Residential solar panels in Los Cabos under clear desert sky

Mirasol · Los Cabos

The bidirectional meter still exists. What changed is how you should value surplus solar.

Short answer: yes, the bidirectional meter still exists, and CFE still publishes net metering, net billing, and total-sale contract models for distributed generation. What you should not do in 2026 is quote a system as if every exported kWh is guaranteed to earn the same value as a kWh you avoid buying. Mexico's 2025 Electricity Sector Law raised the distributed-generation threshold to below 0.7 MW and requires compensation methodologies based on economic value.

Quick view

Bidirectional meters, net metering, and CFE solar exports without losing the thread.

What still exists and what changed under Mexico's 2025 Electricity Sector Law: bidirectional meter, net metering, net billing, total sale, and distributed generation below 0.7 MW.

Bidirectional meter

It did not disappear. For grid-connected distributed generation, correct metering separates energy received from CFE and energy delivered to the grid. Without that metering, an exporting system can create bad readings or failed paperwork.

Net metering

It still appears in CFE documentation as a compensation option. For a DAC household, it is usually more attractive than selling all energy because the strongest economic move is reducing purchases of expensive kWh.

Net billing and total sale

Under these models, energy consumed and energy sold are not treated the same way as net metering. You should expect a sale compensation value that can be lower than the final tariff you pay as a user.

The old practical threshold was 0.5 MW

The previous distributed-generation framework referred to plants below 0.5 MW. The current law uses below 0.7 MW. This matters more for businesses, small hotels, condos, and midsize projects than for a typical home.

What still exists

CFE still recognizes three contract models for energy delivered to the grid.

CFE's interconnection contracting guide lists three models: Net Metering, Net Billing, and Total Energy Sale. In net metering, the customer consumes and generates under the same supply contract; in net billing, consumption and energy sold are handled separately; in total sale, the generator sells all production.

Bidirectional meter

It did not disappear. For grid-connected distributed generation, correct metering separates energy received from CFE and energy delivered to the grid. Without that metering, an exporting system can create bad readings or failed paperwork.

Net metering

It still appears in CFE documentation as a compensation option. For a DAC household, it is usually more attractive than selling all energy because the strongest economic move is reducing purchases of expensive kWh.

Net billing and total sale

Under these models, energy consumed and energy sold are not treated the same way as net metering. You should expect a sale compensation value that can be lower than the final tariff you pay as a user.

What changed

The new law raised the distributed-generation limit and focuses compensation on economic value.

The Electricity Sector Law published on March 18, 2025 replaced the 2014 Electric Industry Law. For rooftop solar, the clearest national change is that power plants below 0.7 MW are exempt generators and do not require a generation permit. Article 27 also directs CNE to issue contract models and compensation methodologies that reflect economic value for the supplier and contain no unauthorized subsidies.

The old practical threshold was 0.5 MW

The previous distributed-generation framework referred to plants below 0.5 MW. The current law uses below 0.7 MW. This matters more for businesses, small hotels, condos, and midsize projects than for a typical home.

Export sales should not be the core ROI

The law does not say every residential surplus kWh must be paid at the DAC retail rate. It says compensation must be calculated by a regulated methodology. A serious quote should not present selling energy to CFE as the main business case.

The 2026 contract update does not replace residential GD

CNE's March 17, 2026 agreement updated the interconnection/connection contract model for power plants, storage systems, and load centers, but it explicitly excludes distributed generation below 0.7 MW, which must use the applicable GD model.

What it means

The number that protects your savings is self-consumption.

Even when net metering is available as a contract model, the prudent design does not depend on selling energy. The strongest savings come from using your own solar while it is produced or storing it for afternoon and evening use. For a typical Los Cabos home without storage, direct self-consumption and exported surplus should be modeled separately.

Separate three numbers

Ask for kWh directly self-consumed, kWh exported, and the CFE charges that remain. If a proposal values all solar production at your DAC rate, ask for the separate export assumption.

What a typical Cabo home saves

It depends on bill, tariff, usage schedule, roof, and storage. A DAC home can still be a strong solar case even without exporting for revenue, because every self-consumed kWh avoids buying expensive electricity.

How to review any solar quote

The problem is not mentioning a bidirectional meter or net metering. The problem is blending self-consumption and exports as if they always have the same value. Always ask for the assumed self-consumption percentage, exported kWh, and surplus treatment.

CFE bill

What each component means when we estimate the bill with panels.

A serious quote should read the bill as a set of components, not a single number. Solar production reduces the variable energy portion first; other charges can remain even when the system covers a large share of usage.

