Colorado vs New Mexico Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of Colorado and New Mexico solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | CO · Colorado | NM · New Mexico |
|---|---|---|
| Avg Monthly Bill | $125 | $115 |
| Peak Sun Hours / Day | 5.4 | 6.2 ◆ |
| Avg $/Watt Installed | $2.85 | $2.85 |
| State Tax Credit | None | 10% / $6000 ◆ |
| Net Metering | retail | retail |
| SREC Market | No | No |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | Yes | No |
| Avg Payback (yrs) | 8.6 | 7.8 ◆ |
| Avg 25-Year Savings | $38,600 ◆ | $36,800 |
State Tax Credit Comparison
Colorado offers no state income tax credit. New Mexico offers a 10% credit (capped at $6,000).
Net Metering Policies
Colorado: retail rate net metering active. New Mexico: retail rate net metering active.
Net metering is often the most economically significant solar policy because it determines how excess production is valued. Retail-rate states (where you receive full retail price for exported energy) have substantially better solar economics than avoided-cost or no-net-metering states.
Average 25-Year Savings
Colorado: $38,600 over 25 years (avg payback 8.6 yrs). New Mexico: $36,800 over 25 years (avg payback 7.8 yrs).
Verdict: Which State Wins on Solar?
Colorado edges out New Mexico on lifetime savings primarily due to more favorable net metering rules.
Note: state averages mask significant within-state variation. Your specific utility, roof orientation, and household electricity profile drive your actual numbers — use the calculator to model your home directly.