Is Electrification Worth It in New Mexico?
New Mexico: 4,500 heating degree days in Albuquerque, 320 sunny days per year, and cheap gas.
Natural gas costs $0.80/therm—some of the cheapest in the nation. Electricity runs $0.13/kWh. You need moderate heating and AC for hot summers. PNM offers solar rebates, and New Mexico has a 10% solar tax credit (capped at $6,000).
The heat pump math is tough here because gas is so cheap. Unless you're replacing both systems or heating with propane, stick with gas for heating and get efficient AC for cooling. BUT—solar is a slam dunk. 320 sunny days + good net metering + state + federal incentives = 5-7 year payback. Do that instead.
What Do Energy Costs Look Like in New Mexico?
Here's the real data from EIA (Energy Information Administration). These are the rates that determine whether electrification makes financial sense.
Visual ROI Analysis
Payback Period Comparison
Lower is better • Shortest payback = fastest return on investment
Annual Savings Comparison
Higher is better • More annual savings = greater long-term benefit
Cumulative Net Savings Over Time
Point where line crosses $0 = payback achieved • Steeper line = faster savings growth
Which Upgrades Pay Off the Fastest?
I've broken down the economics for each major upgrade. Pay attention to the payback period—that's how long until savings equal your net cost.
Heat Pump HVAC
Solar Panels
Heat Pump Water Heater
EV Charger + Electric Vehicle
Should You Go All-In?
Here's what it costs to electrify everything at once—heat pump HVAC, solar panels, heat pump water heater, and EV charger. The upfront cost is high, but so are the savings.
Best ROI for New Mexico
Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.6 years and an ROI of 1460%.
0.0 years slower than average compared to the national average.
Ready to electrify your New Mexico home?
Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.