In New Mexico, a 4.4-kW system for an average home costs about $9,940 after incentives in 2026, saves about $1,174 in the first year and pays back in 7.7 years.
| Item | Amount |
|---|---|
| Solar, 4.4 kW × $2.51/W | $11,044 |
| Federal credit (0%) | $0 |
| State incentive | −$1,104 |
| Net cost | $9,940 |
| Scenario | Net cost | Year-1 savings | Payback | 25-yr net |
|---|---|---|---|---|
| State averages (above) | $9,940 | $1,174 | 7.7 yr | $30,941 |
| Rates rise 5.6%/yr (2020–25 pace) | $9,940 | $1,174 | 7.1 yr | $47,497 |
| Rates stay flat | $9,940 | $1,174 | 8.5 yr | $18,286 |
| Survey price $4.1/W (LBNL) | $16,236 | $1,174 | 11.8 yr | $24,644 |
| Add 13.5-kWh battery | $31,013 | $1,174 | 20.2 yr | $9,867 |
| Exports cut to 50% of retail | $6,958 | $589 | 10.5 yr | $13,112 |
Verdict: at average New Mexico numbers, solar is a strong investment in 2026 — payback takes 7.7 years, leaving you $30,941 ahead after 25 years. The main reasons: strong sun (the best yield of 51); 1:1 net metering, which credits every exported kWh at the full retail price; a state incentive worth about $1,104. Pay cash if you can: Berkeley Lab found loan-financed systems priced about $1.50/W above cash installs in 2025, which can add years to the payback.
Net metering and exports in New Mexico: Retail net metering up to 100% of usage; credits roll indefinitely.
Battery: a 13.5-kWh battery at the New Mexico average of $1,561/kWh adds $21,074 and saves almost nothing extra under 1:1 net metering — buy it for backup, not payback; payback becomes 20.2 years.
EnergySage's New Mexico page lists a 10.2-year payback. Its method is not fully published; ours uses EIA's Jan–Aug 2026 price, 1:1 net metering, 3%/yr rate growth and 0.5%/yr panel aging, with no federal credit.
The full method, material data and tips are on the main solar payback calculator page.