Net metering in New Mexico
Net metering in New Mexico is a set of state public policies that govern the relationship between solar customers (and customers with other types of renewable energy systems) and electric utility companies. Background Definition Net metering refers to the interconnection of a renewable energy system to the power grid. It allows consumers who have their own renewable generation power systems to connect to the power grid with an electric meter that spins both forwards and backwards, depending on whether the consumer is adding energy to the grid or using energy from the grid. At the end of the month, the customer's bill is based on the net amount of power that is drawn from the grid, minus the credits for excess power put into the grid. In New Mexico, customers who have systems that produce up to 80 MW of electricity are able to sign up for net metering. This is the highest power rating eligible for net metering in the United States. The three main utilities in New Mexico are PNM, Xcel Energy and El Paso Electric. Benefits of net metering One benefit of net metering is that power is never wasted. When someone uses an isolated system that uses batteries that become fully charged while the system is still generating power, that excess power is wasted. Customer-generators, businesses and industrial operations can qualify for net metering. Customer-generators have the added benefit of selling renewable energy credits (REC) back to their utility. (A customer-generator is a small producer—that is not an electric utility—of electricity which is net metered and connected to the electric grid. An example would be a homeowner who puts solar panels on his rooftop.) Utility-scale solar vs. residential solar A utility-scale solar facility is a large facility that generates solar power and moves that power into the electric grid. Almost every utility-scale solar facility has what is known as a power purchase agreement with the utility. The agreement guarantees a market for the utility-scale solar facility's energy for a fixed term of time. (Residential solar systems are not considered utility-scale). The size of a utility-scale facility can vary. For example, some utility-scale facilities provide only enough power per megawatt to power a few hundred average homes. Others offer a lot more energy. Factors that play into this are location, the type of technology used, and the availability of sunlight. For example, although not located in New Mexico, Recurrent Energies’ “Sunset Reservoir” project in San Francisco produces 5 megawatts of solar energy. It is built on top of enclosed reservoir in the middle of San Francisco. It is considered a utility-scale solar facility. How it works Net excess generation For customers with solar systems that can generate 10 kilowatts or less, the utility company has a choice in how they compensate that customer for net excess generation. The utility can give the customer a credit on their next bill equal to the utility's energy rate (the costs that the utility pays for its own electricity), or crediting