By CONNOR DERMODY
As Spring begins, this is one of the more prominent times of the year where I experience an uptick in consultations for photovoltaic (PV) designs. Since I started working with homeowners in Los Alamos County four years ago, I have experienced quite a bit of change, from available incentives to how clients will be compensated for energy shared with the utility grid. Despite the ebbs and flows, I remain confident that the conscientious switch to rooftop solar is a sound solution for your current & ongoing energy needs. Here are a few reasons why I believe you should consider installation of a rooftop PV system for your own home:
Los Alamos County Utility’s ongoing electric rate increases: Electricity costs have skyrocketed for LACU customers since October 2023. Come July 2026, rates will have surged 35.7% in under three years [October 2023: 9.3%, July 2024: 9.4%, July 2025: 9%, July 2026: 8%]* – the reasons for such a drastic increase are multitudinous, but reasons include LACU’s inability to implement a gradual rate increase between 2015 and 2023, inflation, changes to where LACU is sourcing their electricity, and more. LACU hasn’t given customers any reason to believe that such exponential increases will come to a standstill. Installation of a PV/solar system provides some relief to this predicament: instead of remaining solely a consumer or customer of the utility, you become both a consumer as well as a producer of your power. Rather than being at the mercy of LACU’s ongoing electric rate increases, solar is a means for acquiring a fixed rate for your energy.
Chart indicating electric rate increases 2015-2025, created by Los Alamos County Utility. Courtesy/LAC
Another factor that homeowners should consider is the implementation of Time-of-Use (TOU) and peak demand charges come July 2026. LACU’s price per kilowatt-hour (kWh) will rise to $.1970/kWh between the hours of 5-11PM (the most popular time of energy usage/“demand”) and lower to $.1100/kWh 11PM-5PM, along with a demand charge of $1 per peak kW. A solar installation paired with a battery (which can be configured for either self-consumption or backup capability) is a means to avoid the financial burden that the change to Time-of-Use will cause. If interested, I am happy to share a spreadsheet where users can plug in their own consumption data to further understand how this adjustment to the rate structure will impact their own utility costs.
The 10% New Mexico State solar tax credit is still in place: Homeowners who install a solar/PV system can claim a 10% tax credit (up to $6,000) via the EMNRD’s Solar Market Development Tax Incentive. For more information on this, visit https://www.emnrd.nm.gov/ecmd/tax-incentives/solar-market-development-tax-credit-smdtc/.
Participation in renewable energy infrastructure: Installation of solar is a way you can contribute to a more sustainable future that utilizes a resource omnipresent (most days) here in New Mexico: the sun! In whatever ways that we can veer away from limited resources such as fossil fuels, it is best to do. For those holding their breath in anticipation of Foxtail Flats as a power source for Los Alamos County, I’d like you to consider: did the County give any assurance that your utility costs would decrease as a result of the project?
If I were to conclude with a final remark, it may be this… For a bill you’re never going to cancel, isn’t it worth considering where you choose to source your power?
For further inquiries or access to the spreadsheet mentioned above, please feel free to contact me via email.