New Mexico
Background
With strong leadership and extraordinary advocacy on the part of the Coalition for Clean Affordable Energy, New Mexico is developing a good local solar market. Financial incentives are pieced together from a couple of different sources. PNM, the state's largest utility, has developed a solar production incentive as part of the its RPS compliance plan. PNM will pay solar system owners $.13/kWh for solar renewable energy credits, significantly increasing the payback on solar systems. In February of 2006, the legislature passed a 30% personal tax credit for solar systems. And in March of 2007, the state passed legislation to double its RPS. Vote Solar participated in the rulemaking process to implement the expanded RPS, and was successful in getting a 20% solar (expected to be primarily central station) and 3% distributed generation carve-out. See Final Rule here (pdf), and all filings here.
On January 11, 2007, the Public Regulatory Commission approved a groundbreaking net metering standard: the state now allows net metering for facilities up to 80 MW. That's huge. Here's the Order (pdf), and here's the Rule (pdf).
Policy Needs
Interconnection standards are key; the state is currently going through a workshop process to develop them. We also need a larger incentive program to support solar in the state.
Next Steps
After the Legislature doubled the state's RPS in March of 2007, the NM Public Regulatory Commission initiated rulemaking to develop implementing rules. We were successful in getting a solar and distributed generation diversification requirement. However, PNM, the state's largest utility, recently challenged the rulemaking and filed a request for rehearing. We are opposing the motion--check back for progress.
Updated 9/17/07