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Is solar the best option to reduce your PNM electricity bill?

What makes CutMyBill better than other solar cost and savings calculators for PNM customers?

There are three key reasons that our PNM solar cost and bill savings calculator is far better than any other solar calculator or solar estimate website on the net for PNM customers;

  • Firstly, whilst most solar panels calculators are really good at forecasting the electricity production you can get from installing solar panels for your home (because they all rely on the solar production data) most of them just use a single generic state wide unit cost for electricity in their calculations. Our PNM solar cost and bill savings calculator actually uses our database of each of the available PNM electric rates plans to use more specific electricity cost data. Therefore we can generate much more accurate solar savings analysis.
  • The second reason is that we use DOE (Department of Energy) electricity usage patterns for the PNM service territory, and some very basic questions we ask you about your home to estimate how you use power over the course of a day and the seasons of the year. This allows us to accurately forecast solar savings where time of use electricity plans are available to you. We estimate your electricity usage for each hour of the year and then overlay the known production of solar panels in your area for each hour of the year. Without this level of detail solar panel cost and savings calculators on are inaccurate; and
  • Lastly, before we even consider solar savings, we look for any savings that can be achieved simply by swapping to a cheaper available PNM rate plan. Our software looks for any available PNM rates plan that works our cheaper for your estimated usage pattern. Generally speaking savings from swapping to a cheaper PNM rates plan are only available to those who have larger monthly electric bills but given it only takes a phone call to achieve these savings it is by far the quickest and easiest bill cutting option where it is possible.
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Will installing a solar power system or swapping rate plans save me the most on my monthly PNM payment?

There are almost always far greater cost savings to be obtained from installing solar panels than swapping rates plans but this doesn't mean possible savings from swapping rate plans should be ignored. The other reason we search for your cheapest rate plan is that to forecast total possible savings you could get on your bill you need to take into account both savings that may be available from swapping to the cheapest rate plan and also savings that come from swapping your generation source for some of your power usage to your own solar power.

Compare savings from swapping rate plans to solar savings


How accurate is the CutMyBill estimate of my power usage pattern?

The CutMyBill electricity usage profile estimator is a key part of the technology of why CutMyBill can forecast solar and bill swapping savings so accurately without requiring you to enter your kilowatt hour electricity usage for each month of the year or to upload 12 months worth of power bills.

The way we do this is we use electricity use profiles collected by the Department of Energy for each building type at each weather station across the PNM service territory. Some of the characteristics of your home such as your average monthly power spend and the square footage of your home are used to refine this analysis.

This gives a fairly accurate estimate but it is not an exact estimate. The best way to get an exact estimate of your solar savings and whether or not there are possible savings from swapping rate plans is to speak to one of your local solar companies. Whilst solar companies are experts in solar they also become experts in knowing the cheapest rate plans (both before and after solar) from their local utility companies.

Estimate my power usage pattern over a day and over the seasons of the year


Three best ways to cut your PNM electric bill

Did you know you can cut your home's energy bill by using flashlights instead of overhead lights? Did you know you can cut your energy bill by doing a home energy audit each hour?

Yes, those are silly questions. Fortunately, you don't need to sacrifice comfort to cut your energy bill by 20% or more. And it could be quick and easy to do.

We hope this article helps you make a solid game plan to cut your PNM energy bill. If you haven't already, we suggest you first read our article on how your energy bill works.

Introducing the Morgan family

To illustrate ideas, we'll show numbers based on typical energy usage for a single-family home in Albuquerque, NM (the most populous city in PNM's territory).

Meet our typical family from Albuquerque: the Morgan family. If you look closely at their picture, you'll see that the dad is also reading this article. The mom and daughter are saving energy by just pretending their tablets are on.

family on couch with devices

Let's see how the Morgan family cut their energy bill by 21%, or $25 per month.

What's a "time of use" rate plan?

As we wrote in the How Your Energy Bill Works article, you could voluntarily switch to PNM's time-of-use rate plan.

With time of use, the energy rate varies over the course of the day. How much money you save (or lose) on the time-of-use rate plan depends on when you use energy — and how your energy usage pattern matches up with PNM's rate pricing.

Why does PNM offer a time-of-use rate plan?

We could compare the energy grid to the freeway — it can be smooth sailing or bumper-to-bumper depending on the time of day. It's easier and cheaper for PNM to provide energy outside the 8am to 8pm "rush hour traffic," so time-of-use rate plans signal PNM customers to use more of their energy during other hours.

PNM understands that some customers would respond to time-varying rates while some customers wouldn't — the time-of-use rate planis optional for the more price sensitive among us (who take control and cut it).

