An important caveat: One factor that’s bringing down the price of the Macho Springs plant’s electricity is the array of federal and state subsidies going to solar power. For example, New Mexico’s state production tax credit will add something between 2.5 to 2.7 cents per kilowatt-hour to the system’s revenue for its first decade. There’s also a 30 percent federal investment tax credit to consider. Add all that in and it brings Macho Springs’ price alongside that of comparable projects in California, which generally clock in a bit above 8 cents per kilowatt-hour — though still lower than Bloomberg’s average price for new coal plants.
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Tuesday, February 5, 2013
NM buys solar energy to save money!
New Mexico just signed a contract for Solar Energy and it is cheaper, substantially, than coal or gas electricity.
An important caveat: One factor that’s bringing down the price of the Macho Springs plant’s electricity is the array of federal and state subsidies going to solar power. For example, New Mexico’s state production tax credit will add something between 2.5 to 2.7 cents per kilowatt-hour to the system’s revenue for its first decade. There’s also a 30 percent federal investment tax credit to consider. Add all that in and it brings Macho Springs’ price alongside that of comparable projects in California, which generally clock in a bit above 8 cents per kilowatt-hour — though still lower than Bloomberg’s average price for new coal plants.
An important caveat: One factor that’s bringing down the price of the Macho Springs plant’s electricity is the array of federal and state subsidies going to solar power. For example, New Mexico’s state production tax credit will add something between 2.5 to 2.7 cents per kilowatt-hour to the system’s revenue for its first decade. There’s also a 30 percent federal investment tax credit to consider. Add all that in and it brings Macho Springs’ price alongside that of comparable projects in California, which generally clock in a bit above 8 cents per kilowatt-hour — though still lower than Bloomberg’s average price for new coal plants.
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