System Benefits Charge

July 26, 2021


The New Mexico system benefits charge was replaced with the passing of the Efficient Use of Energy Act

As part of New Mexico's Electric Utility Industry Restructuring Act of 1999 the legislature created the Electric Industry System Benefits Fund for renewable energy, customer education, and low-income assistance. The fund is created through a charge of 0.03¢/kWh beginning January 1, 2002 and doubling in 2007. The charge is collected from all electric utilities, both private and public. The funds will support renewable energy up to $4 million to be used by school districts, cities, towns, villages, or counties. Renewable technologies to be supported include solar, wind, geothermal, biomass, landfill gas, and hydropower. Consumer education will be funded at $500,000 and overseen by the Public Regulation Commission. Low-income energy assistance will be funded at $500,000 and provision of electricity to remote communities not connected to the grid will be funded at up to $4,000,000. These funds will be used to develop electric service through the initiation and implementation of new projects, including those using renewable energy, to provide or extend electric service in low-income communities.

Program Overview

Implementing Sector: State
Category: Regulatory Policy
State: New Mexico
Incentive Type: Public Benefits Fund
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Municipal Solid Waste
  • Renewable Fuels
  • Wind (Small)
Types: renewables, low income, consumer education
Total Fund: $4 million for renewables
Charge: 0.03¢/kWh


Name: Melinda Hall
Organization: New Mexico Environment Department
Address: 1190 St. Francis Drive
Sante Fe NM 87503
Phone: (505) 827-1732

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.