Last Updated on February 8, 2024 by Mary Pressler
The Texas-New Mexico Power Company (TNMP) serves more than 230,000 customers throughout the state of Texas. TNMP runs various incentive programs that target energy efficiency and renewable generation upgrades, and there are dedicated programs for each customer category: residential, commercial, educational and government.
TNMP manages five separate incentive programs for the residential sector. Three of them target customers with specific profiles, while the other two are for air conditioning and lighting, respectively.
The High-Performance Homes program establishes a set of performance guidelines, and new homes that are compliant become eligible for financial incentives. Alternatively, new homes can meet ENERGY STAR certification requirements to be eligible. It is important to note that the incentive is provided to construction companies approved by TNMP, not directly to homeowners. If you are planning to build a new home and would like to benefit from this incentive, you must contact an approved contractor.
The Residential & Hard-To-Reach Standard Offer is for existing homes and provides incentives for energy efficiency upgrades that save energy and contribute to peak demand reduction. Like in the High-Performance Homes program, incentives are provided to approved contractors, who in turn offer you a price discount.
As implied by its name, the Low Income Program targets households below 200% of the federal poverty line, and delivers incentives of up to $6,500 per home. The incentive is provided through approved non-profit organizations, and the list of eligible upgrades includes energy-saving lighting, ENERGY STAR refrigerators and air conditioning units, solar screens and insulation.
There are two programs that target specific appliances, and they are offered to customers of participating Retail Electricity Providers (REPs). The COOLSAVER Program offers free air conditioner and heat pump tune-ups, which can improve their efficiency by up to 27 percent. On the other hand, the EFFICIENCY CONNECTION program offers discounted LED products that can be purchased online.
TNMP manages two incentive programs for the commercial sector. The Commercial Solutions Program is for businesses with an electricity demand above 100 kW, while the Open Program is for small business clients with a demand of up to 100 kW.
The Commercial Solutions Program offers incentives that vary according to the type of upgrade, and they are composed of two parts. A portion of the incentive is calculated based on demand reduction (kW), and another portion is based on energy savings (kWh). The following table summarizes the incentives available through this program, and they are available for all commercial customers with a demand above 100 kW and a TNMP power meter.
| Type of Upgrade | Power Savings Incentive (USD / kW) | Energy Savings Incentive (USD / kWh) |
|---|---|---|
| Lighting other than LED | $100 / kW | $0.02 / kWh |
| LED Lighting | $150 / kW | $0.03 / kWh |
| HVAC (Direct Expansion) | $125 / kW | $0.03 / kWh |
| Chillers | $150 / kW | $0.03 / kWh |
| Motors | $150 / kW | $0.03 / kWh |
| Solar Photovoltaic Power | $225 / kW | $0.05 / kWh |
| Variable-Frequency Drives (VFD) | $100 / kW | $0.02 / kWh |
| Window film | $50 / kW | $0.02 / kWh |
| Roofing | $150 / kW | $0.03 / kWh |
| Other upgrades | $150 / kW | $0.03 / kWh |
Since solar power generates energy rather than reducing consumption, its incentive is calculated based on installed capacity and yearly generation. It is also important to note that incentives for motors, VFDs, window films and roofing only apply in retrofit projects.
The Open Program is for small business clients with a demand of up to 100 kW, and it offers incentives for lighting and refrigeration upgrades. The incentive for refrigeration upgrades and integrated LED troffers is $1,100 per kW. All lighting upgrades other than LED troffers are eligible for $500 per kW. The program also offers a free no-obligation lighting assessment for small business clients considering energy efficiency measures.
Of course, you can save more money as a business owner by finding a cheaper electric rate. Quick Electricity offers competitively priced commerical electricity plans in the TNMP service area.
The energy-saving opportunity in government facilities is massive. According to ENERGY STAR, government buildings waste 33% of the energy they use. TNMP has introduced the CitySmart program to address this issue, which offers an incentive of $150/kW and $0.02/kWh, plus technical assistance. Government agencies can also choose to receive reduced technical support in exchange for an incentive increase to $175/kW, through the CitySmart Lite program. The CitySmart and CitySmart Lite programs are available for all government agency buildings with a TNMP power meter.
The energy efficiency issues in US school districts are similar to those found in government buildings, and TNMP created the SCORE program for the education sector. The base incentive rate is like that of the CitySmart program: $150/kW for demand savings and $0.02/kWh for energy savings. However, there are two other versions of the program:
Since 2016, TNMP also introduced a promotional incentive for schools that deploy solar photovoltaic systems: $225/kW and $0.05/kWh. The SCORE program is available for all academic institutions with a TNMP power meter, including school districts, private schools, community colleges and universities.
Although TNMP does not have a dedicated incentive program for nonprofit organizations, they can apply for commercial incentives based on their electricity demand: the Commercial Solutions Program is available for nonprofit organizations with a demand above 100 kW, while those with a demand of 100 kW or less can apply for the Open Program. In addition, organizations that perform charitable work related with education can apply for the SCORE incentives as well.
In addition to its incentive programs, TNMP has a load management program that rewards demand reduction. This program is open for all commercial customers, government agencies, educational institutions and nonprofit organizations. During periods of high demand, TNMP may ask participants to curtail their load voluntarily, where the notification is provided at least 30 minutes in advance.
The load management program runs from June to September between 1PM and 7PM,which is when power grid load reaches its highest demand in the year due to the use of air conditioning equipment. Participants agree to reduce their load for up to 18 hours spread through a maximum of 5 events.
TNMP customers have access to generous incentives for energy efficiency upgrades and solar power, which make these measures more attractive from the financial standpoint. However, reviewing the requirements before proceeding with a project is highly recommended to make sure it will be eligible for any applicable incentives.