Note: Visit our New Mexico SREC page for specifics about any SREC potential.
New Mexico’s Renewable Portfolio Standard (RPS) requirements have a solar renewable energy target, but the current structure does not allow for a vibrant SREC market. The RPS requires that Investor Owned Utilities (IOUs) derive at least 20% of the state’s renewable energy from solar generation. While this is a step in the right direction, New Mexico has not put in place a Solar Alternative Compliance Payment (SACP) to drive a market price for SRECs. IOUs are required to purchase RECs to meet the RPS requirements, but if the requirements are not met within the year, the utilities have to make them up in the following year. Penalties can be implemented, but are in the form of retiring additional RECs within a designated generation category.
Although the current structure does not allow for monthly auctions, similar to what SRECTrade has created in other markets, New Mexico’s IOUs offer SREC purchase incentive programs. Below is an overview of their offerings.
PNM
Small PV Program: PNM will pay 13 cents/kWh ($130/SREC) for systems up to 10 kW. The system owner must enter into a 12 year agreement, but the agreement can be terminated upon 30 days written notice.
Large PV Program: PNM will pay 15 cents/kwh ($150/SREC) for systems greater than 10kW up to 1 MW. The system owner must enter into a 20 year agreement, but the agreement can be terminated upon 30 days written notice.
In addition to the SREC buy-back program, PNM offers a Net Metering program. This means that when your PV system produces more electricity in a given billing period than your facility uses, PNM will credit your account for the excess.
SPS (Xcel)
Solar*Rewards Small Program: SPS will pay 20 cents/kWh ($200/SREC) for systems between 0.5kW and 10kW. The system owner must enter into this agreement for a set term of 14 years.
Solar*Rewards Medium Program: SPS will pay 20 cents/kWh ($200/SREC) for systems between 10.1kW and 100kW. The system owner must enter into this agreement for a set term of 10 years.
Solar*Rewards Large Program: For systems greater than 100kW, SPS requests a proposal for REC buy-back. The contract term is negotiable for systems of this size.
In addition to the SREC buy-back program, SPS offers a Net Metering program. This means that when your PV system produces more electricity in a given billing period than your facility uses, SPS will credit your account for the excess.
El Paso Electric (EPE)
Small System Renewable Energy Certificate (REC) Purchase: systems 10kW and less are eligible to receive 12 cents/kWh ($120/SREC). System owners must enter into this agreement for a 12 year term.
Medium System Renewable Energy Certificate (REC) Purchase: systems between 10kW and 100kW are eligible to receive 15.5 cents/kWh ($155/SREC). System owners must enter into this agreement for a 12 year term.
Additionally, EPE offers a Net Metering program that will credit customer accounts for the excess energy produced by their solar panel systems.
SRECTrade will continue to watch the New Mexico market and keep participants up to date on the best methods for maximizing the value of their SRECs.