New Mexico Has the Nation’s Best DER Interconnection Policy: Report

Why It Matters

Streamlined interconnection accelerates solar and storage deployment, lowering costs and bolstering grid reliability while easing regulator and utility pressure on electricity rates.

Key Takeaways

• New Mexico earned an “A” for DER interconnection, top of nation
• Report grades 20 states; 80% scored C or lower
• IEEE 1547‑2018 alignment recommended for NM’s voltage and power‑quality screens
• Texas and Georgia still lack streamlined interconnection rules
• Scorecard drives policy reforms for distributed solar and storage

Pulse Analysis

The "Freeing the Grid" scorecard, now in its first update since 2023, provides a granular benchmark for how states manage the interconnection of distributed solar and storage. By scoring policies across ten categories—ranging from review timelines to data transparency—the analysis offers regulators a roadmap to cut red tape and reduce hidden fees that have traditionally slowed DER adoption. As utilities grapple with rising demand from data centers and climate‑driven reliability concerns, the report’s emphasis on uniform, technology‑agnostic rules resonates across the energy sector.

New Mexico’s "A" rating sets a clear example of best‑practice implementation. The state’s robust storage interconnection framework, frequent public reporting of queue status, and adherence to IEEE Standard 1547‑2018 give developers confidence that projects will move swiftly from application to operation. Nonetheless, the report flags gaps: voltage and power‑quality screening still diverge from the latest IEEE guidelines, and there is no formal ombudsman to mediate disputes. Addressing these issues could push New Mexico from a leader to a benchmark for other jurisdictions seeking to replicate its efficiency.

For investors and developers, the scorecard signals where policy risk is lowest and where market opportunities may emerge. States stuck at "D" or "F" grades—such as Texas, Georgia, and several Mountain West jurisdictions—present both challenges and upside potential if they adopt streamlined rules. As federal tax incentives wane, state‑level interconnection reforms become the primary catalyst for continued growth in distributed clean energy, making the "Freeing the Grid" findings a critical reference for strategic planning.