Energy Incentive Programs, New Mexico
Updated November 2009
Below you will find questions and answers regarding New Mexico's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
What public-purpose-funded energy efficiency programs are available in my state?
In 2005, Governor Richardson signed the Efficient Use of Energy Act, which directs New Mexico's utilities to fund energy efficiency programs through a utility bill surcharge capped at 1.5% of customer bills. In February 2008, the New Mexico state legislature passed and the governor signed a new law that requires electric utilities to achieve at least 5% energy savings by 2014 (and 10% by 2020) from their 2005 electricity sales as a result of cost-effective energy efficiency programs. In 2008, New Mexico utilities budgeted $11 million to promote energy efficiency in the state.
What utility energy efficiency programs are available to me?
Xcel Energy (Southwestern Public Service Company of New Mexico) offers rebates for various energy efficiency initiatives across existing buildings and new construction. Rebate programs include:
Cooling efficiency for chillers, condensing units, water source heat pumps and more.
Custom efficiency for almost any electric equipment or process improvement that leads to energy savings. Custom efficiency projects require pre-approval before purchase and installation.
Lighting efficiency for lighting retrofits, new construction, or custom measures.
Motor and drive efficiency for new motors, motor upgrades, variable/adjustable drives, and custom projects.
Small business lighting available to facilities that have peak demand of 400 kW or less.
Public Service Company of New Mexico (PNM) offers several rebates for business customers, including:
Retrofits for energy saving upgrades to existing buildings, both pre-set (lighting, HVAC, refrigeration, and motors) and custom incentives.
New construction for projects more efficient than New Mexico building code.
Advanced evaporative cooling offers up to $500 per qualifying unit installed depending on the system.
What load management/demand response options are available to me?
Public Service Company of New Mexico's Peak Saver Program offers quarterly incentives to enrolled customers in return for voluntarily reducing the amount of energy used during peak demand days, typically the hottest days of the year. The size of the incentive paid depends on the amount of electricity managed by the program.
Public Service Company of New Mexico's Power Saver Program offers small- and medium-sized facilities annual incentives for allowing the company to connect a device to their air-conditioning units so that they can be controlled in a similar way as a thermostat. On selected summer weekday afternoons when electricity demand soars, the Power Saver device receives a wireless signal that puts the refrigerated air-conditioning unit into a conservation mode.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. Federal customers may be interested in the following programs:
Xcel Energy offers two renewable energy incentive programs for solar and biomass installations:
For businesses that have existing photovoltaics (PV) installed, the Solar*Rewards program provides incentives for small- and medium-sized systems installed before February 9, 2009. The program also purchases renewable energy credits (RECs) generated by small- and medium-sized systems (up to 100 kW DC). Larger New Mexico businesses may qualify for REC payments through a request for proposal (RFP) process on large systems that generate more than 100 kW.
Xcel customers who install biomass generation at their businesses can receive REC payments of $0.08 per kWh for the actual biomass energy produced. There are two different programs; one for systems from 10 kW AC to a maximum electric service entrance capacity of 50 kW AC, and one for systems greater than 50 kW AC but less than 1 MW AC.
Public Service of New Mexico (PNM) offers its Customer Solar PV Program, which pays $0.13 per kWh for energy produced by PV systems 10 kW or smaller for 12 years of the system's operation. Systems greater than 10 kW and up to 1 MW receive $0.15 per kWh for 20 years of the system's operation. The incentives are structured in exchange for the system's RECs and are additional to net metering benefits.
Are there energy efficiency programs sponsored by the state government?
No state energy efficiency programs are currently available to Federal customers. For information on future opportunities, contact the Energy Conservation and Management Division of the New Mexico Energy, Minerals, and Natural Resources Department.
What additional opportunities are available to me?
Federal customers whose utilities have area-wide supply contracts through the General Services Administration (GSA) (e.g., El Paso Electric and Public Service Company of New Mexico) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.