LOCAL COLUMN
Over 50,000 New Mexico homeowners and businesses have taken advantage of our state’s abundant sunshine by installing solar on their property to lower their energy bills. These customers are contributing to the electric grid’s efficiency and reliability, helping to reduce the need for new energy infrastructure and improving the environment.
The current Public Service Company of New Mexico net metering program, the mechanism that determines the compensation that solar owners receive for the electricity they produce, has played an important role in incentivizing customer-sited solar.
Now New Mexico’s largest utility wants to change its net metering program and its commitment to customers with solar installations and to customers who install solar in the future. PNM recently convened a meeting with stakeholders to announce several changes it wants to make for customers who have solar, including eliminating customers’ ability to bank credits for the excess production generated by their solar systems and forcing these customers into other rate arrangements.
Unfortunately, these kinds of actions are pursued by electric utilities to slow the growth of customer-sited solar and downplay its widespread benefits. In response to these actions, industry experts have undertaken the process of quantifying the value of solar, both to individual residents and businesses and the overall electric system. This undertaking is widely referred to as the “value of solar” (VOS).
Many studies show that compensating solar generation with traditional net metering undervalues rooftop solar once societal and environmental benefits (like avoided carbon emissions) are factored in. A 2025 Lawrence Livermore study on VOS evaluated the comprehensive economic, environmental and societal benefits of solar energy, finding it benefits homeowners and businesses by lowering costs. It also provides public health benefits and climate damage reduction.
The solar industry has always valued its relationship with electric utilities as they play a vital role in helping grow customer-sited solar, while maintaining a safe and reliable grid. But recent actions by PNM threaten this relationship. Not only has PNM not offered an alternative to reducing the compensation in its net metering program, but the company has opposed customer-sited solar initiatives like meter collar adapters, energy storage and virtual power plant legislation.
The New Mexico solar industry plays an important role in helping to reduce the energy burden for New Mexicans and contributing to our state’s economy. There are currently more than 70 solar companies in New Mexico, which include solar manufacturers, installers and developers, employing more than 2,000 New Mexicans. This does not account for businesses that provide products and services for the industry such as electrical supply houses, professional service companies and lending institutions.
It is time for PNM to embrace the changes going on around the world in the energy sector and work with customers and the local solar industry to continue the progress we have made for a strong, clean energy future that benefits everyone. The solar industry looks forward to working with PNM and other New Mexico utilities to best serve the energy needs of our state.
Jim DesJardins is the executive director of the Renewable Energy Industries Association of New Mexico.
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