Mexico Solar Compensation Schemes 2026

Why the Choice Matters

Many Mexican solar EPCs present a single financial model to clients without explaining that there are three different ways the surplus energy can be compensated. This is a missed opportunity. The right compensation scheme can improve payback by 6 to 18 months depending on the client's consumption pattern and the time of day they use most electricity. The wrong scheme can make a project look worse than it is.

The three schemes differ primarily in how surplus energy is valued. Under some schemes, surplus is credited at the full retail rate. Under others, it is credited at a lower generation rate. Under the third, it is sold to CFE at a wholesale rate. For clients who consume most of their electricity during solar generation hours, this distinction matters less. For clients whose peak consumption is in the evening, it can be decisive.

Net Metering — Medición Neta

Under net metering, surplus electricity exported to the CFE grid is credited against future consumption at the same retail rate the client pays to import electricity. The net of imports and exports is calculated on each bill. If the client exported more than they imported in a billing period, the credit carries forward to the next period.

Best for: Clients whose annual solar generation is close to their annual consumption. The credit carries forward so over generation in sunny months offsets consumption in cloudier months. Residential clients and small commercial users with relatively stable monthly consumption profiles.

Limitation: In Mexico, net metering credits have an expiry period — unused credits beyond a certain period may be lost. This makes net metering less suitable for clients who generate significantly more than they consume on an annual basis.

Net Billing — Facturación Neta

Under net billing, the client pays their full consumption from the grid and receives a separate payment or credit for their exported surplus. The credit for the surplus is calculated at a different rate from the import rate — typically the distributed generation generation tariff set by the CRE, which is lower than the retail import rate.

Best for: Commercial clients with moderate surplus generation who want a simpler billing structure. The separation of the import and export bills makes the financial accounting clearer for businesses. Also suitable for clients who want to be paid in cash for their surplus rather than receiving bill credits.

Limitation: Because the export credit rate is lower than the import rate, clients who export large quantities of surplus power earn less per unit than they would under net metering. System sizing should therefore be conservative — aim to cover consumption without creating large surpluses.

Total Sale — Venta Total

Under total sale, all electricity generated by the solar system is exported to the CFE grid. The client continues to buy all their electricity from CFE at the retail rate, but receives a separate payment for everything their solar system generates. The sale price is set at the wholesale electricity market rate via the CENACE market.

Best for: Clients who primarily use electricity in the evening (after solar generation hours) and for whom the value of the energy they would offset during the day is less than what they can earn by selling all of it. Also useful for property owners who want to monetise solar on a commercial building without changing the tenant's electricity supply arrangement.

Limitation: Wholesale electricity prices in Mexico's CENACE market are volatile and can be low, particularly during midday when solar generation peaks and market prices are suppressed by high renewable output across the system. This scheme carries more price uncertainty than the other two.

How to Present the Choice to Clients

The simplest approach: ask the client three questions before building the financial model. First, what time of day do you use most electricity? Second, do you prefer bill savings or a separate cash payment for surplus? Third, how important is price predictability?

Daytime heavy consumers benefit most from net metering. Evening heavy consumers may benefit from total sale if wholesale prices are favourable, or from a well sized net billing arrangement. Clients who value simplicity and predictability typically prefer net metering. Clients who are comfortable with price variation and want cash income prefer net billing or total sale.

Action this week: Build a one page comparison of all three schemes into your standard Mexican solar proposal. Show the expected annual saving or income under each scheme for the client's specific consumption profile. Let the client choose with full information. EPCs who help clients understand the choice win more deals than those who impose a single model.

Frequently Asked Questions

Q1. Can a client switch between compensation schemes after installation?

Yes, but the process involves an application to CFE and may require a waiting period before the new scheme takes effect. The CRE's updated regulations clarify that DG users can request a change in compensation scheme, but changes take effect at the start of the next billing cycle after approval. For clients who are initially uncertain which scheme is best, it is worth spending an extra few minutes at the proposal stage modelling their expected surplus under different scenarios. Getting it right from the start avoids the administrative hassle of switching and any period where the client is on a suboptimal scheme.

Q2. What happens to net metering credits if they expire?

Under Mexico's net metering rules, credits for surplus energy carry forward from month to month within a rolling 12-month window in most CFE tariff categories. Credits that remain unused at the end of the annual reset period expire without cash payment. This means clients who over size their system relative to their consumption and consistently generate large surpluses will effectively donate excess generation to CFE. This is one of the most important reasons to size a solar system based on actual consumption data rather than maximum roof capacity. A system sized to 80 to 90% of annual consumption under net metering is typically more financially efficient than one that maximises installed capacity.

Sources

• CRE Mexico — gob.mx/cre — Updated DG compensation scheme regulations April 2026 — net metering, net billing, total sale definitions
• CFE — cfe.mx — Distributed generation tariff schedules and compensation rates
• Solergy Mexico — solergy.mx — Mexico solar compensation schemes practical guide for EPCs 2025 to 2026