Best Solar Companies in Albuquerque, New Mexico

Solar panel costs in Albuquerque

A typical solar panel installation costs anywhere from $10,955 to $31,300 in New Mexico. Prices in Albuquerque are comparable, ranging from $10,815 to $30,900.

This doesn’t include an energy storage battery, which sometimes costs as much as the panels: $7,000 to $18,000. A battery lets you store excess energy generated during the day and use it when your panels aren’t producing, like at night or during outages. It’s worth considering if your area gets frequent blackouts or if you don’t opt into Albuquerque’s net metering program.

System size is the other major solar cost factor. The average Albuquerque household needs a system with a capacity of 7.61 kW (kilowatt) to fully offset their electricity costs. Depending on how much energy you and your family use, you might need a smaller or larger one.

Average total solar installation costs by system size in Albuquerque

How can I pay for solar panels?

Getting solar panels is like buying a car. Most people pay cash, finance or lease. Similar to leasing, a power purchase agreement (PPA) lets you get the benefits of solar without actually owning the equipment. For more information, check out the New Mexico Energy, Minerals and Natural Resources Department’s Guide to Solar Leases, Loans and Power Purchase Agreements.

• Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Solar leases are a good option if you have limited savings and don’t want to take on debt. A potential downside to leasing is that you won’t be eligible for the federal solar tax credit.

» SOLAR PANELS: Lease vs. buy

Is solar worth it in Albuquerque?

Solar panels are generally worth it in New Mexico if you like the idea of lowering your monthly utility bills. On average, Albuquerque homeowners with solar panels can avoid $53,960 in total utility costs over 25 years.

The main drawback is the high upfront cost of purchasing and installing the panels and equipment. Assuming an upfront purchase, it takes about 8.1 years to break even (when your savings with solar panels make up for the cost).

Considering New Mexico averages 6 to 7 peak sun hours each day, switching to solar is also worth considering for the environmental benefits. We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house. Project Sunroof is a reliable online solar savings estimator.

Potential roof problems

As a rule of thumb, if your roof is more than 10 years old, consider fixing it before going solar. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This is an expensive and frustrating process.

» SHOULD YOU: Replace your roof before going solar?

How to find a reputable solar company in Albuquerque

In our experience, the best solar companies in New Mexico have a few things in common: lots of experience, reliable equipment and transparent contracts. Here are some hiring tips.

• Check certifications: The New Mexico Regulation & Licensing Department can tell you if a potential solar contractor is legit. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• Read reviews: Avoid companies with recurring complaints about misleading sales tactics, equipment failures, billing issues and lack of communication.
• Compare costs: Get multiple solar quotes from different companies to make sure you’re getting the best deal.
• Ask questions: Do you need a solar storage battery, electric vehicle (EV) charger or critter guards? How does this affect overall pricing? What if your system needs maintenance? If you don’t understand something about the payment terms, warranty or ongoing services, ask for clarification.

Going solar in Bernalillo County

Optimal solar energy production is achieved with south-facing roofs. East or west-facing roofs can also be effective, especially with high-efficiency panels. Assessing potential shading from trees or nearby structures is crucial, as excessive shade can significantly reduce system performance.

» BEST STATES FOR SOLAR: New Mexico ranked 16th in 2024

Residential solar panel incentives in Albuquerque

The 30% federal solar investment tax credit (ITC) is the best incentive for most Albuquerque homeowners. It reduces your federal tax liability by 30% of how much it costs to install solar panels. You can combine the ITC with local solar incentives in New Mexico to maximize savings.

For instance, there is a sales tax deduction on solar equipment. New Mexico also has a solar property tax exemption. This means that — for tax purposes — the addition of a solar energy system won't cause an increase in your property's assessed value. Essentially, your property tax bill won't go up because your solar panels increase your home’s market value.