Incentives / FAQ's

The Select Solar Advantage

Select Solar is focused on designing and installing high quality, durable solar electric systems for residential, commercial and industrial customers. Our professional team, extensive construction experience and focus on solar electric systems allow us to provide you with excellent service for your renewable energy project.

Financial Incentives - Start Saving with Solar Now

The financial incentives available for solar today are substantial, and there is no time like like the present to take advantage of them and begin saving money on your electric bill by installing a clean energy producing solar electric system. The incentives today are quite generous, with Federal tax incentives, New Mexico State tax incentives, New Mexico sales tax exemption, and Utility company programs to purchase your excess clean power.

Federal Tax Credit

The current Federal Tax Credit is available to homeowners and businesses. It will cover 30% of the installed solar system cost, without limit of system size or cost. 

The form for claiming the federal tax credit is simple to complete; Select Solar can guide you to the correct form; consult your tax professional for complete details.

New Mexico State Tax Credit

The State Tax Credit is available to homeowners and businesses. It will cover 10% of the installed solar system cost, with a limit of $9000.00. 

The system has to be inspected and certified by the state to qualify for the tax credit; Select Solar takes care of the paperwork involved for system certification, you just sign it and send it in. The State office will assign your system a certification number that you use for claiming the tax credit on your tax return.

New Mexico Sales Tax Exemption

Solar system equipment and installation cost are Exempt from state sales tax. A non-taxable form is signed by the seller and purchaser stating that the transaction was strictly for a solar system. This is another 6 - 8% savings when compared with other home investment purchases.

Property Tax Exemption

This allows you to benefit from the increased property value that you will experience from installing solar at your site without the penalty of taxation.

Commercial Buildings Tax Advantages

Businesses have the option of receiving a rebate or "Grant" in lieu of the 30% Federal Tax Credit. The application process is easy and the payment is made soon after project completion.

PNM REC program

The newly revised PNM Renewable Energy Certificates (REC) program offers excellent returns for your solar energy production.

The REC benefit is decreasing as more systems are installed, so sign up soon!

Residential & Commercial, 10KW or smaller PV system size - 

PNM is currently offering a 8-year contract at .04 cents per Kilowatt/Hour produced by your solar electric system.

Residential & Commercial, 10 - 100KW system size - 

PNM is currently offering a 8-year contract at .05 cents per Kilowatt/Hour produced by your solar electric system.

The price PNM will pay you for renewable energy certificates - called "RECs" - generated by your solar energy system is determined when your application is considered complete by PNM.

Residential Solar Financing 

There are many financing options for purchasing of a solar energy system.
We have partnered with ADMIRAL'S BANK to offer you funding that is available upfront before the project starts.

  No equity or appraisal required 

Secured loans up to $25,000 

Unsecured loans up to $7,500 

No contractor fees 

Quick pre-qualification and final approvals 

Online application system available 

Dedicated Account Executive to service your loan 

100% up-front funding (funds are disbursed before the project is started) 

No pre-payment penalties with flexible terms up to 20 years 

Tax deductible interest (consult your tax advisor) 

With no money down and up to $40,000 loan amount, you can be enjoying the benefits of a solar system quickly and without a large initial investment.

Local sources of green project funding are the Permaculture Credit Union in Santa Fe and Los Alamos National Bank eco-friendly loan program.

More information on local sourcing of funding for renewable energy projects may be found by contacting New Mexico Solar Energy Association.

Commercial Solar Financing

Our clients typically choose one of two options.

1) Finance on their own and take advantage of the appropriate Federal grants or Federal Investment Tax Credits, SRECs, state grants and accelerated depreciation.

2) Power Purchase Agreements (PPA) where the PPA owner will install a solar system on the client's roof or ground for a long term with an agreed upon price for the power and with no capital cost to the client. The PPA provider provides the project financing and secures the value of grants, tax credits and other incentives. For large systems over 250KW, we have established relationships and experience with industry leading PPA providers to help customers finance, install and operate solar power plants at no upfront cost to the client. 

Power Purchase Agreements (PPA's)

A Power Purchase Agreement, or PPA, is a legal contract between an electricity producer (the PPA) and a power purchaser (client) where the purchaser buys electricity from the generator for a stipulated term at an established rate. In a typical PPA, the PPA provider secures project financing, maintains the system and sells the electricity to the electricity producer. There is no capital cost for the client. A PPA can play a key role in financing a solar electricity project as it enables customers to take advantage of low-cost electricity with long-term pricing stability, a smaller carbon footprint, and a greener public image. Our PPA partners provide all necessary maintenance, monitoring, service and repairs so the customer can concentrate on their core business and not on becoming a solar energy expert. In addition, the PPA provider as the owner, provides the required insurance on the system. Many PPAs will provide the client with an option to buy the system after a given time frame.

Pre-Tax Investment

Yet another financial benefit of investing in solar energy is that it is a pre-tax investment. 

Conventional investment instruments are taxed when you make a gain on you investment, whether it is a stock, real estate, etc.

An investment in solar pays your investment back and then has financial gains through eliminating electricity costs and in some areas through direct payments from the utility company; all of which are non-taxable gains.

This advantage can put a solar investment rate of return up to 30% ahead of conventional investments.

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Here are some common questions about solar system installations:

How much space does the system need?

Our smallest systems only require around 100 square feet to install. Larger systems will require more space and this will be determined during your Solar Site survey. 

