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🌶️ New Mexico⚡ EPE Rules Changed July 2025

New Mexico
Solar Permit Plans.
NEC 2020. PNM Still 1:1 NEM.
El Paso Electric Changed July 2025.

New Mexico is the sunniest state in the country — and a tale of two utility territories. PNM customers in Albuquerque and Santa Fe still enjoy 1:1 retail-rate net metering that rolls over indefinitely. El Paso Electric customers in Las Cruces and southern New Mexico face substantially changed interconnection rules since July 1, 2025: battery storage is now effectively essential to capture full solar value. Knowing which utility serves the project address determines the entire design strategy.

NEC 2020 — 14.10.4 NMAC, eff. March 2023 PNM: 1:1 retail NEM indefinite rollover EPE: battery essential post-July 2025 NSMDTC: 10% solar / 20% solar+battery All 33 Counties
Order NM Plan Set →See EPE July 2025 Rule ↓
NEC 202014.10.4 NMAC — effective March 28, 2023
PNM: 1:1 NEMRetail rate, indefinite credit rollover
EPE: July 1, 2025Changed — battery now essential
NSMDTC 10%–20%Doubles with qualifying battery
NEC 202014.10.4 NMAC — statewide
PNM: 1:1 NEMBest NEM in NM
EPE Post-Jul 2025Battery-first in southern NM
NSMDTC 10/20%Doubles with battery ≥15 kWh
33 CountiesAll covered
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AHJ-ReadyBuilt to current AHJ requirements
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24–48 HrsTypical residential turnaround
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Free RevisionsFor AHJ-requested corrections
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150+ PartnersSolar installers, EPCs & roofers
New Mexico Solar Permits — 2026

Best Solar Resource in the US. Two Very Different Utility Territories. One State Tax Credit That Doubles With Battery.

Permit Design builds New Mexico solar permit plan sets for solar installers, EPCs, and roofing companies across all 33 counties. New Mexico's electrical code is NEC 2020, adopted by the Construction Industries Division (CID) of the Regulation and Licensing Department under 14.10.4 NMAC, effective for all work performed on or after March 28, 2023. Structural codes are the 2018 IBC and IRC with New Mexico-specific amendments adopted through the CID. New Mexico consistently ranks as one of the top two states nationally for solar resource quality — 300+ days of sunshine annually, with peak sun hours averaging 5.5 to 6.5 per day across most of the state.

What defines the New Mexico solar market in 2026 is the utility split. PNM, which serves Albuquerque, Santa Fe, Rio Rancho, and most of central and northern New Mexico, still offers genuine 1:1 retail-rate net metering with indefinite credit rollover. El Paso Electric, serving Las Cruces, Anthony, Hatch, Sunland Park, and the southern New Mexico border region, changed its interconnection rules effective July 1, 2025 — reducing export compensation to a level that makes grid export financially unattractive for new customers. For EPE customers interconnecting after that date, battery storage is effectively essential to realize full solar value. The New Mexico Solar Market Development Tax Credit compounds this: adding a qualifying battery (≥15 kWh) doubles the available state credit from 10% to 20% and raises the cap from $6,000 to $12,000.

Last updated: June 2026 · NEC 2020 adoption (14.10.4 NMAC), El Paso Electric July 2025 rule change, PNM net metering terms, and NSMDTC rates confirmed as of June 2026.

El Paso Electric — July 1, 2025 Rule Change

Southern New Mexico Solar Changed on July 1, 2025. Battery Is No Longer Optional.

Customers who received interconnection approval from El Paso Electric before July 1, 2025 are grandfathered under the prior net metering rules. Customers interconnecting after that date face a fundamentally different export compensation structure.

