Community Solar:

In 2021, New Mexico legalized community solar facilities and the New Mexico Public Regulation Commission (PRC) developed rules which allow customers of a qualifying utility the option of accessing solar energy produced by a community solar facility (SB89). In 2023, the PRC approved increasing the cap on the state’s community solar program from 200 MW to 300 MW and implemented measures to streamline participation for low-income households.

Tax Credit:

The Solar Market Development Income Tax Credit (NMSA 7-2-18.31) provides a 10% tax credit to taxpayers who install distributed solar photovoltaic and/or solar thermal generation on residential and agricultural properties, capped at $6,000 per property per taxable year. For PV systems with at least 15 kilowatt-hours (kWh) of storage capacity, the credit increases to 20%, up to $12,000 per property per taxable year. See other opportunities for tax credits here.