Solar Incentives in Hobbs, NM
Complete guide to solar tax credits, rebates, and incentive programs available to Hobbs homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Hobbs homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Hobbs, NM.
New Mexico State Solar Incentives for Hobbs Homeowners
New Mexico Solar Market Development Tax Credit
Tax CreditNew Mexico offers a state tax credit for solar energy system installations on residential properties.
Property Tax Exemption
Property TaxSolar energy systems are exempt from property tax assessments in New Mexico.
Sustainable Building Tax Credit
Tax CreditAdditional tax credits available for solar as part of sustainable building projects.
Net Metering in Hobbs, NM
New Mexico requires utilities to offer net metering for residential solar systems. Customers receive credits at the full retail rate for excess generation.
Solar Renewable Energy Credits (SRECs) in Hobbs
New Mexico does not have a traditional SREC market. The state's Energy Transition Act sets aggressive renewable energy targets but does not include residential SRECs.
Tax Exemptions in Hobbs
How to Claim Solar Incentives in Hobbs
- Install your solar system: Work with a qualified Hobbs solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your New Mexico energy office or local Hobbs utility to apply for available incentives.
- Set up net metering: Contact your utility in Hobbs to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Hobbs, NM
Hobbs homeowners can take advantage of the 30% federal solar tax credit, plus 3 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Hobbs homeowners approximately $5.0k on a typical system. Combined with New Mexico state programs, total savings over 25 years can reach $38k or more.
New Mexico requires utilities to offer net metering for residential solar systems. Customers receive credits at the full retail rate for excess generation.
To claim the 30% federal ITC, Hobbs homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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