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Simplify your search
Switch to solar with a system built for you.
Average solar panel installation costs generally start between $13,945 and $27,890 in New Mexico.
How much you actually pay depends on several factors, including system size, whether you add a battery and the condition of your roof.
For many residents, the investment pays off over time. New Mexico homeowners with solar panels avoid $31,118 in total utility costs over 25 years on average.
But it doesn’t work out for everyone. This article explains average solar panel prices and the overall cost benefits to consider before making the switch to solar energy.
Going solar is like buying a car. You could pay cash, but most people finance or lease with minimal upfront costs.
Compare quotes from three or four different solar companies before making a decision.
Assuming an upfront purchase, it takes about 10.49 years to break even (when your savings with solar panels make up for the cost).
Before considering any incentives, a typical 7-kilowatt (kW) solar panel system costs $19,523 in New Mexico.
Prices in Albuquerque are comparable, ranging from $14,532 to $29,064. It costs between $13,795 and $27,590 to go solar in Las Cruces.
Average solar panel costs by system size in New Mexico
NOTE: The estimated costs above do not include the price of a solar storage battery. Adding a battery can double your total costs.
How much you pay to go solar largely depends on the size of your system, the equipment you want and the condition of your roof. Local permits and fees are a small part of your overall costs.
A typical New Mexico household needs about a 5.2 kW system, which costs $14,508 on average. Depending on your energy needs, you might need a smaller or larger system.
How to estimate what system size you need: First, look at your electric bill. It should say how many kilowatt-hours (kWh) you used last year. Then, divide that number by 1,200 to estimate your system size in kilowatts (kW).
For example, if you used 12,000 kWh of electricity last year, you would need a 10-kW system. If you used 10,800 kWh, you would need a 9-kW system.
Upgrade old appliances with more eco-friendly ones before you go solar. If you use less electricity, you need fewer solar panels, which makes the entire system more cost-effective.
» WATT’S THE DIFFERENCE? kW vs. kWh
The equipment — panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall solar costs (approximately 25% to 50%).
High-quality solar panels last 25 to 30 years, and your roof needs to last just as long.
ConsumerAffairs often hears from customers who were blindsided by expensive roof repairs discovered after their solar panels were already installed. This is a frustrating and expensive process — avoid it if you can.
To ensure a seamless and cost-effective solar journey, your roof must match the system’s longevity. Get your roof inspected, fixed or replaced before you go solar.
Labor, which includes planning, preparing and connecting your solar system to the grid, accounts for 10% to 30% of total costs. Solar equipment costs are going down, but labor costs are still relatively high in some parts of the state.
You might be tempted to install the system yourself. DIY solar panels are cheaper, but incorrectly installed systems can cause roof leaks, electrical hazards and voided warranties.
If you have an electric car, ask about EV charger options. Homeowners in rural parts of New Mexico should also consider critter guards to protect the panels.
» RELATED: How many solar panels do you need for your house?
Like a lot of residents, Douglas in Albuquerque went solar to lower his electric bills. Since making the switch, his monthly bills went from $300 or $400 to just $8 or $9.
Solar is often worth it for New Mexico homeowners looking for long-term savings on utility bills. Over 25 years, residents with solar panels avoid $31,118 in utility costs on average.
But it doesn’t work out for everyone. Dan in Albuquerque spent $26,000 on a system and regretted it. Dan said his equipment was installed in the wrong location. His solar company wasn’t helpful about fixing it, leaving him feeling ignored, misled and stuck. That’s why it’s so important to hire a reputable installer.
We suggest using the National Renewable Energy Laboratory (NREL) PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house. Then, weigh your installation costs against how much you can save over time.
Whether going solar is worth it depends on where you live in New Mexico. The state averages 6 to 7 peak sun hours daily. Lots of shading — like tall trees above your roof — will make your solar system less efficient. Since solar panels generate more power with more sunlight, this can affect the financial returns on your investment.
» STILL NOT SURE? Solar energy pros and cons
Financing options and leasing programs make solar more affordable for New Mexico homeowners. In an ideal scenario, your solar power system generates enough extra power to cancel out your monthly payment.
» SOLAR PANELS: Lease vs. buy
Most installers set the price according to the system’s wattage. Similar to “cost per square foot” when buying a house, “cost per watt” allows you to compare the relative value of a solar panel system. It shows you the per-dollar price of your system’s energy production potential.
Get quotes from at least three to four different solar companies in New Mexico. Make sure the estimated price includes all the equipment you want, labor, permits and grid hookup. Watch for hidden fees for system monitoring or maintenance service charges.
According to our latest research, the average cost per watt is $2.79 in New Mexico.
Cost per watt and total solar panel system costs in New Mexico
The federal solar tax credit is set to expire at the end of 2025, much earlier than previously scheduled. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.
Local solar incentives in New Mexico still make solar more financially attractive for homes and businesses. You might also be able to save money through manufacturers’ rebates.
Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. In New Mexico, compensation is up to the electric companies.
Central New Mexico Electric Cooperative, Public Service Company of New Mexico and El Paso Electric set the rate they pay you for your home-generated solar energy. You need to apply for interconnection with your utility provider to participate.
We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in New Mexico. Read our guides to solar companies in Albuquerque and the solar companies in Las Cruces for more information.
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We’re not aware of a totally free solar option in New Mexico. Unfortunately, scams that promise free solar panels can end up costing people quite a bit of money. However, you can lease solar equipment to reduce your upfront costs.
The difference comes down to efficiency and materials: monocrystalline panels are made from pure, single silicon crystals, whereas polycrystalline panels are made from various silicon fragments melted together. Both are types of photovoltaic (PV) solar panels.
No, solar panels have relatively low maintenance costs. If you clean the solar panels yourself, the only maintenance cost will be the water used to hose them down. Hiring a professional to clean your solar panels typically costs between $100 and $350.
Solar panels only generate electricity when the sun is shining. A solar battery stores the extra energy your panels produce during the day so you can use it at night or during a power outage.
Without a battery, that unused energy goes to the grid, and you’ll still depend on utility power after dark.
Installing solar panels can significantly increase a home’s value. According to a Zillow study, homes with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets seeing higher boosts.
Home solar system costs typically range from $10,000 to $30,000 or higher, depending on factors such as system size, local labor rates and available incentives.
The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in New Mexico and other states.
Solar costs vs. savings: New Mexico and nearby state
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