New Mexico's Rebates and INcentives for Solar Energy Systems
Is New Mexico the 'Clean Energy State?' That's what Gov. Bill Richardson declared in 2004. Years later, his sunny state is trying its best to live up to the hype. That spells dividends for solar power. New Mexico's Renewable Portfolio Standard (RPS) is a good one, requiring 20% renewable energy by 2020, including at least 4% from solar.
As with any state, New Mexico has its own approach to promoting renewable energy. Given the desert climes, it's no wonder the state legislature approved last year a 6% tax credit for companies looking to build solar thermal electric plants. Between this and other corporate tax credits, New Mexico is looking to be a leader in concentrated solar power. Not that residential systems have been left in the New Mexico dust.
TAX CREDITS
Solar Market Development Tax Credit
- This personal tax credit is available to owners of PV, solar thermal space heating and cooling, and solar hot water systems. The credit is worth 30% (maximum $9,000) of the purchase and installation price of the system.
- In essence, New Mexico's tax credit is an extension of the federal tax credit, which is set to expire at the end of 2008. In actuality, the tax law stipulates that the state and federal tax credit combined cannot exceed 30%. However, the state law will remain in effect until the end of 2015 and effectively trumps the $2,000 cap on residential tax credits set by the federal government. Learn more from the Energy Conservation and Management Division.
Personal Sustainable Building Tax Credit
- Homes that have been certified as sustainable in New Mexico qualify for a personal tax credit that will vary based on the total square footage of the home. Any solar technology, from daylighting to solar electric systems, can help your home to qualify.
- Three types of certification are accepted: Build Green NM Gold, LEED-H Silver or higher, and Energy Star Manufactured Homes. Rates vary from $3 to $9 per square foot (first 2,000) depending on type and level of certification. For specific information see the New Mexico Energy, Minerals and Natural Resources Department (EMNRD).
NET METERING
- Solar thermal and PV electric systems up to 80 MW in size qualify for New Mexico's net metering program.
- It is a fairly common net metering program but for one unique characteristic. As usual, net excess generation (NEG) is carried over to the next billing month unless the customer produced more than $50 worth of NEG. In such a case the utility is required to write a check for the difference each month at the avoided-cost rate.
- The rules apply to any utility under the jurisdiction of New Mexico's Public Regulation Commission (PRC). Municipal utilities are exempt.
You may be wondering where New Mexico's rebate programs are. While there are no state funded rebate programs in place, the RPS and net metering laws have been enough incentive to cause PNM, New Mexico's largest utility, to offer a very generous utility rebate program. This program offers rebates in the form of renewable energy credits (RECs) at the rate of $.13/kWh. This may not seem like much, but when you consider that the going rate for electricity via PNM is only $.0935/kWh, it turns into quite an incentive!
PNM's rebate program and other utility incentives in the state show off the effectiveness of aggressive Renewable Portfolio Standards. Combined with a focused move toward concentrated solar power, an advantage somewhat unique to southwestern desert states that have lots of land and lots of sun, New Mexico is poised along with so many other states to achieve solar greatness.
USEFUL LINKS
New Mexico Energy, Minerals and Natural Resources Department
ENMRD: Energy Conservation and Management Division
State of New Mexico Taxation and Revenue
NM Public Regulation Commission
Build Green NM
Solar Power Rocks: New Mexico
DSIRE: New Mexico
PNM
