New Mexico – Another Top Ten State for Solar
When it comes to readily available sunlight, the State of New Mexico is a no-brainer. With a statewide average of 6.2 daily sun-peak hours, New Mexico is ripe for tapping its solar energy. Home Power magazine calls out New Mexico as one of its Top Ten Solar States, but acknowledges that it took the state a while to favorably align its policies and incentives. The magazine credits former Department of Energy Secretary and now state Governor Bill Richardson for much of the state’s success.
Similar to Colorado, New Mexico has established aggressive goals to fulfill its energy requirements with renewable energy. In 2007, the state legislature mandated that its public utilities must generate 20 percent of their electricity from renewable sources by 2020 with an interim goal of 15 percent by 2015.
To meet the state’s mandate, utility companies and industry associations have established favorable solar-focused initiatives for residents. For example, the New Mexico Zero-Energy Home program in concert with the state’s Built-Green New Mexico have instituted standards that include credits for photovoltaic installations.
Customers serviced by PNM, the state’s largest electricity and natural gas provider, can receive 13-cents per kilowatt-hour for renewable energy certificates (REC) as part of their monthly billing. Net metering also applies, so that each month a customer can receive credit toward their next month’s electric bill for any excess energy their PV system generates. If a customer nets over $20 worth of electricity in any given month, then PNM will directly pay the customer the balance.
Overall, New Mexico’s legislation created a tax credit of up to $9,000 (or a maximum of 30% recouped) for its residents and small businesses and farmers for solar photovoltaic or hot water systems installed by 2015. If a property owner installs both types of systems, then they can claim credit for each, again up to $18,000.
The state has also committed to expanding its photovoltaic manufacturing capacity. Last June (2007), Governor Richardson announced that the state would invest $10 million in Advent Solar a company that manufactures photovoltaic cells and modules. The move marks a commitment to grow “green collar jobs” within New Mexico. In January (2008), Governor Richardson welcomed Schott Solar, a German-based photovoltaic manufacturer, that has broken ground on a $100 million new facility near Albuquerque. According to Home Power, the state’s Renewable Energy Transmission Authority Board plans to devise a system that will allow New Mexico to sell its renewable energy generated power to other states.
Add comment March 31, 2008
