Why New Mexico Should Adopt Net Crediting for Community Solar 

Net crediting is fundamental in delivering community solar to low-income households and is used in New York, New Jersey, Maryland, Illinois, Minnesota, and Oregon.  

How does billing work now and what is Net Crediting? 

Low-income subscribers under the current dual bill model: 

1. Utility applies 100% of credits to a subscriber’s utility bill
2. Subscriber receives a community solar provider bill for 72% of credits 
3. If a subscriber does not pay their community solar provider bill in multiple consecutive months, they are removed from the project and no longer receive community solar bill assistance 

Low-income subscribers under Net Crediting: 

1. Utility applies 28% of credits (the Net Credit) to a subscriber’s utility bill 
2. Utility applies 72% of credits, minus a fee, to the community solar project, independent of a customer’s utility bill payment 
3. If a subscriber does not pay their entire utility bill in multiple consecutive months, they are not removed from the project and can continue to receive community solar bill assistance 

Why is Net Crediting necessary? 

1. It enables providers to serve all New Mexicans, including unbanked households and families struggling to pay every utility bill on time 
2. It removes the number one barrier to community solar by allowing customers to subscribe without giving payment information to a third-party provider  

What does Net Crediting require from the utilities? 

1. Utilities split monthly credits into two parts: one part goes to subscribers as savings and the other part (minus a fee) goes to the project owner 
2. Utilities collect monthly fees from project owners in return for delivering Net Crediting, structured as a percentage of the monthly credits for the project