Does PNM have net metering?
Net metering is an important policy that helps you make the most of your solar energy system. New Mexico has net metering as part of its regulatory policies to encourage the adoption of solar. Out of the different utility companies operating in New Mexico will focus on one, in particular, the Public Service Company of NM, or PNM for short. We will discuss how net metering works in New Mexico and with PNM as your utility provider.
A quick guide to net metering
Net metering is a policy that allows you to earn extra credits for the energy your solar generates. With a grid-tied solar energy system, your system will be interconnected with the grid. This will allow you to pull power from the grid when your solar energy system isn’t generating power. When your system generates excess power, it will be sent to the grid and this energy will be counted as credits toward your billing at the end of the month. Your monthly billing will only count the net electricity you have drawn from the grid.
Net Metering in New Mexico
With the information listed from DSIRE, net metering is available to all qualifying facilities (a small power production facility) as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA). This is related to renewable energy systems, combined heat and power systems that go up to 80 megawatts (MW) in capacity. There is no statewide cap on the combined capacity of net-metered systems.
All utility companies are subjected to the Public Regulation Commission (PRC) jurisdiction and must offer net metering. However, municipal utilities which are not regulated by the PRC are exempt from this. Customers are required to be billed for the services offered. They will follow the rate structure and monthly charges that the customer would be assigned, even if the customer doesn’t have qualifying facilities.
For net-metered systems with a capacity of 10 kilowatts (kW) or less, it will be up to the utility company to choose how to compensate customers for their net excess generation (NEG). The utility company may credit the customer on the next bill for the excess kilowatt-hours (kWh) generated by:
- Crediting or paying the customer for the net excess generation supplied to the utility company at their energy rate (avoided cost rate).
- Crediting the customer for the kilowatt-hours kWh of net excess generation supplied to the utility company. The unused credits are then carried forward from month to month if the utility company chooses to credit the customer. If the customer leaves the utility company’s system. The unused credits for the excess kWh generated will be paid to the customer at the utility’s energy rate.
How does net metering work with PNM?
PNM offers 1 for 1 net metering for their grid-tied customers. This means that you will be paid the same rate for the excess solar you generate, as the amount you export to the grid. So this will be the same price as the energy that you would purchase when drawing from the grid.
Although in the case of PNM, their Time of Use pricing also applies. From this you will earn about $0.19 for any power you export during peak rate times, and about $0.06 for the power you export during non-peak times.
How can a solar energy system benefit you as a PNM customer?
There are many benefits to installing a solar energy system to go with neat metering. A solar energy system is an investment that can go a long way to saving on your electricity bills. With a solar energy system combined with a battery, you will be able to reap the benefits of solar and reduce your dependency on grid power. A solar energy system can also increase the value of your property if you’re looking to add more value to your home.
What solar incentives are available to you as a PNM customer?
If you’re looking to purchase a solar energy system for your home. Multiple incentives can lighten the cost of purchasing a system.
Federal Solar Tax Credit
The Federal Solar Tax Credit is a tax credit that can be claimed on your federal income taxes for a percentage of your solar photovoltaic (PV) system’s cost. The program provides a 26% tax credit for systems installed between 2020 – 2022, and 22% for systems installed in 2023. The expenses included are the solar panels or PV cells, labor costs, energy storage devices charged by the system, and sales taxes. There is no maximum amount that can be claimed.
Sustainable building tax credit
The New Mexico state government will provide a tax credit if you install a solar energy system as part of sustainable building efforts in your home. To qualify for this incentive, it needs certification from the U.S. Green Building Council for sustainability. The certification level you receive will determine your credit.
Property tax exemption for solar
With the solar adding value to your home, New Mexico adds to this benefit by exempting the added value from your property taxes. This is another great addition that allows you to further benefit from your solar energy installation without having to worry about another added cost.
New Mexico state solar tax credit
The state of New Mexico provides its solar tax credit. This credit can cut down your tax payments by $6,000 or 10% off your total solar energy expenses, whichever is the lower of the two. This applies to agricultural, commercial, and residential solar installations. You can also combine this tax credit with the Federal Solar Tax Credit (ITC). The ITC provides a 26% tax credit for systems installed between 2020 to 2022, and 22% for systems installed in 2023. This means that you can take advantage of both incentives for a large amount of tax credit.
PNM – Performance-Based Solar Program
PNM’s Performance Based Solar Program is a renewable energy credit (REC) purchase program. PNM will purchase RECs from customers who install photovoltaic (PV) and solar thermal electric systems up to 100 kilowatts (kW). REC payments will be based on your solar energy system’s total output. PNM will purchase RECs from you as part of their regular monthly billing process.
You will receive a monthly bill documenting the number of kilowatt-hours (kWh) produced by your system, the number of RECs purchased by PNM, the purchase price per REC, and the total price of RECs purchased during that billing period. REC purchase payments will then be applied as a credit to your electricity bill every month.
Get started with solar energy today
If you are looking to start your transition to solar energy, we are here to help. Our website also has a free online estimate tool that generates a personalized report for you from a simplified questionnaire. That report will contain the potential savings you can net, and the cost of a solar energy system installed on your property. You can also contact us directly via phone at +1 (844) 354-8387 or via email at info(at)goelitesolar.com for more information regarding solar energy for your property.