New Mexico vs Colorado Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of New Mexico and Colorado solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | NM · New Mexico | CO · Colorado |
|---|---|---|
| Avg Monthly Bill | $115 | $125 |
| Peak Sun Hours / Day | 6.2 ◆ | 5.4 |
| Avg $/Watt Installed | $2.85 | $2.85 |
| State Tax Credit | 10% / $6000 ◆ | None |
| Net Metering | retail | retail |
| SREC Market | No | No |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | No | Yes |
| Avg Payback (yrs) | 7.8 ◆ | 8.6 |
| Avg 25-Year Savings | $36,800 | $38,600 ◆ |
State Tax Credit Comparison
New Mexico offers a 10% state income tax credit (capped at $6,000). Colorado offers no state income tax credit.
Net Metering Policies
New Mexico: retail rate net metering active. Colorado: 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
New Mexico: $36,800 over 25 years (avg payback 7.8 yrs). Colorado: $38,600 over 25 years (avg payback 8.6 yrs).
Verdict: Which State Wins on Solar?
Colorado delivers stronger lifetime solar economics than New Mexico 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.