PNM in New Mexico just rolled out their new Rate Schedule 2G for residential solar customers and it's a disaster. They're charging a $30/month grid access fee plus time-of-use rates that make solar economics terrible. Client went from a $45 electric bill to $180 after installing a 8kW system. The buyback rate is only 2.7 cents while they charge up to 18 cents during peak hours. Anyone else dealing with this utility?
PNM Solar Rate Schedule 2G - anyone familiar with this mess?
Marcus, that sounds like the same garbage OG&E tried to pull here in Oklahoma a few years ago. The key is understanding the time periods for their TOU rates. Are they charging peak rates during solar production hours? Also check if existing solar customers got grandfathered under the old net metering rules. Most states have some protection for systems installed before rate changes.
Susan, the time periods are brutal - peak is 4pm to 9pm when solar production drops off. They designed it specifically to hurt solar customers. This customer's system was installed in March 2022, just before the new rates took effect April 1st, but PNM claims the interconnection wasn't complete so no grandfathering. Fighting it with the PUC but not optimistic given New Mexico's regulatory environment.
Marcus, I've seen similar tactics from MLGW here in Memphis. The utilities are getting desperate as solar adoption increases. Document everything about that March installation date - interconnection agreements, permit approvals, system commissioning reports. If you can prove the system was operational before April 1st, you might have grounds for grandfathering under the previous rate schedule.
This is exactly why I always recommend battery storage for my solar clients now. SDG&E here in San Diego has similar TOU rates that make grid-tied solar much less attractive. Adding a Tesla Powerwall or Enphase battery lets customers store solar production and use it during peak rate periods. Yes it adds $15K to the system cost but the payback works with these punitive utility rates.