|
ALBUQUERQUE, New Mexico, US, January 23, 2006
(Refocus Weekly)
A utility in New Mexico has received final
approval for a PV program that is among the first in the U.S. to be
based on the performance of the solar panels.
PNM has received approval from the New Mexico Public Regulation
Commission to launch a customer program in March that will
“significantly increase the amount of solar generation” in the
state. The incentives are based on the actual output of the solar
systems, compared with most customer-owned programs which offer
incentives based on the installation of PV panels.
PNM expects to purchase the environmental attributes from 18.7
million kWh of customer-generated solar power during a 12-year
period, at a cost of US$2.8 million. The alternative for the utility
would have been to construct a 1.2 MW solar facility that would
cover five acres of land and cost $7.8 million to build.
A customer with a typical 1 kW (AC) photovoltaic system could
receive $3,650 over 12 years by participating in the program. A
typical system costs $9,000 to $12,000, and any customer with a
system smaller than 10 kW is eligible to participate.
“We believe this program is a good way to make more environmentally
friendly renewable energy available to all of our customers,” says
Hugh Smith of PNM.
“This program is an historic step forward for New Mexico that will
make solar power much more affordable for residents,” adds Ben Luce
of the Coalition for Clean Affordable Energy, a coalition of
non-profit groups that advocates for clean energy policy.
The performance-based program will increase the value of the
customer's PV system by paying for the environmental attributes of
the solar energy generated, or the renewable energy certificate. PNM
will pay participants 13c/kWh for the environmental attributes and
customers can benefit by participating in PNM's net metering
program.
“This program reduces the cost of owning a small, inter-connected PV
system, but it is still cheaper for customers to have all of their
electricity supplied by PNM,” the utility explains. “Presently,
generating electricity with fossil fuels is less costly than
generating electricity with a photovoltaic system; this is because
photovoltaic technology is a relatively new technology when compared
to coal, nuclear and natural gas fueled power plants.”
Currently, PNM residential customers pay 8.03 c/kWh for power and it
costs 25 c “or more, to generate electricity using a photovoltaic
system not considering any state or federal tax incentives to reduce
the initial cost of the PV system,” it adds. “The high cost of 25
cents per kWh is a direct consequence of the high up-front cost for
the photovoltaic system. Most people who purchase an inter-connected
PV system do so to invest in a clean, renewable energy technology
because they are concerned about the impacts of conventional power
sources on our environment.”
PNM will not provide PV system design or installation advice, and
the utility directs interested customers to the New Mexico Solar
Energy Association. PNM will begin accepting applications for its
program on March 1, which will cost $100 to apply for residential
customers. For commercial customers, the application fee is $225, in
addition to a $50 net-metering application fee to interconnect with
the utility.
Customers with a PV system that has battery backup cannot
participate in the program, because the REC meter cannot distinguish
between power generated by a PV system and power produced by a
fossil fuel backup generator or from storage batteries. The New
Mexico Public Regulatory Commission has approved a budget that
allows for purchases from 171 kW of PV systems in 2006 and an
additional 90 kW per year in 2007 and later.
REC payments to customers are considered income and, if the total
payment to a customer is greater than $600 in a calendar year, tax
laws require PNM to report the amount as income to federal and state
tax authorities.
PNM provides electricity to 419,000 customers and natural gas to
470,000 customers in New Mexico.
Click here for more info...
Visit http://www.sparksdata.co.uk/refocus/
for your international energy focus!!
|
