1.   Is the system for your residence, your business, or are you representing a government agency or not-for-profit? (Note: PV systems for rental units are considered commercial.)

2.   Who is your utility provider? (PNM, EPE, SPS, a Rural Electric Coop, or a municipally-owned utility)

3.   What is the desired size of your system? (0-10 kilowatts, 10-250 kilowatts, over 250 kilowatts)

Here are the basics of the financial incentives available:

1.   30% federal income tax credit: Homeowners and business owners can get the credit.

30% of your PV system’s installed cost will be returned to you in the form of a federal income tax credit. There is no limit on the total. All costs related to the installation of the system are eligible. Businesses can opt to take the income tax credit as a rebate instead.

2.   10% State of NM income tax credit: Homeowners and business owners can get the credits.

10% of your system’s cost will be returned to you in the form of a state income tax credit. The upper limit that can be received is $9000 per system. All costs related to the installation of the system are eligible.

3.   No Gross Receipts Tax: All systems qualify in New Mexico.

Your PV system is exempt from GRT.  This includes all equipment, labor and other costs related to the installation.  This benefit is available to everyone.

4.   Net Metering: All systems qualify, although programs differ slightly for each utility.

Your system will be interconnected with your utility’s grid.  When you are producing more that you are using at any given time, the electricity will flow into the grid, spinning your utility meter backward.  Typical net metering means that you are trading one kWh now from your PV system for one kWh later from the utility grid.  Later can mean later that day, later next year, or later 3 years from now.  If your system is over 10 kW in PNM territory, the net metering benefit will be different: .  Net metering is “trued-up” every month, so there are no rollover kWhs left over at the end of each month.

5.   Solar “REC” Income: These are currently available only to all PNM, EPE, and SPS customers.  In 2015, a REC ("Renewable Energy Credit") program will also be available to all Rural Electric Cooperative customers as well.  There is no state requirement for the availability of REC programs for customers of  municipally-owned utilities.

Here’s the typical definition of a solar REC:

A Renewable Energy Certificate (REC) can also be known as a Tradable Renewable Certificate (TRC) or "green tag".  It represents the environmental, social, and other positive attributes of power generated by renewable resources.  In New Mexico, one REC is created with each kWh of renewable electricity generation.  A REC shall only have one owner at any point in time. The REC will contain all its original environmental attributes.

If your PV system is under 10 kW and in PNM or EPE territory, the utility will purchase all the RECs generated by your system on a monthly basis.  This is known as the "Small PV Program".  You will be paid 13 cents for the REC value for every clean kWh that your PV system produces, whether you use the clean power or send it into the utility grid.  A separate meter (the REC meter) is installed between the PV system's output and the utility panel, in order to record the AC electricity generated before it's used, whether in your home or by the utility.

If you are in PNM territory and have a system over 10 kW, you will be compensated 15 cents per REC.