As of August 2026, PNM offers net metering: it offsets your home usage with rooftop solar and rolls unused kWh credits forward. New Mexico power averages about 14.12 cents per kWh, below the 18.44-cent US average, but Albuquerque sun is strong, so a typical 8 kW system still makes roughly 14,232 kWh a year.
- New Mexico residential power runs about 14.12 cents per kWh (EIA, as of May 2026), below the national average of 18.44 cents, so the payback here leans on high production, not expensive power.
- PNM (Public Service Company of New Mexico) is the state largest electric utility, and as a PRC-regulated utility it is required to offer net metering (PNM Rates).
- PNM net metering offsets your usage and carries unused kWh credits forward, per PNM testimony in its 2025 rate case at the New Mexico Public Regulation Commission, Case No. 24-00089-UT (PNM 2025 Rate Request).
- Interconnection follows New Mexico Administrative Code Rule 17.9.568 and the New Mexico Interconnection Manual, and you must sign an interconnection agreement before you switch the system on (PNM; NM PRC Interconnection Manual).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If PNM is your electric utility in New Mexico, this is how rooftop solar pays you back in 2026. PNM credits the power you export through net metering, and while New Mexico power is cheaper than the national average, the state gets some of the best sun in the country, so each panel produces a lot. This page explains what PNM net metering does today, how the interconnection process works, what a pending rate case could change, and how to tell if your roof is a good fit. Where a number is not fully confirmed in a public tariff, we say so and tell you what to verify with PNM.
PNM and New Mexico solar at a glance
PNM, short for Public Service Company of New Mexico, is the state largest electric utility and serves much of the populated center of New Mexico, including the Albuquerque and Santa Fe areas. Because it is regulated by the New Mexico Public Regulation Commission (PRC), it must offer net metering to customers who install their own solar. For solar rules and incentives across the whole state, see our New Mexico solar guide.
| Detail | What to know |
|---|---|
| Utility | Public Service Company of New Mexico (PNM), the state largest electric utility, regulated by the New Mexico PRC |
| Residential rate | New Mexico averages about 14.12 cents per kWh, below the 18.44-cent US average (EIA, as of May 2026) |
| Net metering | Offsets your usage and carries unused kWh credits forward; taken under PNM Net Metering Service rider (Rider 24) |
| Eligibility (state rule) | New Mexico net metering is open to qualifying facilities up to 80 MW, with no statewide aggregate cap |
| Interconnection | Governed by NMAC Rule 17.9.568 and the New Mexico Interconnection Manual; an interconnection agreement is required before operating |
| What to verify | The exact export credit value and any changes from PNM 2025 rate case (Case No. 24-00089-UT), before you size a system |
| Source | PNM Rates; PNM interconnection and net metering rules |
Why solar still pays in New Mexico. New Mexico power is cheaper than the US average, so people sometimes assume solar makes less sense here. The opposite tends to be true, because the high-desert sun is exceptional. According to MySolarFY analysis (August 2026), a typical 8 kW rooftop system in Albuquerque produces about 14,232 kWh a year, and at New Mexico average rate of 14.12 cents per kWh that offsets roughly $2,010 of grid power annually. This estimate combines NREL PVWatts production for Albuquerque with the EIA residential rate; your own output depends on your roof pitch, orientation, and shading, so confirm it with the free PVWatts calculator and your actual bill. For a full cost and payback breakdown, see our guide to New Mexico solar costs. For how we build figures like this, see our data and methodology.
How PNM credits the power you send back
PNM net metering offsets your usage and rolls unused credits forward. In testimony filed with the New Mexico Public Regulation Commission in its 2025 rate case (Case No. 24-00089-UT), PNM described its existing net metering structure as letting customers offset their usage against rooftop solar production and carry forward any unused kilowatt-hour credit (PNM 2025 Rate Request). Net-metered customers take service under their normal residential rate plus PNM Net Metering Service rider, listed as Rider 24 on the PNM rate schedule (PNM Rates). New Mexico net metering, as a state rule, is open to qualifying facilities up to 80 MW with no statewide cap. For how export credits work in plain terms, see how net metering credits your solar exports.
