Electrify New Mexico
Whether you own or rent, have one project or want to transform an entire house, this website will guide your path to an energy efficient, climate friendly, cost-effective and healthy place to live.
Electrify Everything
Video presentation and tour of this website
Electric appliances for cooking our food, heating our homes and water, drying our clothes and transporting us have made remarkable advances. They offer superior efficiency, precision, comfort, and health benefits at the same or lower cost as gas appliances.
And because electricity generation grows cleaner every day, switching to electric is better for the climate too.
Our largest carbon emissions come from our gas cars (50%), home heating (25%) and water heating (10%). With clean electricity + electrification of buildings & vehicles, together we could eliminate 80% of US energy-related emissions!
Meet some of our Colorado neighbors who have already electrified!
Photo source: Joe Wachunas
We are still building and modifying our website. If you find any errors, typos, suggestions or have any questions please send an email to stefiwebsite@yahoo.com.
Disclaimer: We are not tax professionals. Please contact the Internal Revenue Service or your tax adviser before you make any decisions regarding tax credits described in this website.
What To Know Before You Start
The Inflation Reduction Act (IRA) offers consumers, companies and contractors a once-in-a-generation opportunity to go electric at a substantial discount. Combined with other incentives and depending on your income level, installing green appliances could cost you next to nothing.
But navigating the incentives and understanding the technologies, new to many of us, are not easy. Plus a lack of qualified installers and on-the-shelf equipment could delay your project. Moreover, getting an energy analysis of your home and fixing leaks first will save you money on purchasing heating and cooling equipment.
So start planning now before an emergency like a busted water heater commits you to a choice you regret.
Understanding Incentives. There are two ways to save: rebates discount the price of products and tax credits lower your tax bill. If you plan to make the most of these, they will influence what you electrify and when.
But big rebates from an IRA program (up to $14,000 per household for appliances) will not be available until early 2024. To see if you will be eligible for these low- and moderate-income rebates use this calculator (Español). If you qualify, you may want to wait to buy. These rebates will be offered at the time of purchase. Total rebate funds are limited so do your research now! Another IRA program not out yet is Whole-House Rebate Home Owner Managing Energy Savings (HOMES), which offers rebates on equipment for houses that reduce total energy consumption. Contractors will also be eligible for rebates through the IRA and HOMES Rebate programs.
The State of New Mexico has income and business tax credits available now including for very low-income homeowners. Certificates signifying you qualify for the tax credit are given out on a first-come, first served basis. Annual caps mean you should apply for a certificate as soon as your project is complete and as early in the year as possible.
State tax credits require that your equipment is installed by certified electricians and plumbers and that they be inspected by a local building code authority. Equipment must meet specific technical requirements.
Federal IRA tax credits are available now, but optimizing them takes planning.
-
- Read tax credit rules carefully. For example, as explained below, electrification may require an electric panel upgrade. The part of the Title 26 US Code that gives this credit is called (25C). It offers 30% of the cost an electric panel upgrade. It can only be claimed if the work is carried out in conjunction with another 25C project (like a heat pump or heat pump water heater). It is capped at $600. However, there is also an uncapped (25D) 30% panel upgrade tax credit if it is done in conjunction with rooftop solar. You cannot claim both tax credits.
- Converting to electric all at once can be expensive. The IRA runs for 10 years. Research now. Schedule replacements as old appliances wear out or fail.
- Contractors may also claim IRA tax credits.
Understanding your home’s electrical system. Adding more electric appliances may require upgrading your electric panel, or breaker box, to accommodate more current. Some appliances may also require upgrading wiring for 240 volt outlets. Anticipating these and preparing your residence for all possible upgrades at once will save money in electrician visits (see how these upgrades are planned early in this electrification schedule for example) . However, there may be ways to avoid these upgrades, which can run into the thousands.
Where To Start
1. To see what is possible, take a look at these five case studies from Rewiring America that illustrate how people at different income levels and house/apartment sizes might map out electrification projects.
2. Take yourself on a tour of your residence.
-
- Most houses leak energy. Fixing high-heat-loss windows, leaky doors, or inadequate insulation can save you lots of money in equipment and heating and cooling bills. An Energy Audit and Weatherization should be your first first steps. Write this at the top of a list.
- Make a list of your appliances and their ages (how to find an appliance’s age; typical appliances’ lifespans). When might your appliances need replacing? Make a replacement timeline.
- Panel/Wiring Upgrades. Read about your home’s electric system in the What to Know Before You Start section above. Write “electric panel/wiring upgrade” near the top of your list if you think you will need these. Also write “240V” by the appliances that might need a 240V outlet or write “120V” if you’ve already decided to use a 120V version or want to discuss this with a contractor.
3. What are your top reasons to electrify? Here are some examples. On your timeline, highlight the changes that mean the most to you.
4. What financial incentives are you eligible for? Do you qualify for low- to moderate- income IRA rebates that come out in late 2023/2024? These can really cut the costs of appliances like heat pumps and electric upgrades, so you might have to wait for those on your timeline if you qualify. Remember you are limited to $14,000 in electrification rebates. Explore our webpages for other New Mexico incentives.
5. Timeline in hand, you are ready to put your plan together with Rewiring America’s planning guide.
- Full Guide including electrical requirements for appliances.
- Detailed checklist for homeowners and Landlords from the guide.
- Checklist for Renters from the guide.
Resources
Rewiring America:
LoveElectric: Ready to Make a Change? Colorado-based website filled with info and real world examples of heat pumps, heat pump water heaters and cooking.
Electrify Now Oregon-based website includes information, webinars, real case studies on heat pumps, induction stoves, all electric homes, renewable electricity, and EVs. Estimates how much CO2 is avoided by taking action.
Carbon Switch Comprehensive Guides on water heaters, lighting, heating and cooling, insulation and stoves.
Northeast Energy Efficiency Partnership Air Source Heat Pump Installer and Consumer Resources – Buying guide, installation guide and information about heat pumps in cold climates.
Internal Revenue Service Credits and Deductions Under the Inflation Reduction Act includes information for individuals and businesses on everything from EVs to Solar and Wind Facilities.
New Mexicans who have Electrified!
Coming soon! Want to share your story? Email us at stefiwebsite@yahoo.com