Most customer-owned programs offer incentives based only on the installation of generating systems. The performance-based program would increase the value of the customer's PV system by paying the customer for the environmental attributes of the solar energy generated – known as a renewable energy certificate (REC).
New Mexico’s largest electricity and natural gas provider is PNM. In PNM’s program, one REC equals one kWh. PNM will pay participants 13 cents per kWh for the environmental attributes of the total energy produced. Customers will also be able to benefit by participating in PNM's net metering program
PNM has received final approval from the New Mexico Public Regulation Commission (PRC) to launch a customer solar energy program and significantly increase the amount of solar generation in New Mexico.
PNM estimates a customer with a typical 1kilowatt AC (kW) photovoltaic (PV) system could receive about $3,650 during 12 years by participating in the program. A typical 1kW system costs between $9,000 and $12,000. Any customer with a 10 kW PV system or smaller will be eligible to participate.
Through the performance-based program, PNM expects to purchase the environmental attributes from about 18.7 million kilowatt hours (kWh) of customer-generated solar energy during a 12-year period, at a cost of about $2.8 million. PNM estimates generating the same amount of solar energy would require construction of a 1.2 megawatt solar facility that would occupy about five acres of land, at a cost of about $7.8 million.
The program is expected to begin in March.
"We are very excited that the PRC has approved this unique program, and we are eager to begin offering it to our customers," said Hugh Smith, PNM senior vice president of energy resources. "We believe this program is a good way to make more environmentally friendly renewable energy available to all of our customers."