Do the solar panels need to be mounted on my roof?

Panels are often mounted on the roof, but can also be mounted on the ground. If there is room available at the property, ground-mounted or pole-mounted arrays are preferable in the long term as there are no additional costs when it comes time to re-roof your property.

Do the panels need to face south?

South is best, but panels installed facing east or west can still provide a great deal of power for you. The best way to determine what makes sense for you is to have one of our solar professionals come out to your property. Contact us today to schedule a Solar Site survey.Back to top

How large of a system do I need to power my home?

Each home or application is different, and the amount of electricity you use is very dependent upon your lifestyle, how your home was built, and your appliances. When you contact us for a Solar Site survey we will help you identify how much electricity you use and tailor a system that makes sense for your particular needs.
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How much power does the system produce?

Systems come in many sizes, and we will work with you to determine the correct size system for your specific needs. Depending on your energy goals and budget, the system can produce 100% of your electricity needs if desired.
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How long will the system last?

The solar panels have a 25-year power warranty from the manufacturer but they can last up to 40 or more years. What else have you ever purchased for your home with that kind of warranty? The other major components (inverters, mounting system) generally have a 10 year manufacturer's warranty.

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What happens when the utility has a power outage?

For safety reasons, and UL requirements, inverters for grid-tied systems do not generate power when the utility is out, even if it is sunny. If you live in an area with utility power but have frequent power outages, we have grid-tied systems with battery backup for critical loads.
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Do I need batteries with the system?

Only if you are off-grid or need back-up power for critical loads. Most grid-tied systems do not have batteries. Back to top

What is Net Metering?

Net Metering allows you to send any power that you are not currently using back into the grid. A separate REC meter is installed and meters all solar PV power produced so you get credit for every kilowatt hour generated by your system. Exact provisions vary from different utility companies, but the effect is to allow you to generate excess power during the day, and use it at night.
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How does the solar power get stored?

In a grid-tied system power is not stored. It is either used immediately in the house, or sent back to the utility grid. 

In a grid-tied system with battery backup, a small battery bank stores energy for your critical loads during a power outage. 

In an off-grid system, all of the solar energy is sent through a charge controller, stored in a battery bank for use as needed. An inverter changes the DC battery power into pure sine-wave AC power.Back to top

Do I need to install a new roof before the solar panels are installed?

Generally, if you think you will get another 5 years out of your roof go ahead and install the solar system. If you think you will need to replace your roof within the next 5 years you may want to install a new roof before your install your new solar system. Solar panels will last many years and after the panels are in place, they will greatly reduce the wear on your roof by blocking ultraviolet rays. Most installations do not require a new roof prior to PV installation.
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What happens if the panels are shaded?

PV panels should be installed in areas where they get significant direct sunlight every day. Even small amounts of shade can significantly reduce the output of your system. Our designs and installations also seek to minimize the impact of any shade issues through selection of the proper equipment and good engineering. Part of our service during a Solar Site survey is to provide a full shading analysis for your location which will help us determine the best placement free of shade.

DC to DC power optimizers are another good way to mitigate the effects of shade and other system losses in a solar PV system. We will incorporate these into designs when applicable.          Back to top

Do I need to clean the panels periodically?

Most of our customers do not clean their panels. However, you will see a performance gain from cleaning the panels if you are willing to invest the time and effort. If necessary, usually a wet cloth or gentle water stream are sufficient for cleaning. Do not spray water under high-pressure, on PV wiring connections or on the panels when they are very hot. Do not use chemical cleaning agents. 
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Does solar power work for commercial buildings?

Yes, solar works very well for commercial buildings. We install solar on office buildings, retail buildings, schools, and government facilities, airports - anywhere electricity is used. For commercial solar applications, please visit our Grid-tied Commercial solar systems section. Back to top

What are the incentives for buying a solar electric system?

Clean solar generated electricity for your home or business

Stable cost of electricity

There are many financial and tax incentives for going solar

Fight climate change

For your children's future

Create secure electricity supply

Political statement for a renewable energy future

Strongly dislike buying electricity from the utility

Feeling of empowerment

Higher resale value for my property

Solar energy just makes sense

It just feels good to do your part

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If I sell my property, what effect does PV have on the sale price?

Energy conservation and renewable generation adds value to a home. Surveys have shown that for every $1,000.00 saved per year, $20,000.00 is added to a home's value. Solar energy can be one of the best home improvement investments you make.
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How long does will it take to install my PV system?

Typical residential systems take from 2 to 5 days to install while commercial systems may take several weeks to over a month to install. 

Systems mounted on the ground are more complex as ditching and pole foundation construction are required, and may take longer. Most of the installation work is done outside of your home, so there is little disturbance to you.

The total time from application to your Utility company and County entities to when they complete their final inspections and we energize the solar system varies. The application process usually takes several weeks to obtain approval for the project. If an engineer review and stamp are required it may add a few days.

 After that the installation takes place when all system materials are available. 

The final inspection from NMCID is next. The inspection department will inform the Utility that the system has been inspected and the REC meter will be installed by the Utility field crew at that point.

The Utility will then schedule and perform and anti-islanding test and the system can be energized for use at that point.

REC credits start from the moment the system is turned on.

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Our rates for SELECT SOLAR service work:
$90.00 per hour for Journeyman Electrcian.
$65.00 per hour for Apprentice Electrician.
Travel time for one-way distance to project, including vehicle surcharge.

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