Santa Fe, NM— The Energy Conservation and Management Division (ECMD) of the New Mexico Energy, Minerals & Natural Resources Department (EMNRD) has released a new guide to help homeowners navigate the complex landscape of residential solar photovoltaic (PV) system financing. The free online publication, titled A New Mexico Homeowner's Guide to Solar Financing: Leases, Loans and PPAs, will help homeowners make sound decisions and select the best financing option for their needs.
The guide describes three popular residential solar financing choices – leases, loans, and power purchase agreements (PPAs) – and explains the advantages and disadvantages of each, as well as how they compare to a direct cash purchase. It clarifies key solar financing terms and provides a list of questions homeowners should ask before deciding if and how to proceed with installing a solar system.
"This guide is meant to help homeowners who wish to learn more about financing options for solar PV systems," said Cabinet Secretary David Martin. "The number of New Mexicans installing solar on their homes is now the highest ever."
A much larger share of the public has explored installing a solar energy system as the cost of the technology has fallen. While the expanding solar market makes a residential solar system more affordable, the increasing number of vendors can make homeowners' choices more complicated.
"ECMD is working to provide consumer-friendly information for homeowners without access to upfront cash to buy a system outright," added ECMD Director Louise Martinez. "Doña Ana and Bernalillo Counties installed the majority of residential solar installations in 2014."
The full report is available on ECMD's website at http://www.emnrd.state.nm.us/ECMD/RenewableEnergy/documents/NMGuidetoSolarFinancing.pdf. Information on all of ECMD's programs is available at www.CleanEnergyNM.org.
The Energy Conservation and Management Division develops and implements effective clean energy programs — renewable energy, energy efficiency, alternative fuels, and safe transportation of radioactive waste — to promote economic growth, environmental sustainability, and wise stewardship of our natural resources while protecting public health and safety for New Mexico and its citizens.
ECMD prepared the guide with the Clean Energy States Alliance (CESA) and the U.S. Department of Energy SunShot Initiative. CESA is a national nonprofit coalition of public agencies and organizations working together to advance clean energy. The U.S. Department of Energy SunShot Initiative is a collaborative national effort that aggressively drives innovation to make solar energy fully cost-competitive with traditional energy sources before the end of the decade.