Note: In November 2016, PNM was granted approval to extend the Customer Solar REC Purchase Programs through the end of 2019. 

In March 2006, PNM initiated a renewable energy credit (REC) purchase program as part of its plan to comply with New Mexico's renewable portfolio standard (RPS). PNM will purchase RECs from customers who install photovoltaic (PV) and solar thermal electric systems up to 100 kilowatts (kW). PNM will then be able to apply these RECs towards their obligations under the state's RPS, which requires 4% of the total generation capacity to come from solar electricity and 0.6% from distributed generation by 2020.

REC payments are based on the system's total output. PNM will purchase RECs from each participant as part of the regular monthly billing process. Participants will receive a monthly bill documenting the number of kilowatt-hours (kWh) produced by the PV system, the number of RECs purchased by PNM, the purchase price per REC, and the total price of RECs purchased that billing period. REC purchase payments will be applied as a credit to the participant's electric bill on a monthly basis.

In November 2016, PNM was granted approval to extend the program for three years, ending in 2019.

Systems up to 10 kW

PNM will purchase RECs generated by small PV systems at a rate of $0.0025 per kWh for 8 years of the system's operation. If the amount paid for the RECs is greater than the total of the customer's monthly electric service plus kWh charges, the balance of the REC payment will be carried forward as a credit for the following month's bill if $20 or less. If the REC payment balance is greater than $20 after credits to the customer's electric bill have been made, the entire REC payment balance will be paid directly to the customer.

The annual program capacity for small systems is 2 MW (AC) (6 MW total for the 3-year extension). The application fee is $150.

Systems greater than 10 kW up to 100 kW

PNM will purchase RECs generated by PV systems over 10 kW and up to 100 kW at a rate of $0.0025 per kWh for 8 years. The annual program capacity for large systems is 1 MW (AC) (3 MW total for the 3-year extension). The incentive rate paid depends on the size of the system:

If the amount paid for the RECs is greater than the total of the customer's monthly electric service plus kWh charges, the balance of the REC payment will be carried forward as a credit for the following month's bill if $200 or less. If the REC payment balance is greater than $200 after credits to the customer's electric bill have been made, the entire REC payment balance will be paid directly to the customer. PNM is granted at no cost any RECs associated with net excess generation. The application fee for large systems is $450.