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Sales Tax Exemption

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The state also makes solar companies exempt from paying the gross receipts tax that businesses usually pay for their product. This means that solar panels are cheaper to buy in New Mexico than in many other states.

Maximize Your Benefits by Purchasing Rather Than Leasing

You can maximize the benefits of a solar system by choosing to purchase the system rather than leasing or entering into another type of third-party arrangement.  Since tax credits only apply to the owner of the solar system, those who choose to lease their system cannot benefit from these financial incentives.  By purchasing your system, most homeowners can reduce their electricity bill by 70% to 100% while leasers can pay monthly lease fees for many years. Additionally, many leases can further reduce savings with contracts that increase payments each year.

Homeowners should be aware, that if you sell your home with a leased solar system, your new buyer must qualify to take over the lease. This is shown to complicate the buying process and disqualify many potential buyers.

While it has been shown that solar panel systems add value to your home, when it is time to sell, the benefits do not necessarily extend to those who lease. Under FHA and Fannie Mae loans, the value that solar panels add can only be included in the appraised value of a home when the panels are owned.

Owning your own system will typically save you more money on utility bills in the long run, as compared to installing your system under a lease. That is likely why homes with a solar panel system are more attractive to buyers. A study performed by the National Renewable Energy Laboratory (NREL) concluded that homes with a solar power system not only sell faster (an estimate 20% faster) but also sell for a higher price than similar homes without solar panels.  However, homes with solar panels under a lease agreement may be less attractive to homebuyers who may be reluctant to assume the lease.

These financial incentives are your state’s way of helping you make the excellent choice of producing your own clean energy for your home. Are you considering making that choice? Contact Solar Pro today for a free personal estimate of how much you would save on solar.

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