Best Solar Panel Installation Companies in Albuquerque, New Mexico [CNET]

Albuquerque is one of the sunniest areas in the country, making solar panels popular and effective.

Given that Albuquerque, New Mexico, gets more than 300 days of sunshine per year, it makes sense why many homeowners choose to install solar panels on their roofs — even if Albuquerque’s most well-known fictional resident opted for a pizza instead.

Solar can reap a lot of potential benefits, mainly lower energy bills. “Interest in solar remains fairly steady within New Mexico, based on inquiries,” Christopher Fortson, Marketing Coordinator at Positive Energy Solar, told CNET. “Historically, we’ve seen a 20% annual increase year over year over the past decade.”

New Mexico is mostly powered by renewables. Wind power generated 38% of the state’s electricity in 2023, according to data from the US Energy Information Administration and utility-scale and small-scale solar installations combined generated roughly 8%. 

Because Albuquerque is such an ideal environment for solar, consumers have numerous options. “Albuquerque’s excellent solar potential and incentives have led to a market flooded with companies offering solar services,” Fortson said. Here’s what solar-curious homeowners in Albuquerque should know before deciding on a solar company.

Best national solar panel companies in Albuquerque

As Albuquerque is uniquely suited for solar systems, there are a plethora of solar companies in the area to choose from. This includes a number of national solar panel companies with a presence in and around the city. Here are some of the better options, according to CNET’s best solar companies page. 

Local solar panel installers in Albuquerque

National solar companies aren’t your only options for going solar. There are plenty of local installers to consider as well. It’s important to remember that solar panel companies and installers are not all the same. You may purchase your solar equipment and materials from a solar company and that company hires an installer to hook everything up. With that in mind, here are a couple of top local solar installers in Albuquerque. 

How to determine which solar company is best for me

There’s no magic formula to picking the best solar company. Every homeowner faces different circumstances in terms of finances, location, layout and other factors that impact how your solar project will end up coming together. The best thing to do is to try to find a company that will offer beginning-to-end service and has a strong reputation. 
This is important because many solar companies “outsource project management and installation to other firms and don’t provide their own warranties,” Fortson said. “Unreliable solar companies often disappear as quickly as they appear, leaving clients high and dry.” 

With that in mind, it’s vital to do research when selecting a solar company to work with. Here are a few tips to keep in mind:

• Have installers explain project and work deadlines.
• Ask questions about pricing and how system financing works. A reputable installer should be as transparent as possible.
• Your installer should have an understanding of the local permit requirements and the process for interconnecting your system with the local utility.
• Ask your installer about any federal, state or local solar incentives you might qualify for.

Cost of solar panels in Albuquerque

For most homeowners, costs are likely the driving factor in determining whether or not they ultimately purchase and install a solar system. While solar systems aren’t cheap, they have gotten cheaper in recent years. What you end up paying will boil down to several factors, like where you live, system size and the condition of your roof. As a ballpark figure, most homeowners will end up paying tens of thousands of dollars for a solar panel system.

Solar panels in New Mexico tend to cost a bit more per watt than the national average, according to data from FindEnergy. But again, there are many factors and variables in the mix. It’s difficult to discern solar pricing because each system is different.

Cost of solar panels in New Mexico

	Typical system size (kW)	Price per watt	Total installed cost (before incentives)	Total cost after 30% federal tax credit
Albuquerque, NM	5	$3.93	$19,650	$13,755
National average	5	$3.60	$18,000	$12,600

Albuquerque solar panel incentives and rebates

Las Vegas has no state or city-specific solar panel incentives or rebates, but homeowners can still take advantage of federal programs. Here’s a rundown:

Albuquerque residential solar incentives

Program	Description
Federal residential clean energy credit	A 30% tax credit that can be claimed for a percentage of the cost of installing a solar system
Net metering	New Mexico has state-governed net metering, so solar panel owners can register for net metering programs to get credit on energy bills.
State-level tax credit	The New Solar Market Development Tax Credit allows owners to receive a 10% personal income tax credit, up to $6,000.
Does this state have community solar programs?	Yes, though it’s still under development.
Sales tax exemption	Solar systems are exempt from sales tax in New Mexico.
Property tax exemption	Solar panels are exempt from property tax assessments in New Mexico.
Sustainable Building Tax Credit	New Mexico also offers a tax credit to homeowners with qualifying residences that are considered sustainable and have certain renewable technology, including, but not limited to solar panels

How solar friendly is New Mexico?

CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident. 

Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade. 
Here’s how your state scored on CNET’s solar policy test.

New Mexico

Grade: B

Incentives available:

• Statewide solar tax credit
• Retail rate net metering (could be compensated at wholesale rate)
• Solar panel systems fully exempt from property taxes
• Solar panel systems fully exempt from sales tax
• Community solar subscriptions available for low-income households

Strongest scoring categories: New Mexico earned high marks in nearly every category. It is one of the few states to offer a statewide solar tax credit, allowing you to recoup 10% of the cost of your solar system, up to $6,000. 

Categories to improve: The state has a statewide net metering policy, but utilities have a choice on how to compensate you for the energy you sell to the grid. If your system size is 10 kilowatts or less, your utility could choose to compensate you at the wholesale/avoided cost rate.

Installation factors to keep in mind 

As mentioned, numerous factors can determine overall solar system costs. This is part of why it’s so hard to price a solar system: Each homeowner is looking at a different situation, from the way their roof is oriented to the climate specific to their neighborhood or town. 

“Many homes in the area feature flat roofs, parapets and varying heights, each with specific building and zoning regulations for setbacks that must be adhered to for passing inspections,” Fortson said. “Properly designing solar systems for these types of homes can make the difference between passing and failing inspection, preventing significant delays and frustration.”

Here are some key things to keep in mind when planning out your solar system:

• Your roof: Before installing a system, ensure that your roof is in good condition and doesn’t need repairs. You’ll also want to consider its orientation and pitch and how much shade may be present during the day. 
• Albuquerque peak sun hours:The area gets more than 300 days of sun per year, which is good for solar systems, and it also receives between 5 and 6 sun hours per day.
• HOA regulations:New Mexico has solar access laws, which prevent homeowners associations from barring solar installations. So, you don’t need to worry about an HOA casting shade on your solar plans.
• Homeowners insurance: It’s also a good idea to check with your homeowner’s insurance company to ensure your system will be covered or if installing a system will create any coverage or liability issues.

How to pay for solar panels in Albuquerque

While solar systems can be expensive, there are numerous ways that homeowners may be able to pay for them.

Cash

If you have the cash, paying upfront and in full for a solar system is cost-effective since you already have the money, and you won’t need to pay interest on a loan. However, many people may not have tens of thousands in liquid cash, meaning loans are the only option.

Solar loan

Solar loans are loans given out by solar companies — they may be called “financing” by a solar company. Like all loans, they’ll have fees and interest rates attached, and it’s a good idea to shop around if you plan on financing a solar system via a solar loan. 

HELOC/Home equity loan

A HELOC is a line of credit secured against your home’s equity. You can also get a home equity loan, which is a more traditional loan with a lump sum payment that you pay back on a schedule. This can be another area where homeowners can tap into their credit and borrow to finance a solar system. Some may be uncomfortable using their home as collateral, but it’s an option that may have lower interest rates than a personal loan.

Personal loan

Personal loans are simply loans taken out at a bank or credit union. The terms will depend on your specific financial situation, and like solar loans, it’s probably a good idea to shop around for the best interest rate.

Solar lease

It’s possible to lease solar systems instead of buying them, effectively renting the panels to generate electricity. This can be an attractive option if you don’t want to borrow money or don’t have the cash to purchase a system outright. Upfront costs are low, but it’s important to remember that you won’t own the system and may not qualify for tax credits or get higher home values. 

Power purchase agreement

Under a power purchase agreement, solar companies install but retain ownership of the solar system on your roof. The company then sells the generated electricity to the homeowner. Again, this may be a solid option if you don’t have the resources to purchase a system outright. 

Frequently Asked Questions