Current bill

This is the monthly or bimonthly total before solar. We use it as the comparison point, but we do not assume the full amount disappears after installing panels.

Remaining energy

These are the kWh you would still buy from CFE after using estimated solar production. Under DAC, this line often carries the savings because each avoided kWh has high value.

Fixed charge, VAT, and public lighting

The fixed charge is the basic service cost. VAT is calculated on energy and fixed charge. Public lighting, when present, is municipal and can remain even after consumption falls.

Surplus exports

If the system exports, correct metering separates energy received from energy delivered. The applicable contract then defines compensation. That is why a clear quote should not hide exports inside the same self-consumption calculation.

Implications

The recommendation should separate self-consumption, exports, battery, and CFE paperwork.

The practical conclusion for Los Cabos is not to install less solar out of fear of reform, nor to install more panels hoping to sell leftovers. It is to design around the bill, usage schedule, available roof, and interconnection strategy.

More panels

They make sense when there is daytime load, A/C, pool pumping, EV charging, battery storage, or a real plan to use that energy. Otherwise, surplus should be modeled separately.

Battery

Storage increases self-consumption by moving solar energy into the afternoon, evening, or backup window. In BCS it can also matter for continuity, not only savings.

Rental or partial-use home

Occupancy changes the timing and volume of consumption. For a vacation rental, a smaller first stage or a battery-backed design may fit better depending on seasons and loads.

Site visit

The site visit confirms shading, usable roof, main loads, panelboard, meter, and paperwork. That is where the design chooses more capacity, battery, zero export, or formal interconnection.

Configuration

Two configurations make sense under the new rules.

The design question is not only how many kWh the roof can produce, but what happens to those kWh hour by hour. In Los Cabos, designing for self-consumption, proper paperwork, and correct metering beats oversizing for surplus sales.

Zero export — nothing sent to the grid

The inverter is configured to limit production to instantaneous household consumption. Nothing is exported, so the system avoids operating with incorrect metering while interconnection is pending or not part of the design. It works best when there is enough daytime load or battery storage.

Bidirectional meter + interconnection

With completed paperwork, consumption and delivery to the grid are measured correctly under the applicable contract: net metering, net billing, or total sale. This is the formal setup for systems that can export.

FAQ

What to clarify before quoting.

Was net metering completely cancelled in Mexico?

Do not state it that way. CFE still publishes Net Metering as one of its compensation models. What changed is the legal framework: the 2025 Electricity Sector Law raised the distributed-generation threshold to below 0.7 MW and requires compensation methodologies based on economic value. In a quote, the prudent assumption is not that every surplus kWh will be paid like retail energy.

So did the bidirectional meter disappear or stop mattering?

No. It still exists and is still the correct metering setup when a CFE-connected system can export energy. The meter measures energy received and delivered; the contract determines how those flows are compensated. Do not confuse the physical meter with the export-credit economics.

Is solar still worth it in Los Cabos if surplus exports pay less than retail?

Yes, provided the quote is based on actual self-consumption rather than gross production. For DAC users in Los Cabos, the per-kWh rate is high enough that direct self-consumption can deliver meaningful monthly savings. The key is not to oversize the system around surplus sales.

How do I know if my solar quote is based on real savings?

Ask the company to show you direct self-consumption kWh, exported kWh, assumed contract, and CFE charges that remain. If they add self-consumption and exports at the full DAC rate without explaining the contract, the savings estimate can be too high.

What is Local Marginal Price and why does it matter?

Local Marginal Price (PML) is a nodal price in the wholesale electricity market. It matters when a sale or settlement scheme uses a market reference. For homeowners, the practical point is simpler: self-consuming a kWh avoids buying it at the final tariff; selling surplus can have a lower value and depends on the contract.

Does this apply in Baja California Sur specifically?

Yes. The Electricity Sector Law is national, and BCS has no exception to the distributed-generation threshold. The local difference is operational: BCS runs on an isolated electrical system, so circuit capacity and interconnection handling can matter more in practice.

How does this compare to net metering changes in California?

California's NEM 3.0 is a separate U.S. tariff structure. Mexico should be explained from CFE and LSE documents: CFE still lists net metering, net billing, and total sale, while the LSE 2025 requires regulated compensation methodologies based on economic value. Do not copy California-style assumptions into a Cabo quote.

Sources

External sources used as context.

These sources help explain regional solar and CFE context. A final property quote still depends on the bill, roof, and technical visit.

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