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Energy Rebates in New Mexico
New Mexico residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in New Mexico, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs in New Mexico for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: New Mexico has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally at or below 200% of the federal poverty level.
New Mexico Energy Rebate Overview
New Mexico households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. New Mexico has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in New Mexico
New Mexico has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) is working with the U.S. Department of Energy on program design and deployment.
Income Eligibility for New Mexico Rebates
For New Mexico, 80% of Area Median Income varies by county. In Bernalillo County (Albuquerque), 80% AMI for a family of four is approximately $55,950. Rural counties may be lower.
For New Mexico, 150% of Area Median Income varies by county. In Bernalillo County (Albuquerque), 150% AMI for a family of four is approximately $104,900.
New Mexico State Tax Credits
New Mexico Solar Market Development Tax Credit
Amount: 10% of the cost of a solar system, up to $6,000 (originally $9,000 before 2024 adjustments)
Eligible items: Solar photovoltaic systems and solar thermal systems installed on residential property
New Mexico offers a personal income tax credit for the installation of solar energy systems. The credit can be carried forward for up to 10 years if it exceeds tax liability in a given year.
New Mexico Sustainable Building Tax Credit
Amount: Up to $5.00 per square foot for new residential construction meeting Build Green NM Silver or higher standards
Eligible items: New construction or major renovations meeting sustainable building standards
Available for homes built to sustainable building standards. Credit amount depends on the level of certification achieved.
New Mexico State Rebate Programs
Weatherization Assistance Program
Administered by: New Mexico Mortgage Finance Authority (MFA)
Amount: Average expenditure of approximately $7,000 per home
Eligible items: Insulation, air sealing, heating system repair or replacement, windows, doors
Federally funded program for income-qualifying households at or below 200% of federal poverty level. Administered through community action agencies and non-profit organizations.
Solar Net Metering in New Mexico
New Mexico has net metering rules for systems up to 80 MW. Residential customers receive full retail rate credit for excess generation. Credits carry forward month to month with an annual true-up, and any remaining credits are granted to the utility.
Utility Rebate Programs in New Mexico
New Mexico residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
PNM (Public Service Company of New Mexico)
PNM Residential Rebates
Amount: Up to $800 for heat pumps, $400 for insulation, $100 for smart thermostats
Eligible items: High-efficiency heat pumps, central air conditioners, insulation, duct sealing, smart thermostats, ENERGY STAR appliances
PNM Home Energy Checkup
Amount: Free online home energy assessment
Eligible items: Home energy evaluation identifying savings opportunities and available rebates
El Paso Electric (New Mexico)
Residential Energy Efficiency Rebates
Amount: Up to $600 for HVAC, $300 for insulation, $75 for smart thermostats
Eligible items: High-efficiency HVAC systems, insulation, duct sealing, smart thermostats
New Mexico Gas Company
Energy Efficiency Rebates
Amount: Up to $500 for high-efficiency furnaces, $300 for water heaters
Eligible items: High-efficiency natural gas furnaces, tankless water heaters, smart thermostats
Get Personalized New Mexico Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in New Mexico. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About New Mexico Rebates
What energy rebates are available in New Mexico?
With the federal 25C and 25D tax credits ended after 2025, New Mexico residents should look to state, utility and HOMES/HEAR programs. State-level programs include Weatherization Assistance Program.
Has New Mexico launched the HOMES and HEAR rebate programs?
New Mexico has launched the HEAR rebate program but not HOMES, according to the National Association of State Energy Officials (NASEO) tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The New Mexico Energy, Minerals and Natural Resources Department (EMNRD) is working with the U.S. Department of Energy on program design and deployment.
What are the income limits for energy rebates in New Mexico?
For New Mexico, 80% of Area Median Income varies by county. In Bernalillo County (Albuquerque), 80% AMI for a family of four is approximately $55,950. Rural counties may be lower. For New Mexico, 150% of Area Median Income varies by county. In Bernalillo County (Albuquerque), 150% AMI for a family of four is approximately $104,900.
Does New Mexico have net metering for solar panels?
New Mexico has net metering rules for systems up to 80 MW. Residential customers receive full retail rate credit for excess generation. Credits carry forward month to month with an annual true-up, and any remaining credits are granted to the utility.
How do I apply for energy rebates in New Mexico?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). For state programs, contact the New Mexico Energy, Minerals and Natural Resources Department (EMNRD). For utility rebates, check with your local utility provider directly.
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