Adding solar panels and switching rate plans can lower your Public Service Company of New Mexico (PNM) electric bill
Updated: October 22, 2020There are three ways you can reduce your PNM bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. PNM offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
On this page:
Solar panel cost calculator
How much can I reduce my Public Service Company of New Mexico (PNM) bill by switching to a different rate plan
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Public Service Company of New Mexico (PNM) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Public Service Company of New Mexico (PNM). Even a small savings can be worth it.
Are solar panels worth it for Public Service Company of New Mexico (PNM) customers?
Yes. With a 10% state solar tax credit, available property tax exemption, and strong net metering framework, home solar panels make a lot of sense for Public Service Company of New Mexico customers. PNM’s net metering rate also allows you to get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate as retail rates, and roll over to your next monthly bill.
Does Public Service Company of New Mexico (PNM) offer full 1 for 1 net metering credits for exported solar power
Yes, Public Service Company of New Mexico (PNM) offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.
In the case of Public Service Company of New Mexico (PNM), Time of Use (TOU) pricing applies. You will earn an average of $0.19 for power exported at peak rate times, and an average of $0.06 for power exported at off-peak times.
What incentives, tax credits and rebates are available to PNM customers for installing solar?
The major financial incentive currently available until the end of 2023 is the 30% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a PNM customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$4,213 |
|
New Solar Market Development Income Tax Credit
(State)
10% of purchase and installation costs of solar panel system. Cannot exceed $6,000 per taxpayer per year. |
-$1,560 |
|
Net Metering
(State)
utilities have two options for compensation: Net excess generation can be compensated at the avoided cost rate or by applying kWh credits to a customers utility bill. |
Varies |
|
Property Tax Exemption for Solar Systems
(State)
Solar systems not treated as physical improvements for property tax assessment and will not increase property tax value. |
Varies |
|
PNM - Performance-Based Solar Program
(Utility)
$0.0025 per kWh in exchange for RECs |
Varies |
| TOTAL | -$5,774 |
*Based on 6.99 kW system, average installation cost $15,604
How much does installing solar panels save the average Public Service Company of New Mexico (PNM) residential customer?
If you input the details for a PNM customer with a power bill of $170 per month into the best online solar panels calculator, it tells you that you need a 6.99 kW solar system that will produce 12,404 kWh per year and that this system will return the owner a $50,594 profit after repaying the cost of the system.
The solar savings possible for you as a PNM customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical PNM customer with a $170 per month electric bill prior to solar and who installs a 6.99 kW solar system.
How much do residential solar panels cost for PNM customers?
Showing data for:
Prices based on a 7.8kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$52,268-$63,883
Payback period
5-6.1 years
Recommended size for the selected utility bill
7.8kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 6.99 kW |
|
Annual Power Generation 12,404 kWh |
|
Pay-back time (assuming Cash purchase) 4.9 Years |
|
Internal Rate of Return (IRR) on Investment 17.1% |
|
Gross cost $15,604 |
|
Total Upfront Incentives and Rebates -$5,617 |
|
Net Cost of System after rebates and incentives $9,985 |
|
Total Cost of Utility Power Avoided over 25 years $57,602 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Public Service Company of New Mexico (PNM) customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Public Service Company of New Mexico (PNM) customer installing a 6.99 kW solar system on their property:
A solar system generating 12,404 kWh per year will save you money AND make the world a nicer place
Saves you
$2,024
on average per year
Reduces CO2 emissions
6.14
tons per year
Equivalent to planting
43 trees
per year
Equivalent to driving
13,583 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Public Service Company of New Mexico (PNM) customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.23 per watt or $9,985 for a standard 6.99 kW solar system after the customer claims the 30% federal solar tax credit.