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Self supply, distributed generation, storage and clean energy certificates in Mexico

Last verified: 2026-10-26 · Status: Changing

Companies can generate their own power in Mexico: below 0.7 MW with no permit as distributed generation, and from 0.7 MW as self supply with a CNE permit, simplified for interconnected plants of 0.7 to 20 MW. Surplus from interconnected self supply may only be sold to CFE or injected without payment, and intermittent plants that inject must bring their own storage backup or pay CFE for it. Stand alone batteries of 0.7 MW or more need a CNE storage permit, and suppliers, qualified market users and self supplied users must meet clean energy certificate obligations, with fines of 6 to 50 UMA for each missing certificate.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Legal conversions in Mexico use the Banxico FIX, which differs slightly. Conversions are for orientation only. Fines set in UMA use the 2026 daily UMA of MXN 117.31 published by INEGI in the DOF of 9 January 2026.

Key facts

Maximum capacity of distributed generation (exempt, no permit)	0.7 MW (below)LSE arts. 19 and 25, as of 2026-10-26 · in force
Upper capacity for the simplified interconnected self supply permit	20 MWLSE art. 30, as of 2026-10-26 · in force
Stand alone storage capacity from which a CNE storage permit is required	0.7 MWReglamento LSE art. 193, as of 2026-10-26 · in force
Validity of a clean energy certificate	30 monthsLSE art. 146, as of 2026-10-26 · in force
Minimum fine per missing clean energy certificate	6 UMALSE art. 184, section IV, as of 2026-10-26 · in force
Maximum fine per missing clean energy certificate	50 UMALSE art. 184, section IV, as of 2026-10-26 · in force

The rule

1. Distributed generation below 0.7 MW. Plants under 0.7 MW interconnected to a distribution circuit with a high concentration of load are exempt generators and need no generation permit. Output may be used by the owner or sold through CFE as the basic services supplier, under contract models and payment methodologies issued by the CNE that may not include unauthorized subsidies. Exempt generators may also sell through a qualified services supplier if they do not share a meter with a basic supply user. Interconnection specifications must let typical small requests proceed without specific studies.
Cost to do it: No generation permit fee. Costs are the equipment, a bidirectional meter and the CFE interconnection paperwork.
Example: A hotel in Mérida installs 450 kW of rooftop solar and signs a CNE model contract with CFE to be paid for energy it exports; it needs no CNE permit. / A 450 kW rooftop system is sized by capacity, so it stays permit free regardless of cost.Ley del Sector Eléctrico (LSE), new law DOF 18 March 2025, in force 19 March 2025, LSE arts. 19, 24 to 29, 2025-03-18 official text · verified 2026-10-26

2. Self supply from 0.7 MW. Self supply means a plant of 0.7 MW or more whose output covers the on site needs of the permit holder, preferably with renewables. Isolated self supply is not connected to the national grid and all output stays inside the private network; it is not treated as electricity supply. Interconnected self supply is connected to the grid, and plants of 0.7 to 20 MW may use a simplified permit procedure under CNE guidelines. Load centers whose own plant does not cover their needs can also buy from the grid as basic, qualified or market participant users with a connection contract.
Cost to do it: A CNE generation permit is required; fees under the Ley Federal de Derechos are not quantified here because art. 56 still refers to the former regulator.
Example: An auto parts plant in Coahuila builds an 18 MW solar plant on its own site, connected to the grid: it qualifies for the simplified procedure because it is below 20 MW. / A 25 MW plant at the same site would need the ordinary permit procedure, whatever its cost.Ley del Sector Eléctrico (LSE), new law DOF 18 March 2025, in force 19 March 2025, LSE arts. 30, 31, 33 and 34, 2025-03-18 official text · verified 2026-10-26

3. Surplus and backup for interconnected self supply. Surplus energy from interconnected self supply may be injected into the grid without payment, or sold only if the holder has a valid generation permit and interconnection contract, sells exclusively to CFE (which may choose whether to buy, under contract), and, if the plant is intermittent and injects energy, provides its own backup through storage systems or pays CFE for backup. Legal separation rules do not apply to interconnected self supply. Using private networks for self supply must follow the regulation and SENER or CNE rules.
Cost to do it: If the plant is intermittent and exports, the cost of storage backup or of the backup charge payable to CFE must be built into the business case.
Example: A food processor with 12 MW of solar that exports midday surplus must either install batteries or pay CFE for backup, and can only sell the surplus to CFE. / No statutory amount; backup charges are set under CNE methodologies.Ley del Sector Eléctrico (LSE), new law DOF 18 March 2025, in force 19 March 2025, LSE arts. 32 and 33, 2025-03-18 official text · verified 2026-10-26

