Can New Mexico’s New Tax Bill Inspire More People to Install Solar Panels?

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Due to the abundance of sunlight, New Mexico is the perfect state to install solar panels. 

There is a high expectation for locals living in the Land of Enchantment to fully embrace technologies to maximize solar energy, especially after the Senate Legislature signs Senate Bill 518 to provide residents of New Mexico solar tax credits

According to the bill, residents who will install solar energy will enjoy income tax credit for as much as 10% of the costs of having solar panel systems installed in their homes or businesses. The incentive will run for ten years, or until January 2029. But what exactly is the Senate Bill 518?

New Mexico Solar Tax Credits Bill Explained

State Sen. Mimi Stewart (D-17) sponsored the Senate Bill 518, together with the support of Gov. Michelle Lujan Grisham. According to the governor, New Mexico is one of the states in the country that has the highest potentials for solar energy. Grisham also believed that each resident of the state has the best opportunity to install solar on their properties because of the amount of sunlight that they enjoy annually. 

She also mentioned that the bill would not only provide an incentive to more solar energy all over the state, but it will also allow the state government to promote the alternative energy source further. Likewise, it can improve the renewable energy economy and develop more green-collar jobs in local solar installation and manufacturing.  

On the other hand, Sen. Stewart mentioned that the bill serves as a significant step in promoting renewable energy as well as in slowing down the effects of climate change. After the approval of the bill, it can work with Senate Bill 489 to set the standard for renewable energy goals and establish the Energy Transition Act. 

The bill also mentioned two types of solar installations that can apply for New Mexico solar tax credits eligibility. The first one is called the photovoltaic systems that can gather the energy of the sun and convert it into useable electricity. Meanwhile, the second solar installation is called the solar thermal system. This time, the power of the sun is used to generate heat for properties that opted to install it.  

How Can New Mexico Weather Help in Solar Energy?

According to the Albuquerque office of the National Weather Service, New Mexico is one of the states in the US with a high number of sunny days. The report mentioned that the state experiences an average of 3,500 hours of sunshine every year in Albuquerque. El Paso, Texas, also has a total of 3,800 hours of sunshine annually. It means that both parts of the state’s southern regions have more sun than the rest of the country. Because of this, the locals can take advantage of the sun’s power to use as an alternative source for energy.  

How Are Solar Systems Certified?

If the bill gets approval, the state will assign the New Mexico Energy, Minerals and Natural Resources Department to come up with guidelines and procedures to certify the solar thermal and photovoltaic systems that can qualify for the tax credits. They will devise some rules that will check the technical specifications, safety requirements, sun exposure, as well as standard codes and compliance for both systems. Then they will release the guidelines to the public. 

Once the incentive is approved, more New Mexico residents will realize the importance of installing solar panels in their properties. It will encourage more people to consider renewable energy sources. They will be able to save more money from the tax credits and save the environment as well. 

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