In addition to the Federal and State programs, PNM customers are compensated through the Net Metering and REC programs.  Both these programs are approved by the NM Public Regulatory Commission (PRC) to fulfill their Renewable Energy Portfolio requirement (RPS).  Senate Bill 418 states that for Investor-Owned Utilities, renewable sources shall provide 5% of their electricity by 2006, 10% by 2011, 15% by 2015 and 20% by 2020. 

 
Net Metering:
Small Array Net Metering Program (systems 10 kW ac and smaller)
Each kWh of solar electricity generated is either consumed on site at the time of its
production for “free”, or is sent onto the utility grid, spinning the utility meter backwards.  Every kWh sent onto the grid will be compensated with one kWh from the grid, at any later time or date.
                Large Array Net Metering Program (systems between 10.1 kW ac and 2 MW)
Each kWh of solar electricity generated is either consumed on site at the time of its
production for “free”, or is sent onto the utility grid, spinning the utility meter backwards.  Every kWh sent onto the grid will be compensated with one kWh from the grid, provided that it is used within the monthly billing cycle in which it was produced.

Renewable Energy Certificate (REC) Program
Small Array REC Program (systems 10 kW ac and smaller)
1 REC is awarded for every 1 kWh of electricity produced onsite by renewables.  PNM will purchase all of your RECs on a monthly basis, at the price of 13 cents each.  The Small Array REC program contract with PNM is for 12 years.  A separate REC meter will be installed on your solar system to calculate the ac electricity production of your solar system.  The REC income from PNM will first be used to pay any balance due on the “regular” or “net-metered” portion of your bill.  Any monies due after your account is settled will be sent to you as a check.
               
Large Array REC Program (systems between 10.1 kW ac and 1 MW)
1 REC is awarded for every 1 kWh of electricity produced onsite by renewables.  PNM will purchase all of your RECs on a monthly basis, at the price of 15 cents each, for all the electricity that you also use.  Over production will be compensated for at the “avoided cost” which is published on an annual schedule provide online by PNM.  The Large Array REC program contract with PNM is for 20 years.  A separate REC meter will be installed on your solar system to calculate its ac electricity production.  The REC income from PNM will first be used to pay any balance due on the “regular” or “net-metered” portion of your bill.  Any monies due after your account is settled will be sent to you as a check.
 
What is a REC?  When we’re talking about solar electricity, REC stands for Renewable Energy Certificate.  Here’s the typical definition of a solar REC:
A Renewable Energy Certificate (REC) can also be known as a Tradable Renewable Certificate (TRC) or a "green tag".  It represents the environmental, social, and other positive attributes of power generated by renewable resources.  In New Mexico, one REC is created with each kWh of renewable electricity generation.  A REC shall only have one owner at any point in time. The REC will contain all its original environmental attributes.

Current PNM REC rate

In addition to net metering and the REC program, PNM customers are eligible for the following:
30% Federal Income Tax Credit (homeowners and business owners) No Maximum
10% State Income Tax Credit (homeowners and business owners) $9000 Maximum
Depreciation Benefit (businesses only)
85% of the system cost can be depreciated
No NM GRT: all solar systems qualify