What changed: El Paso Electric customers interconnecting after July 1, 2025 receive substantially reduced compensation for energy exported to the grid — at rates that make export financially unattractive compared to self-consumption. A kilowatt-hour of solar that powers the home directly offsets retail-rate consumption; the same kilowatt-hour exported earns a fraction of that. The math is similar to what occurred in Utah in 2017 and Hawaii in 2015 when those states moved away from 1:1 net metering. For new EPE customers in Las Cruces, Anthony, Hatch, Sunland Park, and surrounding southern New Mexico communities, a battery storage system is now effectively essential — it captures midday solar generation and makes it available for self-consumption in the evening rather than exporting at the reduced rate.
PNM — Albuquerque, Santa Fe, Rio Rancho
1:1 Net Metering — Retail Rate, Indefinite Rollover
Public Service Company of New Mexico still offers full 1:1 retail-rate net metering for new residential solar customers. Exported kilowatt-hours earn a bill credit equal to the retail rate, applied to future bills with indefinite rollover — no annual true-up at a reduced rate. Systems are sized up to 120% of annual consumption. PNM territory covers Albuquerque, Santa Fe, Rio Rancho, Bernalillo, Farmington, Gallup, and most of central and northern New Mexico. PNM is the most favorable utility territory for solar proposals in the state.
El Paso Electric — Las Cruces, Southern NM
Post-July 2025: Battery-First Design Required
El Paso Electric reduced solar export compensation effective July 1, 2025 for new interconnection customers. The reduced rate makes self-consumption the priority for system economics — export is no longer the valuable revenue stream it was pre-July 2025. Battery storage paired with rooftop solar lets customers store midday generation for evening self-consumption, avoiding both the low export rate and grid purchases during peak demand hours. EPE serves Las Cruces, Anthony, Hatch, Sunland Park, Chaparral, and the communities along the NM-Texas border. Installers active in Doña Ana County and the Rio Grande Valley should default to battery-inclusive designs for all new EPE customers.
Xcel Energy (SPS) — Northeast New Mexico
1:1 Monthly Credits ≤10 kW; FPPCAC Rate Above
Xcel Energy's Southwestern Public Service Company (SPS) serves northeastern New Mexico — Clovis, Portales, Hobbs, Lovington, and surrounding Lea and Curry counties. For systems up to 10 kW, monthly net excess is credited at the full retail rate. For systems above 10 kW, excess above monthly consumption is credited at the FPPCAC (Fuel and Purchased Power Cost Adjustment) rate, with accumulated excess credits paid as a check when they exceed $50. The 120% consumption cap applies here as well.
The NSMDTC doubles when you add a battery. New Mexico's Solar Market Development Tax Credit pays 10% of installation costs (up to $6,000) for solar-only systems. Add a battery storage system with at least 15 kWh of capacity and the credit doubles to 20% (up to $12,000). For an EPE customer for whom battery storage is already essential for system economics, the doubling tax credit reduces the battery's net cost significantly — strengthening the case for battery inclusion from both a financial and a regulatory standpoint.
New Mexico Code Structure

NEC 2020 · 2018 IBC + IRC · 2018 IECC — All with NM Amendments

New Mexico's code stack is consistent across the state and enforced by the CID statewide, with local building departments serving as the AHJ for permit issuance and inspections.

Electrical
NEC 2020 (14.10.4 NMAC)
✓ Effective March 28, 2023
✓ CID RLD statewide enforcement
✓ §690.12: single RSD device
✓ UL 3741 PVHCS path recognized
Structural
2018 IBC + 2018 IRC
✓ With NM amendments
✓ ASCE 7 wind + seismic per county
✓ High desert wind exposure notable
✓ Northern NM: snow loads significant
Energy Code
2018 IECC with NM Amendments
✓ Statewide energy standard
✓ Affects envelope + mechanical
✓ Solar PV references NEC 2020 and structural
✓ EMNRD certification required for NSMDTC
New Mexico's structural loads vary dramatically by region. Northern New Mexico — Taos, Santa Fe, and the Sangre de Cristo mountain communities — carries significant ASCE 7 ground snow loads and higher seismic design categories near fault zones. The eastern plains and Chihuahuan Desert regions face high wind exposure with minimal snow. Albuquerque sits in a moderate zone. Every New Mexico structural calculation uses ASCE 7 values specific to the project county rather than statewide defaults.
What's Included

New Mexico Solar Permit Plan Set Contents

Every New Mexico plan set confirms the utility, documents NEC 2020 under 14.10.4 NMAC, applies county-specific ASCE 7 structural values, and includes interconnection documentation matched to the specific utility program — including battery documentation for El Paso Electric customers.

