PNM Says All Feeders Can Host Customer Solar: What New Mexicans Should Know

New Mexicans considering solar have received an encouraging signal from PNM.

In its draft 2026 Distribution System Plan, PNM makes an important statement about customer-sited solar:

“As of today, all of PNM’s feeders can host customer-sited installations.”

It indicates that PNM currently considers every feeder on its distribution system capable of hosting customer-sited installations. For New Mexico homeowners and businesses interested in solar, that is meaningful progress.

It is not, however, a guarantee that every proposed system can connect without further review. It also does not resolve a separate conversation about how solar customers receive credit for the electricity they send to the grid.

Understanding the significance of this announcement requires looking at both issues.

What Is a Feeder, and Why Does It Matter?

A feeder is part of the local distribution system that carries electricity from a substation to homes and businesses in the surrounding area.

When a solar system produces more electricity than a property is using, the unused energy can flow through the feeder and back into the grid. The ability of that feeder to accommodate additional customer generation is known as hosting capacity.

A feeder with limited capacity can create additional steps for a solar project. PNM may need to conduct a more detailed technical review, examine conditions near the property or determine whether equipment changes are necessary before approving the connection.

PNM’s current assessment is significant because it indicates that every feeder on its system can host customer-sited installations. This broader assessment may give more homeowners and businesses an opportunity to explore solar, including those in areas that were previously considered constrained.

What the Announcement Does Not Mean

PNM’s statement should not be interpreted to mean that every property can automatically receive approval for solar.

The company describes its system-wide assessment as a high-level review. The actual hosting capacity available for a particular project can depend on the section of the feeder serving the property, nearby voltage equipment, conductor limits, protection settings and the point of interconnection.

A feeder may be capable of hosting additional solar overall while a particular location on that feeder still requires closer evaluation.

PNM also explains that some areas may appear in yellow on its interconnection map. Yellow indicates that hosting capacity is available, but a supplemental review is required. This can occur where existing solar generation already causes electricity to flow back toward the substation during periods of low demand.

PNM says the map is updated at least quarterly. Available capacity may therefore change as new systems connect and local grid conditions evolve.

The outcome for each project will still depend on the property, system design and PNM’s interconnection requirements.

Grid Access Is Only One Part of the Solar Conversation

The feeder announcement addresses an essential question: Can a customer solar system connect to the local distribution grid?

A separate question is also important: How will customers be credited for the extra electricity their systems provide to that grid?

In an opinion piece shared by REIA-NM, Executive Director Jim DesJardins called on PNM to work with homeowners as New Mexico considers the future of net metering.

Net metering is the billing arrangement that accounts for the electricity a solar customer receives from the grid and the excess electricity the customer sends back. Solar banking allows eligible customers to carry excess kilowatt-hour credits from one billing month to another. Those credits can help offset electricity used during months when a solar system produces less energy.

During a May 2026 Pricing Advisory Committee meeting, PNM identified the elimination of solar banking as a proposal and described several related matters as being under consideration. These included possible grandfathering based on interconnection dates, avoided cost compensation, a transition to time-based rates, and system size limits. The presentations and meeting information are available through PNM’s Pricing Advisory Committee page.

At this stage, these public materials describe a proposal under consideration, not an adopted policy.

REIA-NM has urged PNM to preserve the current net metering program until another program is available that compensates solar customers for the electricity they contribute to the grid. The association has also encouraged interconnection improvements, policies that do not discourage solar paired with battery storage, and new programs that allow customer energy systems to support the grid when electricity is most needed.

Why Both Issues Matter

Grid access and net metering affect different parts of a customer’s solar experience.

Hosting capacity helps determine whether and under what conditions a system can connect. Net metering and solar banking help determine how excess electricity is treated after the system begins operating.

Progress on feeder access is worth recognizing. PNM’s latest assessment presents a more encouraging picture for customer-sited solar across its service territory. At the same time, predictable interconnection procedures and clear compensation policies remain important to homeowners, businesses and the local solar industry.

The announcement that all feeders can host customer-sited installations does not settle the net metering discussion. Likewise, the continuing net metering discussion should not diminish the importance of broader feeder availability.

Together, these developments show why informed public participation and sustained industry advocacy matter. A successful solar future requires a grid that can accommodate customer energy and policies that give customers a clear understanding of how their investment will be treated over time.

What This Means for PNM Customers Today

If grid capacity affected a solar project you considered in the past, the new feeder assessment may provide a reason to have your property reviewed again.

A new evaluation does not guarantee approval, but it can determine whether current grid conditions and PNM’s latest information create options that were not previously available.

Customers should also understand that the net metering discussion is ongoing. The materials reviewed describe proposals and policy questions rather than a final change to the program. Anyone considering solar should receive a clear explanation of the utility rules that apply at the time of installation.

At BT Energy, we believe customers deserve accurate information about both the technical and financial sides of going solar. Our local team evaluates each property individually, considers the relevant interconnection requirements, and explains the current utility process before a customer makes a decision.

We also recognize REIA-NM and everyone who has continued working to improve customer solar access in New Mexico. The latest feeder assessment is an encouraging result of that continued attention and advocacy.

Ready to Take Another Look at Solar?

If you were previously told that grid capacity could be a hurdle, let us take another look at your property. If you are exploring solar for the first time, we can help you understand the interconnection process and the current utility rules that may affect your project.