One honest caveat on the exact credit value. PNM public filings confirm the offset-and-rollover structure, but they do not spell out, in one tariff line, a guaranteed full-retail export rate for every kilowatt-hour. Treat any quote that promises a flat, locked one-for-one retail credit as something to verify. Ask PNM for the current Net Metering Service rider terms in writing, and check whether the 2025 rate case changes how solar exports are valued before you size a system.
| What to know | Detail | Confidence |
|---|---|---|
| Usage offset | Rooftop production offsets what you draw from PNM | Confirmed in PNM filing |
| Credit rollover | Unused kWh credits carry forward | Confirmed in PNM filing |
| Rider | Net Metering Service (Rider 24), applied on top of your residential rate | Listed on PNM rate schedule |
| Exact export value | Not stated as a guaranteed full-retail rate in the public tariff line | Verify current terms with PNM |
| Pending change | PNM 2025 rate case (Case No. 24-00089-UT) raises cost-recovery issues that could affect solar customers | Ongoing at the PRC |
To see how a bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
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How to connect solar to PNM in New Mexico
Connecting a home system to PNM follows a set order, and the key rule is that you cannot turn the system on until PNM grants permission to operate. The technical requirements come from New Mexico Administrative Code Rule 17.9.568, which incorporates the New Mexico Interconnection Manual (PNM; NM PRC Interconnection Manual). The general path is:
- Interconnection application. You or your installer submit an application to PNM renewable energy group for the system you plan to install.
- Review and approval. PNM reviews the design against Rule 17.9.568 and the Interconnection Manual; small residential systems usually follow a simplified path.
- Interconnection agreement. You sign an interconnection agreement with PNM, which makes the state technical standards binding for your specific system.
- Install and inspect. The system is installed and passes your local electrical inspection.
- Meter and permission to operate. PNM sets or reprograms a bidirectional meter, then issues written permission to operate. The system may not run in parallel with the grid before this.
A licensed installer normally manages this whole process for you, but knowing the order helps you spot a quote that promises an instant switch-on. For the questions to ask before you sign, see the right questions to ask a solar installer.
How you pay changes which benefits you keep
New Mexico has historically offered a state solar tax credit, the Solar Market Development Tax Credit, but the current cap, funding, and 2026 availability are not confirmed in the sources we could verify, so treat it as something to check rather than count on. Confirm current state incentives with the New Mexico Energy, Minerals and Natural Resources Department before you assume any state credit. What is clear is that how you pay decides who owns the system and who keeps any renewable-energy certificates.
| How you pay | Up-front cost | Who owns the system | Net metering |
|---|---|---|---|
| Cash | Full system price | You | Yours, credits follow your PNM account |
| Solar loan | Little or none, financed over time | You | Yours |
| Lease or PPA | $0-up-front where you qualify | A third-party company | Yours, since credits follow the account holder |
If you own the system (cash or loan), you keep the PNM net-metering credits and any renewable-energy certificates your generation earns. If you lease or sign a PPA, the company that owns the panels usually keeps the certificates, and your benefit is a lower or fixed power price with no up-front cost, while the net-metering credits still apply to your PNM account because they follow the account holder. Neither path gives a 2026 New Mexico homeowner the federal residential credit, since that credit ended after December 31, 2025.
What changed federally, and what it means for PNM customers
The federal homeowner credit is gone, but PNM net metering is not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a PNM customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). New Mexico net metering and PNM interconnection rules were not affected, so the in-state value that carries the payback is unchanged. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit). For a leased system on a PNM account you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in PNM territory
Most of central New Mexico is PNM territory, so you have a solid market of licensed installers. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry professional standard for PV installers.
- Proper New Mexico licensing and any required local electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with PNM interconnection, so the application and permission to operate go smoothly.
- A written production estimate and a transparent quote you can compare side by side. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To see how we work and how we choose installers, read how MySolarFY works.
Frequently asked questions
Reviewed by the MySolarFY team. Figures were verified against the linked New Mexico (NM Public Regulation Commission, PNM rate schedules and Case No. 24-00089-UT), EIA, NREL PVWatts, and IRS sources as of August 2026; net-metering terms and rates change over time, so confirm current terms with PNM and the New Mexico PRC before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the renewable-energy certificates go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
