Is solar worth it in New Mexico?
A 7.0 kW rooftop system near Albuquerque produces about 12,453 kWh a year. Priced against the 10 residential tariffs currently on file in New Mexico, payback runs from 10 years on the best of them to 54 on the worst.
Why the tariff matters more than the panels
Two households in New Mexico with identical roofs and identical systems can see paybacks 10 and 54 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 43% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in New Mexico
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 10 of 10 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Public Service Co of NM | 1B (Residential Service Time-Of-Use) | Time-of-use | $988–$2,053 | 10–21y |
| Public Service Co of NM | 1A (Residential Service) | Time-of-use + tiered | $1,010–$1,968 | 11–21y |
| El Paso Electric Co | Residential Service Low Income | Time-of-use + tiered | $727–$1,606 | 13–29y |
| Public Service Co of NM | 1A (Residential Whole House Electric Vehicle Rate Pilot) | Time-of-use + tiered | $762–$1,572 | 13–28y |
| El Paso Electric Co | Residential Service | Time-of-use + tiered | $681–$1,504 | 14–31y |
| El Paso Electric Co | Residential Service - TOU (Alternative) | Time-of-use | $723–$1,492 | 14–29y |
| Southwestern Public Service Co | Residential Heating Service TOU - Rate 39 | Time-of-use | $830–$1,405 | 15–25y |
| Southwestern Public Service Co | R (Residential Service) - Rate 1 | Time-of-use | $560–$1,245 | 17–38y |
| Southwestern Public Service Co | Residential Heating Service - Rate 39 | Time-of-use | $484–$1,063 | 20–43y |
| El Paso Electric Co (New Mexico) | RS - TOD | Time-of-use | $386–$855 | 25–54y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Albuquerque on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within New Mexico itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.