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. 

Utilities and Rural Electric Coops offer rebates now. There are also free programs for low-income New Mexico residents to increase the energy efficiency of their homes. 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.

    • Your electric panel or breaker box directs incoming electricity to different circuits in your house. An old house built before the mid-1960s may only be able to accommodate 60 Amps (A) of incoming current, and as you add more electric appliances, you will need at least 100A. Rewiring America recommends upgrading to 200A for whole home electrification if the extra cost is not prohibitive. Upgrading your panel may trigger an utility service upgrade including bringing your home up to code.
    • You might be able to avoid a panel upgrade, which can cost thousands of dollars, by installing a sub panel, utilizing the energy management software of a smart panel, or using a circuit sharing device. If your contractor doesn’t think this is possible, Electrify Now suggests getting a second opinion, especially if the work is too expensive even with the federal tax credits and rebates for panel upgrades, federal rebates for wiring upgrades, and state credits to make a building EV ready.
    • Several electric appliances require 240 volt (V) outlets, while you many only have 120V available. Some may require hardwiring 240V which involves a panel upgrade. These include EV chargers, induction stoves, and most heat pumps and water heaters.  If you have a 240 volt line already in use, there may be options for sharing that line.
    • According to Rewiring America these are the specs you should plan for:
      • Heat Pump Water Heater: 240V / 15A-30A.
      • Combo induction cooktop and oven: 240V / 40A-50A.
      • Heat pump dryer: 240V / 20A-30A.
      • Electric Vehicle Level 2 charger: 240V / 20A-40A
    • However, companies are coming out with 120V versions of heat pump water heaters, induction cooktops (1-2 element), clothes dryers and other appliances. Choosing between 120V or 240V is important to your planning process, so research these appliances to see if 120V versions will work for you.

What To Electrify or Upgrade


Meet the new generation of electric equipment that will keep you comfortable, healthy and save you money.
Click below on the squares below to learn more.

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.

    • If you are worried about the health impacts of  NOx and other pollutants in your kitchen even when your stove is off, an induction cooktop might be your first priority, followed by replacing a gas furnace and gas water heater.
    • Are you concerned about toxic wildfire smoke coming into your house through a swamp cooler? You might explore replacing your swamp cooler with a heat pump for both cooling and heating.
    • High heating bills?  Are you using electricity, propane, wood pellets or a wood stove for spacing heating? Switching to a heat pump as soon as possible will save you money.
    • If you heat with methane (natural) gas it may not make economic sense to switch to a heat pump especially if your furnace is new.  However, in central and northern New Mexico, an economical option is to install a less expensive heat pump and keep the gas furnace for backup on only the coldest days.
    • Are thinking about building an addition and don’t want to add a gas line? Consider adding a mini split heat pump.
    • Do you have a casita or small guest house that needs heating and cooling or another small heating/cool project? Consider adding mini-spit heat pump to the top of  your list.
    • Are you looking to reduce building costs? Leave out the gas line and go all electric.
Do you have methane (natural) gas heating, but have one room that is always too cold or hot? A mini-spit heat pump might do the trick and be a small project to test the electrification waters.
If you were thinking of replacing your swamp cooler with refrigerated air because of warming temperatures or allergies, now is a great time to explore a heat pump and get a great heating system as well.
Your first priority should be to drive electric (50% of your emissions), install an electric heat pump for heating and cooling (25%), install a heat pump water heater (10%), switch to induction cooking (5%), and install a heat pump clothes dryer (3%). And, especially while utilities are still decarbonizing, installing solar and storage to power your EV and appliances is also very important. Note: to really cut your emissions ride a bike instead of drive, cut back on flying and eat less meat.
Explore buying or leasing an electric vehicle and installing an electric charger  at your home, rental or condo.
Power your electrification with Solar and/or electric storageCheck out our pages on how to make the most of state and federal tax credits.
Is your income low to moderate? See if you qualify for these free weatherization and other services first. Then see if you qualify for these IRA rebates. If so, you might start to implement your electrification plan in early 2024 when these rebates become available as point-of-sale discounts at the time of purchase.
As a renter consider putting portable appliances on your list like a heat pump clothes dryer, induction hot plate or, in a year or so, a portable window heat pump. Look for community solar opportunities. You can also consider an EV and work with your landlord or electricity provider to get an EV charger.

 

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.

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