Sheet 01
Cover Sheet
NEC 2020 citation under 14.10.4 NMAC with March 28, 2023 effective date. 2018 IRC (residential) or 2018 IBC (commercial) structural reference with NM amendments noted. Utility confirmed — PNM net metering, El Paso Electric post-July 2025 program, or Xcel Energy SPS. If EPE post-July 2025: battery storage system noted. AHJ and county identified. NSMDTC eligibility confirmed.
Sheet 02
Site Plan
Scaled property drawing locating lot boundaries, the confirmed utility's service point and meter location, fire access routes, and conductor path from array through inverter to panel and battery (EPE installations). County noted for ASCE 7 wind and seismic lookup. Northern NM counties with mountain terrain flagged for snow load review; eastern plains counties flagged for high wind exposure category.
Sheet 03
Roof Layout
Array footprint showing module placement, roof pitch, orientation, and attachment points referenced to 2018 IRC framing provisions. Fire setback pathways per AHJ requirements. ASCE 7 ground snow and wind values applied per county — a Taos installation and a Las Cruces installation use materially different design parameters, and both are confirmed before the attachment schedule is set.
Sheet 04
Single-Line Diagram
Article 690 single-line diagram built to NEC 2020 — shutdown initiator per §690.12, current labeling format, PVHCS alternate compliance path noted where the design uses it. For PNM and Xcel SPS: bidirectional net meter shown per utility interconnection format. For EPE post-July 2025: battery interconnection and non-export configuration shown, with the self-consumption design logic documented per EPE's updated technical standards.
Sheet 05
Structural Calculations
New Mexico-licensed PE stamp covering roof or racking structural adequacy. 2018 IRC for residential; 2018 IBC for commercial. County-specific ASCE 7 tabulated values for wind, snow, and seismic — confirmed per project county, never pulled from a regional or statewide average. Northern NM counties near the Sangre de Cristo range receive seismic and snow figures appropriate to that terrain; southern NM desert counties receive high-wind values instead.
Sheet 06
Rapid Shutdown
NEC 2020 §690.12 compliance sheet — one-foot array boundary, single initiation device, §690.12(D) label format. PVHCS alternate path documented where used. For battery-inclusive EPE designs: battery management system's interaction with the rapid shutdown initiator is confirmed and documented, since the battery configuration may affect the shutdown sequence depending on the inverter architecture chosen.
Sheet 07
Equipment Datasheets
UL-listed manufacturer cut sheets for modules, inverter, racking, and MLPE — plus battery system documentation for EPE and battery-inclusive PNM designs. Arranged per the interconnection submission requirements of the confirmed utility. NSMDTC eligibility: EMNRD certification reference noted for solar-only (10%/$6,000) and solar-plus-battery (20%/$12,000) configurations. 120% consumption cap confirmed compliant based on system size vs customer's annual usage.
🏗️ Commercial Solar in New Mexico

Also doing commercial carport, ground-mount, or rooftop in New Mexico?

New Mexico commercial solar packages reference the 2018 IBC with NM amendments, NEC 2020 Article 690, and interconnection documentation for PNM, El Paso Electric (post-July 2025 commercial program), or Xcel Energy SPS. ASCE 7 wind and seismic values applied per county — northern NM commercial projects in Santa Fe and Taos county need seismic analysis that southern desert projects do not. Engineering covers mechanically attached and ballasted flat-roof arrays, carport steel structures, and ground-mount racking for fixed-tilt or single-axis tracker configurations. NSMDTC commercial eligibility noted where applicable. Custom scope and turnaround quoted per project.

NEC 2020 (14.10.4 NMAC) 2018 IBC NM PNM / EPE / Xcel SPS NSMDTC Eligible
Commercial Quote →
Scope + turnaround quoted per project
Process

How New Mexico Solar Permit Plan Sets Work

01

Submit Your New Mexico Project

Give us the county and street address. We confirm the utility — PNM (1:1 NEM), El Paso Electric (post-July 2025 battery-first), or Xcel Energy SPS — flag if EPE battery documentation is required, identify the local AHJ, and note ASCE 7 wind, seismic, and snow values for the county.

