Your New Mexico Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most New Mexico solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. In 2024, New Mexico AG Raúl Torrez sued New Mexico Solar Group. Big solar companies that worked in New Mexico have gone bankrupt. Titan Solar Power is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
There is a number on your solar proposal that your salesperson calculated using New Mexico's sunshine - and nothing else.
New Mexico gets more sun than almost any state in the country. That fact alone is why solar sales teams target your neighborhoods so hard. The pitch sounds perfect: abundant sun, rising electricity costs, and savings that practically sell themselves.
But sunshine doesn't pay your contract. And for New Mexico homeowners, the savings math your salesperson scribbled on that kitchen table napkin left out some expensive details.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door and made those promises? They might not exist anymore.
The New Mexico Attorney General Is Watching Solar
In 2024, New Mexico AG Raúl Torrez sued New Mexico Solar Group. The court is in Santa Fe. Customers had paid for solar systems that were never installed. The company closed on August 11, 2023. The AG also announced open investigations into two other companies: Meraki Solar and Titan Solar. An earlier case: Vivint Solar paid the New Mexico AG $1.95 million over deceptive business practices.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on New Mexico homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your New Mexico solar contract
Here's what most New Mexico homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they mention that New Mexico's extreme summer heat actually reduces your panel output? Panels don't perform at peak in high temperatures. If your savings projection was built on sunshine alone without accounting for heat-related losses, those numbers were wrong from day one.
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in New Mexico when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under New Mexico law
New Mexico gives you real legal protections. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. If a solar salesperson came to your home and you signed the contract there, federal law (the FTC Cooling-Off Rule) gives you 3 business days to cancel with no penalty. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement. How do you know if you were told? Pull out your contract. If there's no cancellation notice on the front page, that's your answer.
The New Mexico Unfair Practices Act. NMSA 57-12-2 prohibits unfair and deceptive trade practices. If your solar company made misleading claims about savings, performance, or contract terms, this statute applies. This isn't a technicality - it's a consumer protection law written for exactly this situation.
PNM and El Paso Electric rate structures. Your savings projections were built around your utility's rates. If PNM or El Paso Electric rates haven't increased at the pace your salesperson assumed, the savings math doesn't hold up. Did your salesperson show you their rate assumptions? If not, the savings picture they painted was built on a guess.
Extreme heat and panel degradation. New Mexico's summer heat reduces panel efficiency. Your salesperson used sunshine as a selling point - but high irradiance and high temperatures are two different things. If your savings projection didn't account for heat-related performance losses, the numbers are higher than what your system actually delivers.
Hidden dealer fees are a red flag in solar loans. Solar finance companies add dealer fees of 15 to 30 percent. They roll these fees into your loan balance. They don't list them as a separate charge. The federal Truth in Lending Act says every fee must be shown in writing. A hidden or mislabeled fee can be a legal violation. You've been paying interest on a fee nobody explained to you.
What you can do right now
You don't have to figure this out alone. Here are the first steps for New Mexico homeowners.
File a complaint with the New Mexico Attorney General. Go to https://nmdoj.gov/get-help/submit-a-complaint/. Or call (505) 490-4060. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in New Mexico. Find Out What It's Actually Costing You.
New Mexico homeowners have rights under both federal and state consumer protection law - and the sunshine your salesperson used to sell you deserves a second look against your actual savings. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=new-mexico)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in New Mexico, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in New Mexico?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under N.M.S.A. §57-13-1 et seq. and the federal FTC Cooling-Off Rule. New Mexico also has New Mexico Unfair Practices Act (N.M.S.A. §57-12-1 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the New Mexico Attorney General. Go to https://nmdoj.gov/get-help/submit-a-complaint/ or call (505) 490-4060. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has New Mexico sued any solar companies?
Yes. In 2024, New Mexico AG Raúl Torrez sued New Mexico Solar Group. The court is in Santa Fe. Customers had paid for solar systems that were never installed. The company closed on August 11, 2023. The AG also announced open investigations into two other companies: Meraki Solar and Titan Solar. An earlier case: Vivint Solar paid the New Mexico AG $1.95 million over deceptive business practices.
How does the escalator clause affect my New Mexico solar contract?
Most New Mexico solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. New Mexico's average electricity rate is about 14.7 cents per kilowatt-hour in early 2026. That's close to the national average of 17.45 cents. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my New Mexico solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my New Mexico solar contract?
Did the salesperson come to your home? Then New Mexico law gives you 3 business days to cancel. That's under N.M.S.A. §57-13-1 et seq. and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a New Mexico solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in New Mexico?
Go to the New Mexico Attorney General's website at https://nmdoj.gov/get-help/submit-a-complaint/. Or call (505) 490-4060. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.