New Mexico has Already Used Up its Solar Tax Credit Fund: Will This Influence the Ongoing Abundance of Solar Appointments?

Solar’s popularity within New Mexico has been soaring. But that surge could be starting to backfire. New Mexico’s Energy, Minerals and Natural Resources Department (EMNRD) announced a significant milestone that could have far-reaching implications for the solar market. Below, we discuss the news, and how it’s set to impact demand for solar appointments.

Quick Depletion of Solar Tax Credits

As of January 24, 2024, New Mexico had already issued more than $10 million worth of tax credit certificates for the 2023 tax year. The mass of applications was rapidly approaching the state law’s cap of $12 million in tax credits, even before the peak of tax season.

Good news, right? After all, it means that solar is more popular than ever within the state. But with limited tax credit funds available, that means not all those who installed solar may get to cash in.

The prospect of this was worrying at the time, but now it has come to fruition. EMNRD recently announced that the fund had reached its maximum. They are no longer accepting tax credit applications for installations made in 2023. Any solar customers who hadn’t yet submitted applications have officially missed the boat.

Instability Breeds Reluctance Among Solar Customers

EMNRD’s speedy fund exhaustion reveals a critical oversight in scaling the program to match consumer demand. For many homeowners, the promise of tax credits was a deciding factor in their investment, offering significant cost relief and making solar installations more financially accessible. Now, a large number of those residents are finding that their installations cost more than they had budgeted for.

This unreliability is bound to deter future customers. Without being able to trust that financial incentives will be accessible, homeowners will be more hesitant to commit to installations. Such a shift could pose challenges for solar contractors, who have enjoyed easier sales thanks to the promise of tax credits.

The Right Partnership Can Secure Qualified Solar Appointments

As customer attitudes shift, working with an agency that provides exclusive solar appointments becomes increasingly valuable. Grid Freedom, a leader in connecting homeowners with top solar contractors, demonstrates this advantage.

Their stringent screening process ensures that solar contractors are matched with informed homeowners who are not only interested in rooftop solar, but are ready to take action. Each resident has been interviewed in-depth, allowing Grid Freedom to hand-pick those who are fully prepared to go solar given the current market hurdles.

They offer a consistent pipeline of high-quality leads, sparing contractors the effort of finding and nurturing sales prospects, and ensuring they lose no time or expense to those that aren’t ready to become customers. It’s the stability that’s needed in a market where it’s growing harder to convert. Contractors can sign up for free, with no worry over binding contracts, subscriptions, or other fine-print catches.

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