.
“Many homes in the area feature flat roofs, parapets and varying heights, each with specific building and zoning regulations for setbacks that must be adhered to for passing inspections,” Fortson said. “Properly designing solar systems for these types of homes can make the difference between passing and failing inspection, preventing significant delays and frustration.”
Here are some key things to keep in mind when planning out your solar system:
- Your roof: Before installing a system, ensure that your roof is in good condition and doesn’t need repairs. You’ll also want to consider its orientation and pitch and how much shade may be present during the day.
- Albuquerque peak sun hours:The area gets more than 300 days of sun per year, which is good for solar systems, and it also receives between 5 and 6 sun hours per day.
- HOA regulations:New Mexico has solar access laws, which prevent homeowners associations from barring solar installations. So, you don’t need to worry about an HOA casting shade on your solar plans.
- Homeowners insurance: It’s also a good idea to check with your homeowner’s insurance company to ensure your system will be covered or if installing a system will create any coverage or liability issues.
How to pay for solar panels in Albuquerque
While solar systems can be expensive, there are numerous ways that homeowners may be able to pay for them.
Cash
If you have the cash, paying upfront and in full for a solar system is cost-effective since you already have the money, and you won’t need to pay interest on a loan. However, many people may not have tens of thousands in liquid cash, meaning loans are the only option.
Solar loan
Solar loans are loans given out by solar companies — they may be called “financing” by a solar company. Like all loans, they’ll have fees and interest rates attached, and it’s a good idea to shop around if you plan on financing a solar system via a solar loan.
The federal solar tax credit can help you save a decent chunk of change on a solar panel system.
HELOC/Home equity loan
A HELOC is a line of credit secured against your home’s equity. You can also get a home equity loan, which is a more traditional loan with a lump sum payment that you pay back on a schedule. This can be another area where homeowners can tap into their credit and borrow to finance a solar system. Some may be uncomfortable using their home as collateral, but it’s an option that may have lower interest rates than a personal loan.
Personal loan
Personal loans are simply loans taken out at a bank or credit union. The terms will depend on your specific financial situation, and like solar loans, it’s probably a good idea to shop around for the best interest rate.
Solar lease
It’s possible to lease solar systems instead of buying them, effectively renting the panels to generate electricity. This can be an attractive option if you don’t want to borrow money or don’t have the cash to purchase a system outright. Upfront costs are low, but it’s important to remember that you won’t own the system and may not qualify for tax credits or get higher home values.
Power purchase agreement
Under a power purchase agreement, solar companies install but retain ownership of the solar system on your roof. The company then sells the generated electricity to the homeowner. Again, this may be a solid option if you don’t have the resources to purchase a system outright.
Frequently Asked Questions
What are the advantages of solar panels?
Solar panels allow homeowners to install an at-home energy generation system, feeding off sunlight — and there’s a lot of sunlight in New Mexico. This may help reduce energy bills, with the added benefit of being good for the environment and potentially increasing home values.
How long does it take to pay off solar panels?
There’s no direct answer to how long it takes to pay off solar panels, but in most cases, it’s likely many years. The payback period will depend on the specific type of financing a homeowner chooses, and the terms of their contract, but if you have all the information, it should be possible to calculate.
How long does it take to pay off solar panels?
There’s no direct answer to how long it takes to pay off solar panels, but in most cases, it’s likely many years. The payback period will depend on the specific type of financing a homeowner chooses, and the terms of their contract, but if you have all the information, it should be possible to calculate.
Are solar panels worth it in Albuquerque?
Solar panels are likely worth it for many homeowners in Albuquerque, especially since the area offers 300 days of sunshine and the state offers fairly generous tax credits and exemptions. But it’s important for the homeowner to weigh the pros and cons in terms of costs, location, layout, and other factors.
Does Albuquerque offer a solar tax credit?
The state of New Mexico has the New Solar Market Development Tax Credit, which allows homeowners to receive a 10% personal income tax credit, capped at $6,000, for their residential solar system.
