Alabama vs New Mexico Solar Comparison
New Mexico gets more sun (6.2 hrs/day) while New Mexico has the faster payback (7.5 years).New Mexico offers higher 20-year savings at $36,800.
Alabama
4.5 hrs
11.2yr payback
$28,400
20yr savings
New Mexico
6.2 hrs
7.5yr payback
$36,800
20yr savings
Side-by-Side Comparison
| Metric | Alabama | New Mexico |
|---|---|---|
| Peak Sun Hours | 4.5 hrs | 6.2 hrs |
| Cost per Watt | $2.95 | $2.80 |
| 6kW System Cost | $17,700 | $16,800 |
| Federal Tax Credit | 30% | 30% |
| State Tax Credit | None | 10% |
| State Rebate | None | None |
| Net Metering | Partial Net Metering | Full Net Metering |
| Electricity Rate | 14.87¢/kWh | 15.34¢/kWh |
| Payback Period | 11.2 years | 7.5 years |
| 20-Year Savings | $28,400 | $36,800 |
Verdict
New Mexico is the better state for solar ROI with $36,800 in 20-year savings and a 7.5-year payback period. New Mexico has more sun exposure at 6.2 hrs/day, making it ideal for maximum energy production. Both states qualify for the 30% federal solar tax credit.
Frequently Asked Questions
Is solar better in Alabama or New Mexico?
New Mexico gets more sun (6.2 peak hours/day vs 4.5). New Mexico has a faster payback (7.5 years) and New Mexico offers higher 20-year savings ($36,800).
How do solar costs compare between Alabama and New Mexico?
A 6kW system costs $17,700 in Alabama vs $16,800 in New Mexico before incentives. Both qualify for the 30% federal tax credit.
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Data verified March 2026 · Source: NREL, DSIRE, EIA