02

Built to NEC 2020 + Confirmed Utility

NEC 2020 Article 690 under 14.10.4 NMAC — single-device shutdown per §690.12, §690.12(D) labeling, PVHCS path available. 2018 IRC or IBC structural with county ASCE 7 values. NM-licensed PE stamp. Interconnection documentation for the confirmed utility and program. Battery system documentation added for EPE customers and NSMDTC 20% track.

03

Delivered in 24–48 Hours

The complete 7-sheet New Mexico package ships in 24–48 hours. Plan sets for EPE customers include battery system documentation formatted for El Paso Electric's post-July 2025 technical requirements. NSMDTC eligibility noted throughout. Free revisions until the New Mexico AHJ approves.

First-Time New Mexico Clients

Try Us on Your First New Mexico Project. Free.

New to Permit Design? Hand over your first New Mexico residential project and we will put together the complete 7-sheet package at no charge — NEC 2020 electrical, 2018 IRC structural with county-specific ASCE 7 values, and interconnection documentation for the confirmed utility. If the project is in El Paso Electric territory, we include battery system documentation formatted for the post-July 2025 program.

⚠️ Licensed solar installers, EPCs, and roofing companies only — individual homeowners and residential end customers do not qualify. One free residential plan set per company.

Claim Your Free NM Plan Set →
✓ NEC 2020 — 14.10.4 NMAC confirmed
✓ 2018 IRC structural + PE stamp
✓ County ASCE 7 wind + seismic
✓ PNM / EPE / Xcel SPS confirmed
✓ Free revisions until AHJ approval
FAQ

New Mexico Solar Permit Design — Frequently Asked Questions

NEC 2020. New Mexico's Construction Industries Division adopted the 2020 NEC under 14.10.4 NMAC, effective March 28, 2023. This applies statewide for all electrical contracting and permit work. NEC 2020 requires single-device rapid shutdown per §690.12, the UL 3741 PVHCS alternate compliance path, and §690.12(D) labeling on all new residential solar permits.
El Paso Electric substantially reduced solar export compensation for customers interconnecting after July 1, 2025. The new rate makes exporting to the grid financially unattractive compared to self-consumption. For new EPE customers in Las Cruces, Anthony, Hatch, and surrounding communities, battery storage is now effectively essential — the system charges the battery during peak solar hours and the household draws from storage in the evening rather than exporting at the reduced rate. Customers who received interconnection approval before July 1, 2025 are grandfathered under the prior terms.
Yes, but terms vary by utility. PNM customers receive 1:1 retail-rate credits that roll over indefinitely — one of the strongest NEM policies in the Southwest. Xcel Energy SPS customers in northeastern New Mexico get 1:1 monthly credits for systems up to 10 kW, with excess credited at the FPPCAC rate above that. El Paso Electric's program changed significantly for customers interconnecting after July 1, 2025, with reduced export compensation that makes self-consumption and battery storage the stronger financial model. All programs apply to systems sized up to 120% of the customer's annual consumption.
The NSMDTC provides a state income tax credit of 10% of eligible solar costs, up to $6,000 per year for solar-only systems. For systems that include battery storage with at least 15 kWh of capacity, the credit doubles to 20% of costs, up to $12,000. Systems must be certified by the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) to qualify. The credit can be carried forward if it exceeds annual tax liability. A 2026 Legislature proposal would raise the credit to 30% with a $15,000 cap — it had not been enacted as of June 2026.
New Mexico has three investor-owned utilities: PNM serving Albuquerque, Santa Fe, Rio Rancho, and most of central and northern NM; El Paso Electric serving Las Cruces, Anthony, Hatch, Sunland Park, and southern NM near the Texas border; and Xcel Energy SPS serving Clovis, Portales, Hobbs, and northeastern NM. Rural electric cooperatives — Socorro Electric, Jemez Mountains Electric, Continental Divide Electric, and others — serve rural areas and many offer net metering voluntarily even though it is not mandated for cooperatives.
New Mexico's net metering rules cap solar system size at 120% of the customer's average annual electricity consumption. A system producing more than 120% of the home's historical usage cannot participate in net metering — it must be downsized or designed around a storage-only model. This applies across PNM, El Paso Electric, and Xcel Energy SPS. Oversizing to maximize annual production may push a system out of net metering eligibility if it significantly exceeds the household's consumption baseline.
Yes, battery storage is now effectively essential for new EPE customers interconnecting after July 1, 2025. The post-July 2025 rules reduce the compensation rate for exported solar to a level that makes grid export unattractive. A battery stores solar generation during peak production and supplies the home in the evening, offsetting full retail-rate consumption rather than exporting at the lower rate. The New Mexico NSMDTC doubles from 10% to 20% when a qualifying battery (≥15 kWh) is added — directly subsidizing the storage component.
The 2018 IBC and 2018 IRC with NM amendments govern structural requirements for commercial and residential solar respectively. The 2018 IECC with NM amendments is the energy code. Structural calculations reference ASCE 7 wind, snow, and seismic values for the project county — northern NM mountain counties carry significant snow loads and higher seismic design categories, while southern and eastern NM counties are governed primarily by high-wind values. New Mexico's 33 counties each administer permits through their local building department.
Yes. New Mexico offers the NSMDTC (10%/$6,000 solar-only; 20%/$12,000 solar+battery ≥15 kWh), a gross receipts tax exemption on qualifying solar equipment, and a property tax exemption on added home value from solar. The federal Section 25D residential credit ended for systems placed in service after December 31, 2025. A $156 million EPA Solar for All grant is launching programs for income-qualified NM households. See DSIRE New Mexico for the full current incentive listing.
Permit Design delivers New Mexico solar permit plan sets within 24-48 hours. Every plan set references NEC 2020 under 14.10.4 NMAC, the 2018 IBC or IRC with NM amendments, ASCE 7 county-specific values, and interconnection documentation for the confirmed utility. EPE post-July 2025 projects include battery system documentation. Free revisions until the New Mexico AHJ approves.
New Mexico Solar Market — 2026

