The decision moves the state closer to permitting power purchase agreements. Already popular in California, they are something of a win-win for solar installers and homeowners. Under a PPA, a private firm builds, owns and runs a solar array; a customer - either a homeowner or commercial property owner - contracts to buy the electricity generated by the array for a predetermined amount of time.
PPAs obviate the biggest roadblock to home solar installations: upfront cost. And the electricity a customer agrees to buy is often cheaper than what he pays for grid-sourced power, meaning that his energy bills are lowered.
New Mexico utilities, and one member of the PRC, say that PPAs don't have sufficient consumer protections. But Patrick Griebel of the Renewable Energy Industry Association of New Mexico said to the Associated Press that cities, counties and contractors all benefit from increased solar power uptake.
He added that new solar power projects would not commence until the state had made a final ruling on PPAs' legality.