Find out how much you could save with time-of-use. Get personalized results with the Cut My Bill calculator. It's Free and Easy!


What are the time-of-use rates and time windows?

Here are the rate details for PNM's time-of-use rate plan (code name: 1B):

Plan Name: Residential - Time of Use (1B)
Last Update: February 1, 2018
Fixed Charge: Service Charge: $27.18
Summer (June 1 to August 31)
Rate per kWh
Off-Peak: $0.086
Peak: $0.218
Weekday Times
Off-Peak: Midnight to 8am, 8pm to midnight
Peak: 8am to 8pm
Weekend Times
Off-Peak: All hours
Winter (September 1 to May 31)
Rate per kWh
Off-Peak: $0.086
Peak: $0.175
Weekday Times
Off-Peak: Midnight to 8am, 8pm to midnight
Peak: 8am to 8pm
Weekend Times
Off-Peak: All hours

Who's the time-of-use rate plan best for?

Five of the twelve expensive weekday peak-time hours are in the afternoon (the peak window is 8am to 8pm), so it's better for families that are typically at work and school in the afternoons. It's not as good for those who work from home, or stop by for a leisurely lunch and siesta.

Should we switch to the time-of-use rate plan?

Let's figure out whether the Morgan family would save money on the time-of-use rate plan — which should help you determine for your home. This starts with estimating how much of their energy they're likely to use during the expensive peak window (the more they use during peak, the higher their time-of-use bill).

While many utilities now offer their customers hour-by-hour historical energy data (commonly called interval data or Green Button data), PNM doesn't. If available, we'd use this historical energy data to confidently estimate the Morgan family's energy bill on the time-of-use rate plan. We'll instead base our estimate on the energy profile of a typical family in Albuquerque. (Consider asking PNM to step up their game and make your historical hour-by-hour data available to you: 888-342-5766 or PNM contact form.

Let's consider the Morgan family's energy usage during summer weekdays, in the context of the time-of-use rate plan.

They use about the same energy during the expensive afternoon hours and discounted off-peak hours. So they aren't an ideal candidate for time of use.

It gets more complicated, because the time windows are different in the winter and on weekends — and the Morgan family uses energy differently across the week and year.

Here's how the math works out: The Morgan family's average monthly bill on their current rate plan (code name: 1A) is $115. Their average bill on the time-of-use plan (1B) would be…drum roll…$137.

…Hmm, the Morgan family would pay an extra $23 for energy on the time-of-use rate plan. We'll still switch them to time of use, because it'll work out better after upcoming energy changes.

Find out how much you could save with time-of-use. Get personalized results with the Cut My Bill calculator. It's Free and Easy!


Is it worth adjusting our energy habits?

Time-of-use rate plans give you more control over your energy bill. You can save more money if you're willing to adjust how you use energy. For example, you could set an alarm for 3am to get up and run the dishwasher. Just kidding. Let's consider a reasonable way to adjust energy, and decide if it's worthwhile.

Recall that on the time-of-use rate plan (1B), the summer weekday peak window (with the most expensive energy) is from 8am to 8pm. The Morgan family runs the dishwasher and clothes washer/dryer around 6pm. At the peak rate of 22¢, the combined cost for cleanliness is $19 per month (not including water heating).

After reading this article, the Morgan family sets the washing machines to start at 8pm. The new charge is $7.55 per month — a $11 bill reduction. Is it worth it? It is for the Morgan family!

Hello, "Smart Home"

The idea behind a Smart Home is that your internet-connected home appliances can be partially or fully automated to reduce your energy bill while also improving comfort. The dishwasher knows when the off-peak window starts and turns itself on then, the air conditioner learns your preferences and patterns to avoid over-cooling, etc.

While the Smart Home is clearly the future, it isn't quite the present — we're looking forward to Smart Home devices playing better together (in other words, better technical standards).

How do we switch to the time-of-use rate plan?

To change to the time-of-use rate plan or get PNM's take on it, you can call them or write to them: 888-342-5766 or PNM contact form.

Is it worth using less energy?

We won't rally behind former President Jimmy Carter and tell you to put on a sweater and turn down the thermostat. We'd rather not see our breath in the living room. But it's probably worth taking 5 minutes to consider whether energy is wasted in your home (in other words, is energy used that doesn't improve your family's well-being).

The Morgan family children have been politely asked to turn off lights when leaving rooms about 17 trillion times. They're generally respectful, but for whatever reason this one doesn't stick. How much money would the Morgan family save if the children always turned off their lights?

Three 30-watt lights get left on in empty rooms 2 hours per day on average. That's 5.5 kilowatt-hours per month (3 x 30 x 2 x 30.4) — which costs 86¢. Is it worth continuing the effort (or trying a smart-home solution)? Nope. The parents will let this one go for now.

