New Mexico Net Metering
| Program Type | Net Metering |
|---|---|
| Technologies | Photovoltaics and Solar Thermal |
| Amount | Up to 80 megawatts (MWs) |
| Required Documentation |
Interconnection agreement sent to customer’s utility for systems up to 10 kW. For larger systems, additional studies and paperwork are required. |
| Official Web Site | http://www.nmprc.state.nm.us/energy/solar.htm# |
New Mexico allows customer-generators producing up to 80 megawatts of electricity to sign up for net metering—the highest in the country as of August 2010. Under the rules customer-generators, businesses and industrial operations may qualify to net-meter. Systems up to 10 kilowatts (more than enough for most homes and small businesses) may sign up using only the interconnection agreement. When customer-generators net meter, they sell any renewable energy credits (RECs) to their utility.
Utilities set the rate at which they reimburse customer-generators for the electricity and generation credits. For net excess generation, net-metered customers must be credited at the utility’s avoided-cost rate for power produced. In addition, the credit either is carried forward to the next month’s bill, or if net excess generation exceeds $50 during a monthly period, the utility will pay the customer-generator for the power produced. Net metering customer-generators producing less than 10.1 kW of power do not need additional equipment other than an inverter capable of being tied to the grid to enter into net-metering arrangements with their utility. The rates paid to customer-generators are set by their utilities.
The three main utilities in the state, PNM, Xcel Energy and El Paso Electric, all offer performance-based incentives in addition to the net-metering payments. The performance-based incentives are purchased by the utilities in the form of RECs. The utilities use the credits to count toward their renewable energy portfolio.
As of August 2010:
• PNM offered customer-generators producing between 0.5 kW and 10 kW $0.13 per kW hour produced for RECs. System owners must enter into a 12 year power purchase agreement with PNM.
• Xcel offered customer-generators producing between 0.5 kW and 100 kW $0.20 per kW hour produced for RECs. Systems up to 10 kW enter into a power-purchase agreement for 14 years. Systems between 10.1 kW and 100 kW enter into 10 year power-purchase agreements. And existing systems operating after February 2009, are eligible to enter into an contract for $0.10 per kW hour.
• El Paso Electric offered customer-generators producing 10 kW or less $0.12 per kW hour produced for RECs with solar, less for wind. For systems up to 100 kW and installed after Jan. 1, 2010, the company offered $0.155 per kW hour, less for wind. All contracts are for a 12 year period.
Related Links: New Mexico Solar Installers