New Mexico Solar by the Numbers

#1
Solar Resource — Sunniest State
New Mexico consistently ranks as the top state nationally for solar resource quality, with statewide average peak sun hours of 5.5 to 6.5 per day. Albuquerque averages 5.8 peak sun hours; Las Cruces and the southern Chihuahuan Desert average 6.3 to 6.5. The solar resource alone makes New Mexico installations among the highest-producing per installed watt in the country.
$156M
EPA Solar for All Grant
New Mexico received one of the largest state allocations under the EPA Solar for All program — $156 million to expand solar access for income-qualified households and develop the clean energy workforce. Programs are launching in 2025 and 2026, creating new market opportunities for installers participating in community and shared solar arrangements.
20% / $12K
NSMDTC with Battery Storage
The New Mexico Solar Market Development Tax Credit doubles when a battery of at least 15 kWh is included in the installation — from 10% (up to $6,000) to 20% (up to $12,000). For El Paso Electric customers for whom battery storage is now financially essential, the doubled tax credit directly offsets the incremental cost of adding storage. Certification through EMNRD is required to claim the credit.
120%
Consumption Cap — Statewide NEM Limit
All three New Mexico IOUs cap net metering eligibility at 120% of annual consumption. Systems sized above this threshold must be downsized or designed around a storage-first model to remain within net metering eligibility. This cap shapes the maximum viable system size for every New Mexico residential proposal — accurate annual consumption data is prerequisite to correct sizing.
300+ Days
Annual Sunshine — Statewide Average
New Mexico averages more than 300 days of sunshine per year statewide — one of the highest counts in the US. Combined with high elevation (Albuquerque sits at 5,300 feet, with cooler panel operating temperatures than sea-level desert sites) and low humidity, New Mexico installations achieve high-performance factors that strengthen the financial case even where net metering terms have changed.
33 Counties
Structural Loads Vary Significantly
New Mexico's 33 counties span terrain from the 13,000-foot peaks of the Sangre de Cristo range in Taos and Santa Fe counties to the Chihuahuan Desert floor in Doña Ana and Hidalgo counties. ASCE 7 design values for wind, snow, and seismic differ substantially across this range. Every Permit Design structural calculation is run per the specific project county — never averaged statewide.
New Mexico AHJ Rejections

Top 3 Reasons New Mexico Solar Permits Get Rejected

Three issues account for most New Mexico plan set corrections across the state's county-level building departments.

