Texas vs New Mexico Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of Texas and New Mexico solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | TX · Texas | NM · New Mexico |
|---|---|---|
| Avg Monthly Bill | $185 | $115 |
| Peak Sun Hours / Day | 5.3 | 6.2 ◆ |
| Avg $/Watt Installed | $2.65 ◆ | $2.85 |
| State Tax Credit | None | 10% / $6000 ◆ |
| Net Metering | None | retail |
| SREC Market | No | No |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | No | No |
| Payback, pre-credit model (yrs) | 8.3 | 7.8 ◆ |
| 25-yr savings, pre-credit model | $38,600 ◆ | $36,800 |
Payback and 25-year savings were modeled while the federal residential credit applied. They are not a 2026 quote. The calculator uses $0 federal credit and state incentives only.
State Tax Credit Comparison
Texas offers no state income tax credit. New Mexico offers a 10% credit (capped at $6,000).
Net Metering Policies
Texas: no statewide net metering mandate. 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
Texas: $38,600 over 25 years (avg payback 8.3 yrs). New Mexico: $36,800 over 25 years (avg payback 7.8 yrs).
Verdict: Which State Wins on Solar?
Texas 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.