New Mexico residential solar energy incentives Solar market development tax credit
This incentive allows New Mexico to provide a 10% personal income tax credit of up to $9,000 for residents who purchase and install qualified photovoltaic and solar thermal systems. Approved systems include off-grid and grid-tied residential PV systems and active solar hot water or hot air systems Systems must be certified by the New Mexico Energy, Minerals, and Natural Resources Department. Solar pool or hot tub heaters are not eligible for this tax credit.
Credits may be carried forward for a maximum of ten taxable years. The New Mexico renewable energy production tax credit provides
a tax credit against the personal income tax. Companies that generate electricity from solar energy receive
a tax incentive that varies yearly with an annual average incentive
of about 2.7¢/kWh. The tax credit is applicable only to the first 200,000 megawatt-hours
of electricity in each taxable year.
Energy generators must have a capacity of at least 1 megawatt
and be installed before January 2018 to qualify
Systems must be in compliance with all applicable performance
and safety standards. This program allows El Paso Electric to purchase renewable energy
certificates from its customers who install photovoltaic systems
up to 10 kilowatts in capacity.
These renewable energy certificates are bought at a rate of $0.13
per kilowatt-hour for a 12 year period. REC purchase payments will appear as a credit on the customer's
monthly bill.
Any credit balance up to $30.00 will be applied to the following
month's bill. Once the rolling credit exceeds $30.00 a direct
payment will be made to the customer.
Eligible systems must be connected to the utility's grid and net-metered
and have a maximum system capacity of 10 kW AC.
Through the solar rewards program Xcel Energy purchases renewable
energy credits from its customers.
For renewable energy credits, Xcel will pay $0.20 per kilowatt-hour
for new photovoltaic systems between 0.5 kilowatt and 100 kilowatt
AC. Depending on the size of the system, customers will receive
payments for a various amount of years. Small systems will receive
payments for the first 14 years and medium systems will receive
payments for 10 years.
Qualifying PV systems must carry a five year warranty that covers
parts and labor from the manufacturer and installer.
Participating PV systems will be net-metered and must have a
separate production meter installed to ensure energy output. The
output will be measured each month and will be paid in the form
of a bill credit.
A check will be issued to the customer if the total credit
amount is $50 or over. This federal personal tax credit allows the taxpayer to claim
a credit of 30% of expenditures including labor costs and installation
of qualified residential solar-electric systems, solar water heating
systems or fuel cells. Small wind-energy systems and geothermal
heat pumps can also be accredited for.
Solar-electric systems and solar water heaters have a maximum
incentive of $2,000 if placed in service before 2009. There is no
maximum incentive for systems placed after 2008.
The excess amount of the federal tax credit may be carried forward
to the next taxable year if it exceeds tax liability.
This can be carried forward until 2016, but after that, it
is unknown if the unused credit will be able to be forwarded. This is a personal exemption of 100% of energy conservation subsidies
provided by public utilities.
The value of a purchase or installation of any energy conservation
measure by a customer such as solar water heat, solar space heat
or photovoltaics will not be included in the customer’s gross
income.
Customers of an electric utility company, who participate in
the utility’s energy conservation program, may receive a rate
reduction of electricity furnished or a nonrefundable credit against
the purchase price of the electricity on each monthly electric bill. This is a federal loan program where homeowners can use EEM (energy-efficient
mortgages) to finance renewable energy technologies in a home.
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