SunPowerPeek

Michigan 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.

Michigan

3.6 hrs

9.5yr payback

$30,600

20yr savings

New Mexico

6.2 hrs

7.5yr payback

$36,800

20yr savings

Side-by-Side Comparison

MetricMichiganNew Mexico
Peak Sun Hours3.6 hrs6.2 hrs
Cost per Watt$3.20$2.80
6kW System Cost$19,200$16,800
Federal Tax Credit30%30%
State Tax CreditNone10%
State RebateNoneNone
Net MeteringFull Net MeteringFull Net Metering
Electricity Rate19.34¢/kWh15.34¢/kWh
Payback Period9.5 years7.5 years
20-Year Savings$30,600$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 Michigan or New Mexico?

New Mexico gets more sun (6.2 peak hours/day vs 3.6). 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 Michigan and New Mexico?

A 6kW system costs $19,200 in Michigan 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