Solar Panel Cost in Hobbs, NM
Updated 2026 guide to solar panel prices, savings, and payback period in Hobbs.
Estimated Solar Savings
Solar Panel System Costs in Hobbs, NM
Below are estimated costs for different solar panel system sizes in Hobbs, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $11,000 | -$3,300 | $7,700 | 9,198 kWh |
| 6 kWMost Popular | $16,500 | -$4,950 | $11,550 | 13,797 kWh |
| 8 kW | $22,000 | -$6,600 | $15,400 | 18,396 kWh |
| 10 kW | $27,500 | -$8,250 | $19,250 | 22,995 kWh |
| 12 kW | $33,000 | -$9,900 | $23,100 | 27,594 kWh |
What Affects Solar Panel Cost in Hobbs?
The average cost of solar panels in Hobbs, NM is approximately $275/watt before incentives. For a typical 6kW residential system, that means a total cost of about $16,500 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $11,550.Hobbs homeowners typically see a payback period of 7 years and save an estimated $38,000 over 25 years.
Factors that affect your cost in Hobbs:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary within the Hobbs metro area
- Local permits: Permitting costs and requirements vary by municipality in Hobbs
- Incentives: State and local programs can significantly reduce your out-of-pocket cost
Solar Incentives Available in Hobbs
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
New Mexico homeowners benefit from the 30% federal ITC, with the state's abundant sunshine maximizing solar energy production.
State & Local Incentives
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
New Mexico requires utilities to offer net metering for residential solar systems. Customers receive credits at the full retail rate for excess generation.
AvailableSRECs
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.
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Top Solar Companies in Hobbs, NM
Solar Smart Living, LLC
Solar Panel Cost FAQ - Hobbs, NM
The average cost of solar panels in Hobbs is approximately $2.75 per watt before incentives. A typical 6kW residential system costs about $16,500 before the 30% federal tax credit, bringing the net cost to around $11,550.
The typical payback period for solar panels in Hobbs is approximately 7 years. After that, you'll enjoy free electricity for the remaining 15-20+ years of your system's life, saving an estimated $38,000 over 25 years.
Hobbs homeowners can take advantage of the 30% federal solar tax credit, which reduces your system cost by 30%. New Mexico also offers net metering, and various state-level incentive programs. Check our incentives page for the complete list.
Hobbs homeowners can save an estimated $38,000 over 25 years by going solar. Actual savings depend on your electricity usage, system size, roof orientation, and available incentives. With electricity rates averaging $0.13/kWh in New Mexico, solar provides significant long-term savings.
Solar Costs in Other New Mexico Cities
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