What about energy efficiency?

There might be one or more basic energy-efficiency investments you can make that'd cut your energy bill while not reducing comfort or adding day-to-day complexity.

The Morgan family got a new refrigerator a decade ago, and plugged in their previous 1990s-era fridge in the garage (for those three sports drinks). Refrigerator efficiency has come a long way since the 1990s. In fact, their garage fridge uses over twice as much energy as their new Energy Star fridge. It'll cost them $13 per month to run it on their new time-of-use rate plan (or $11 per month on the standard rate plan).

Should they replace the old garage fridge with a basic $500 Energy Star fridge? They'd save $7.11 per month on their energy bill, but the related financing payment would be $9.55 per month ($500 borrowed, 5-year term, 5.5% interest). Their net loss in the first month would be $2.44. With the financing cost, the new fridge would pay for itself in 7 years (followed by years or decades of pure bill savings).

The Morgan family decided they don't need even a second fridge. That's a $13 monthly bill reduction!

The Morgan family's game plan so far

The Morgan family has felt the pain of high energy bills for years. Thanks to this article (we have no shame), they're now ready to take control and cut it. Sounds like fun!

Their current average monthly bill is $115. Here's their game plan:

  • 1. Switch rate plans
  • Switch to the time-of-use rate plan (code name: 1B).
  • When: Right after reading this article and making their game plan.
  • Bill Increase: $23
  • New Monthly Bill: $137
  • 2. Adjust energy usage
  • Run the dishwasher and laundry machines during off-peak hours.
  • When: Once they switch rate plans.
  • Bill Reduction: $4.07
  • New Monthly Bill: $133
  • 3. Reduce energy waste
  • Unplug the garage fridge (and schedule a recycling-center pick up time).
  • When: This week.
  • Bill Reduction: $10
  • New Monthly Bill: $123

One week later, the Morgan family's new monthly bill is $123. Hmm…they're now spending an extra $8.52 per month on energy. Solar energy to the rescue (which will be more valuable under the time-of-use rate plan).

Yeah Suzy, what about solar energy?

"Hmm…it's probably too expensive." The Morgan family wanted to at least consider it, so they connected with a few local solar installation companies through Cut My Bill. They were happy to hear that solar energy is affordable — in fact, it's less than half the cost it was just ten years ago.

They learned that 18 solar panels would fit nicely on the sunniest part of their roof (at 250 watts per panel, that's a 4.5 kW system). Their solar system would bring their average monthly energy usage from 790 kWh down to 309 kWh. And it'd bring their monthly PNM energy bill from $123 down to $33.

A federal tax credit would cover 26% of the solar system's cost.

They were pleasantly surprised to hear that their energy bill savings from solar would be higher than the net payment on a home-equity loan used to purchase the solar system ("net" because the loan interest is deductible). In other words, solar would start saving them money immediately. Their $33 new energy bill plus a $57 monthly net loan payment would put them at a $90 per month net energy cost (vs. $123 before solar).

With the loan, their solar energy system would save them $33 per month. That's a 27% bill reduction over their energy bill after the other changes! And their savings would increase over time because energy rates go up while the loan payment doesn't.

The Morgan family totally went solar.

How much can you save by swapping your PNM rate plan


Morgan family conclusion

If they took no action, the Morgan family would be paying $115 per month for energy. The rate plan change and energy adjustments got their bill down to $123 per month. With solar energy and the loan payment, the Morgan family's new net energy cost is $90 per month. All together, they cut their monthly energy cost by 21%, or $25.

The Morgan family is feeling good! Here they are monitoring their real-time solar production and utility energy usage.

family on lawn with devices

Energy bill reductions = tax-free income

That $25 of extra cash is actually worth $34. What? The Morgan family has to pay income tax on money used for personal expenses (including their energy bill). Since they no longer need to pay $32 in taxes on the $82 they're not giving PNM, that $82 is essentially worth $114 (an extra $32). After the solar loan payment, their net tax savings is $9.56. You're a champion for getting through this paragraph.

The simple take home is that, dollar for dollar, energy bill savings (money not spent) is more valuable than the return on conventional investments such as stocks and treasury bonds (taxable income).

Your game plan

We hope this article convinced you that you can have your cake and eat it too — you can save money, improve your family's well-being, and help out the planet. We wish you the best with your upcoming power moves (pun intended).

Click HERE to see how much you can save by and installing solar panels. The Cut My Bill calculator is free and easy.

Find more about Public Service Company of New Mexico (PNM) electric rate plans.