The original incentive
If you produced 500 kWh and consumed 400, the extra 100 kWh sat as a credit at the DAC rate — up to about $0.35 USD per kWh in BCS. It was similar to net metering programs that existed in California before NEM 3.0.
Mirasol · Los Cabos
Net metering in Mexico no longer works the way solar companies are quoting it.
For years, solar quotes in Los Cabos assumed every kilowatt-hour you produced was worth exactly what you paid CFE. Mexico's March 2025 energy reform ended that. Surplus energy exported to the grid now earns a fraction of what you pay per kWh. Solar still makes economic sense — but only if the quote is built on what you actually consume, not what the panels produce.
Quick view
Solar without net metering in Los Cabos without losing the thread.
Mexico's March 2025 energy reform eliminated 1:1 net metering with rollover. We explain what changed, what it means for solar savings in Los Cabos, and how to get a quote that reflects reality.
Why it encouraged oversizing
With credits valid for 12 months, seasonal surplus from winter could offset high summer AC bills. Quotes were built around peak production, not self-consumption during solar hours.
How quotes were calculated
The standard method was: annual kWh from your bill divided by estimated system production, with all surplus credited at retail rate. That method is no longer valid — and quotes built on it overstate your savings.
The reform in plain terms
What was worth $0.35 USD per exported kWh is now worth $0.07–$0.14 USD. The 12-month credit rollover is gone. If you export power to the grid, it earns very little.
What it was
1:1 net metering meant every kilowatt-hour you produced earned a credit at the retail rate.
Under net metering as it existed in Mexico through early 2025, every kWh your panels sent to the CFE grid was credited to your account at the same rate you pay as a consumer. Credits rolled forward for up to 12 months and could offset future bills. That made oversized systems attractive — produce more than you use now, bank the credit for later.
The original incentive
If you produced 500 kWh and consumed 400, the extra 100 kWh sat as a credit at the DAC rate — up to about $0.35 USD per kWh in BCS. It was similar to net metering programs that existed in California before NEM 3.0.
Why it encouraged oversizing
With credits valid for 12 months, seasonal surplus from winter could offset high summer AC bills. Quotes were built around peak production, not self-consumption during solar hours.
How quotes were calculated
The standard method was: annual kWh from your bill divided by estimated system production, with all surplus credited at retail rate. That method is no longer valid — and quotes built on it overstate your savings.
What changed
Mexico's March 2025 energy reform replaced net metering with a self-consumption model.
On March 18, 2025, Congress approved the Sheinbaum administration's energy reform, amending the Electric Industry Law. The 1:1 net metering scheme was replaced with an autoconsumo (self-consumption) framework: surplus energy exported to the grid is now purchased by CFE at the Local Marginal Price (PML), typically 20–40% of what residential users pay. Unlike California's NEM 3.0 debate — which preserved some export value — Mexico eliminated the 1:1 scheme outright.
The reform in plain terms
What was worth $0.35 USD per exported kWh is now worth $0.07–$0.14 USD. The 12-month credit rollover is gone. If you export power to the grid, it earns very little.
Local Marginal Price vs DAC rate
The PML is the hourly wholesale market price at which CFE buys power — it fluctuates by node, time of day, and system conditions. In BCS it has historically represented 20–40% of the DAC retail rate that residential users pay.
Does this apply in Baja California Sur specifically?
Yes. The reform amends national law. CFE BCS follows the same rules as the rest of the country, though the specific PML values differ because BCS operates on an isolated grid separate from the national system.
What it means
The only number that matters now is how much solar you consume directly while the sun is up.
Without 1:1 credits, exporting power to the grid adds very little savings. Direct self-consumption — using solar energy in the moment it's produced — is where the value is. For a typical Los Cabos home without a battery, that self-consumption rate is around 45%. With a battery, it rises to roughly 85%.
The only number that matters now
If your system produces 1,000 kWh per month but you only consume 450 kWh during solar hours, your real savings are on those 450 kWh. The exported surplus earns very little under PML pricing.
What a typical Cabo home saves
A DAC household with 1,500 kWh bimonthly consumption and a correctly sized 5 kW system can save $200–$325 USD per month, depending on consumption profile, daily schedule, and whether there is a battery.
Why competitor quotes may be overstated
Many solar companies still calculate savings as if 100% of production is worth the DAC rate. Under the new framework, that method overstates savings by 30–55% for homes without batteries. Ask any company to show you the self-consumption vs export split in their calculation.
Configuration
Two configurations make sense under the new rules.
With exports worth so little, the design question shifts from how much to produce to how much you can consume directly. The right configuration depends on whether you want to start immediately or wait for full CFE interconnection.
Zero export — nothing sent to the grid
The inverter is configured to limit production to instantaneous household consumption. Nothing is exported, so no CFE interconnection paperwork is required to begin operating. This is the default recommendation for new installations in BCS while interconnection is pending, or when daytime consumption justifies the system size.
Bidirectional meter + interconnection
With the correct meter and a completed interconnection application, any surplus is billed at PML instead of being ignored or charged as consumption. This is the correct long-term setup, but CFE BCS interconnection approval in the isolated grid can take several months.
FAQ
What to clarify before quoting.
Was net metering completely cancelled in Mexico?
Yes. The March 2025 energy reform eliminated 1:1 net metering with 12-month credit rollover. What now exists is a self-consumption framework where exported surplus is settled at the Local Marginal Price — in practice, 20–40% of what you pay as a DAC consumer.
Is solar still worth it in Los Cabos without net metering?
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 even 45–50% direct self-consumption delivers significant monthly savings. The key is not to oversize the system.
How do I know if my solar quote is based on real savings?
Ask the company to show you two numbers separately: kWh of direct self-consumption and kWh exported to the grid. Real savings come primarily from the first number. If they are adding both at the full DAC rate, the quote is using the old method and the savings estimate is overstated.
What is Local Marginal Price and why does it matter?
Local Marginal Price (PML) is the price at which CFE purchases power in the wholesale electricity market. It varies by hour, grid node, and system conditions. In BCS it has historically averaged $1.40–$2.80 MXN per kWh, compared to $6–7 MXN paid by DAC users. That gap explains why exporting energy no longer has the same value as consuming it directly.
Does this apply in Baja California Sur specifically?
Yes. The reform amends the national Electric Industry Law. BCS has no exception. The only difference is that the specific PML values vary because BCS operates on an isolated electrical system, separate from the national grid.
How does this compare to net metering changes in California?
California's NEM 3.0 (2023) reduced export compensation significantly but retained a time-of-use export rate structure — exports still have some value tied to grid peak hours. Mexico's 2025 reform was more abrupt: the 1:1 scheme was eliminated outright and replaced with wholesale PML pricing, which provides much less compensation for residential exports.
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.
BASHAM — 2025 Energy Reform Regulations
Legal analysis of the March 2025 energy reform, including changes to distributed generation and net metering.
Energía Estratégica — Distributed generation without net metering
Coverage of the reform's impact on distributed generation: elimination of net metering and new permit thresholds.
Norton Rose Fulbright — Mexico power sector reform March 2025
Analysis of the new laws enacted for the Mexican power sector in March 2025.
DM Solar — Autoconsumo vs net metering: CFE rule changes
Practical explanation of the difference between self-consumption and net metering under the new CFE regulatory framework.
Next step
Start with the bill, not a promise.
With a recent CFE bill we can separate usage, tariff, charges, and solar potential before deciding whether to move forward.