01
Pre-NEC 2020 Rapid Shutdown Format — 2017 Still Appearing
New Mexico moved to NEC 2020 in March 2023, but plan sets formatted to NEC 2017's multi-device rapid shutdown standard still appear on New Mexico permits — particularly from installers primarily working in neighboring states still on NEC 2017. New Mexico inspectors reviewing a plan set with §690.56(C) NEC 2017 labeling rather than the §690.12(D) NEC 2020 format will flag the version mismatch.
14.10.4 NMAC · NEC 2020 §690.12
How we prevent it: Every New Mexico plan set references NEC 2020 under 14.10.4 NMAC with the March 2023 effective date. NEC 2017 rapid shutdown formatting is not used for any New Mexico permit.
02
EPE Post-July 2025 — Old NEM Template, Missing Battery Docs
El Paso Electric interconnection applications submitted with pre-July 2025 net metering documentation don't match EPE's current technical requirements for new customers. The post-July 2025 EPE program requires different meter configuration, different export handling documentation, and for battery-inclusive systems, specific battery management and non-export programming documentation. A plan set formatted as a traditional NEM application for an EPE project interconnecting in 2026 will be returned by the utility.
EPE post-July 2025 rules · battery documentation
How we prevent it: EPE projects receive documentation built for the post-July 2025 program — including battery system specs and non-export configuration details — rather than adapted from a prior-era NEM template.
03
Statewide Wind Average Used — Northern NM Snow + Seismic Missing
Applying a generic New Mexico wind and snow assumption to a northern county installation in Taos, Rio Arriba, or Santa Fe county produces structural calculations that understate both the ground snow load and the seismic design category. New Mexico's mountain counties near the Sangre de Cristo and Jemez ranges carry ASCE 7 values well above what applies in Albuquerque or Las Cruces — a structural plan checker or local AHJ will flag the mismatch.
ASCE 7 · 2018 IRC Ch. 3 · NM county values
How we prevent it: ASCE 7 wind, snow, and seismic values are pulled per the specific project county. Northern NM mountain counties receive their own verified figures — not averaged with the desert south or the eastern plains.
More on permit plan requirements → Residential Solar Permit Design →
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The Permit Design Commitment

What every solar installer, EPC, and roofing company can expect on every project.

✅ 24–48 Hour Turnaround on Standard Residential Solar Projects
✅ No-Cost Revisions for AHJ Corrections Related to Our Design
✅ Code-Compliant Plans Built to Current NEC, Utility & Local Requirements
✅ Support Through Permit Approval — We Don't Disappear After Delivery
⚡
Reviewed & Verified By PE-stamped plan sets spanning all 50 states · NEC 2020 adoption confirmed via 14.10.4 NMAC · El Paso Electric July 2025 rule change and NSMDTC rates verified through EMNRD and utility filings
AHJ-ReadyNEC 2020 confirmed
150+Installer partners
50US states covered
EPE 2025Post-July rules covered
Permit SupportThrough AHJ approval
Last reviewed: June 2026·About Permit Design →
NEC 2020PNM 1:1 NEMEPE Post-July 2025NSMDTC 10%/20%
Neighbouring States

Solar Permit Plan Sets — Southwest States

🌵ArizonaNEC 2023 🏜️UtahNEC 2023 🏔️ColoradoNEC 2020 ⭐TexasNEC 2020 🎰NevadaNEC 2020

New Mexico Solar Permits —
Utility-Confirmed. Battery-Ready.

NEC 2020 · PNM 1:1 NEM · EPE Post-July 2025 Documented
NSMDTC Noted · 33 Counties · 24–48 Hours

Order NM Plan Set →Contact Us
First-time New Mexico client? Your first residential plan set is on us. Mention "free trial" in your order notes.