Scenario 1: System sized to meet 100% of electricity needs
At $7 to $9 per rated watt, a 2.59 kW PV system will cost between $18,130 and $23,310. The system is estimated to produce about 4,000 kWh per year.
30% federal tax credit ranges from $5,439 to $6,993
10% personal tax credit ranges from $1,813 to $2,331
Estimated REC payment: 4,000 kWh/yr. × $0.13/kWh × 12 yrs. = $ 6,240 total PNM REC payments
Estimated range of total incentives = $ 13,492 – $15,564
Estimated system cost, after incentives = $ 4,638 – $7,746
We can also consider the savings of the kWh offset at $0.09/kWh over 25 years (common module warranty period):
4,000 kWh/yr. × $0.09/kWh × 25 yrs. = $9,000 additional savings*
Scenario 2: Maximizes roof space; provides a surplus of electricity
A 3.0 kW system is estimated to cost between $21,000 and $27,000. This system may produce about 4,600 kWh per year.
30% federal tax credit ranges from $6,300 to $8,100
10% personal tax credit ranges from $2,100 to $2,700
Estimated REC payment: 4,600 kWh/yr. × $0.13/kWh × 12 yrs. = $7,176 total PNM REC payments
Estimated range of total incentives = $15,576 – $17,976
Estimated system cost, after incentives = $5,424 – $9,024
We can also consider the savings of the kWh offset at $0.09/kWh over 25 years (common module warranty period):
4,600 kWh/yr. × $0.09/kWh × 25 yrs. = $10,350 additional savings*
Scenario 3: Budget system
At $7 to $9 per watt, $10,000 will buy a 1.1 to 1.4 kW system, which may produce about 1,700 kWh to 2,160 kWh per year:
30% federal tax credit will be $3,000
10% personal tax credit will be $1,000
Estimated REC payment: 1,700 kWh/yr. × $0.13/kWh × 12 yrs. = $2,652 total PNM REC payments; or
2,160 kWh/yr. × $0.13/kWh × 12 yrs. = $3,370 total PNM REC payments
Estimated range of total incentives = $6,652 - $7,370
Estimated system cost, after incentives = $2,630 – $3,348
We can also consider the savings of the kWh offset at $0.09/kWh over 25 years (common module warranty period):
1,700 kWh/yr. × $0.09/kWh × 25 yrs. = $3,825 additional savings*
2,160 kWh/yr. × $0.09/kWh × 25 yrs. = $4,860 additional savings*
*Note the kWh offset values are conservative savings estimates that use New Mexico’s current average electricity rate of $0.09 over 25 years. Electricity rates are likely to continue their upward climb over this period.
