One More Weapon Against CFE

Small solar systems will be able to sell the electricity they produce

The Federal Electricity Commission (CFE) has withdrawn its opposition against buying electricity generated by small roof top operations. (Generated distribution). This means a quicker payback on an individual’s investment on solar.

CFE didn’t do this willingly, they were forced to by the regulatory agency that governs them. CFE wants to opt out of taking this electricity, (which southern Baja needs badly), arguing that they will lose money because of high transmission costs.

The legal action effectively means that people using small solar systems can now sell the energy they produce to the CFE. The general secretary of the National Solar Energy Association (ANES) said in April that CFE’s refusal to buy this extra energy was holding back investment in the sector. It was also a barrier to unlocking the full capacity of the distributed generation market in Mexico, whose potential value is estimated to be more than US $500 million, they said.

With CFE’s legal loss, three legally established self-generation electricity methods can now be implemented.

One is net metering, which means what a customer generates with his solar is digitally and transparently measured so any excess can be returned to that customer after dark, or whenever he needs it.

Net billing is paying the person generating excess solar in cash. That rate is set by the CRE, the regulatory agency, not CFE. Ha ha CFE!

Thirdly, solar generators who don’t need any of the energy they produce can send all their electricity into the national grid and receive dinero, again according to the rate set by the regulatory authority.

The National Solar Energy Association said the CFE’s capitulation is a sign of the maturity the solar market has reached, adding that achieving growth in the sector of 200% or more is now possible.

According to the CFE, they are being a good boy, already signing 60,000 net metering contracts with people who have installed solar panels with less than 500 kilowatts capacity on the roofs of their homes or on those of commercial premises. The CFE also said that 420,000 high-consumption customers could now take advantage of installing solar panels on their roofs with the confidence that by selling the excess electricity they produce, they will get back their initial investment in four to seven years.

It is estimated that by the year 2030, generated distribution (energy generated by individuals), capacity in Mexico could reach 19,000 megawatts and the sector could create one million jobs due to an increased demand to purchase solar systems and have them installed.

The CFE now has a period of 100 days to publish details of its billing and payments for the three energy sale methods while the CRE has until the end of the year to announce any changes to the existing rate calculation method.

Now you can feel free to run out and buy a solar system to nail to your roof. Use lots of nails, we’ve surely got more hurricanes coming. Better yet, hire a professional solar installer who knows what they’re doing with a hammer.