The State of NM Renewable Energy Portfolio (RPS) requirement for Rural Electric Cooperatives states that the utilities will provide 5% of their electricity by renewable resources by 2015, 6% by 2016, 7% by 2017, 8% by 2018, 9% by 2019 and 10% by 2020.  Coops can be credited for Renewable Energy in their grid as early as 2011, so this is when we expect to see Renewable Energy Certificate (REC) programs, similar to what the Investor-Owned Utilities are currently providing.

In addition to the federal and state programs listed below, Coop customers are compensated for their solar electricity systems by Net Metering.

Net Metering:
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.  Typical net metering means that every kWh sent onto the grid will be compensated with one kWh from the grid, at a later time or date provided that it is in the same billing period the kWh was produced.  Excess production (beyond what is used in a given month) will be compensated at the “avoided cost”, which may be less than ½ of the retail rate.

In addition to Net Metering, Rural Electric Coop 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