4. Energy storage permits. Stand alone storage systems of 0.7 MW or more that are not associated with a power plant or load center need a CNE storage permit. Storage that is part of a plant with a generation permit needs no separate permit. Storage that sells in the wholesale market must be permitted and represented by a storage, generator or supplier market participant. CENACE may sign multi service contracts with storage that adds reliability or helps integrate renewables, and in a grid emergency storage must place all available resources at CENACE's disposal. Storage cannot earn clean energy certificates. Users may also group together to install storage at their own cost.
Cost to do it: CNE storage permit; no fee is quantified here for the same reason as generation permits.
Example: A 10 MW battery at an industrial park substation, not tied to any plant, needs a CNE storage permit; the same battery inside a permitted solar plant does not. / No currency threshold; the 0.7 MW test is technical.Reglamento de la Ley del Sector Eléctrico, DOF 3 October 2025; Ley del Sector Eléctrico (LSE), new law DOF 18 March 2025, in force 19 March 2025, Reglamento arts. 19, 24, 29, 193 to 195; LSE arts. 50 and 85, 2025-10-03 official text · verified 2026-10-26

5. Clean energy certificates (CELs). Suppliers, qualified users who are market participants and end users supplied by self supply, public or private, must meet clean energy and decarbonization obligations. In the first four months of each year SENER sets certificate requirements for the following three years as a share of electricity consumed. The CNE grants CELs to clean plants regardless of ownership or start date, keeps the certificate registry and checks compliance. CELs are tradable, may be bought by non market participants, may be banked between periods with charges, and are valid for 30 months from issue. Each missing certificate is fined 6 to 50 UMA.
Cost to do it: Fine per missing certificate in 2026: MXN 703.86 to MXN 5,865.50 (about USD 38 to USD 314).
Example: A self supplied user short by 10,000 certificates faces a fine of MXN 7,038,600 to MXN 58,655,000. / That is roughly USD 377,126 to USD 3,142,715.Ley del Sector Eléctrico (LSE), new law DOF 18 March 2025, in force 19 March 2025, LSE arts. 142 to 149 and 184, section IV, item c), 2025-03-18 official text · verified 2026-10-26

6. Clean energy targets are set by plan, not by a fixed statutory percentage. The Planning and Energy Transition Law of 18 March 2025 replaced the 2015 Energy Transition Law. It requires a National Energy Transition Strategy with renewable and clean energy targets, and orders SENER to set a minimum share of clean energy in generation consistent with the long term goals of the General Climate Change Law. The law itself does not fix the percentage, so investors should read the current Strategy and the CEL requirements SENER publishes each year.
Cost to do it: No fee; the economic effect comes through the yearly CEL requirement.
Example: A supplier budgeting for 2028 reads the CEL requirement SENER sets in the first four months of 2026, which covers 2027 to 2029. / No currency amount applies.Ley de Planeación y Transición Energética, new law DOF 18 March 2025, Arts. 25 and 26; transitory art. Sexto, 2025-03-18 official text · verified 2026-10-26 · changed: The 2025 law repealed the Ley de Transición Energética of 24 December 2015.

Option	Capacity	Permit	Surplus	Clean energy duty
Distributed generation	Below 0.7 MW	None	Sold through CFE as basic supplier, or a qualified supplier if metering is separate	Not an obligated party as generator
Isolated self supply	0.7 MW or more	CNE permit	None, all consumed on site	End user supplied by self supply is obligated
Interconnected self supply	0.7 MW or more (simplified 0.7 to 20 MW)	CNE permit and interconnection contract	Free injection or sale only to CFE; own backup if intermittent	End user supplied by self supply is obligated
Stand alone storage	0.7 MW or more	CNE storage permit	Market sales through a participant	Not eligible for CELs

Own generation options compared, verified 26 October 2026.

Worked example

A beverage bottler in Jalisco consuming 60 GWh a year builds a 15 MW interconnected solar plant. It files for the simplified CNE permit, signs an interconnection contract, installs a 5 MW battery as backup because it will export at midday, and sells surplus only to CFE. If SENER's CEL requirement leaves it 3,000 certificates short, the fine would be MXN 2,111,580 to MXN 17,596,500 (about USD 113,138 to USD 942,814), so it buys certificates instead.

Step by step

1. Size the plant against the 0.7 MW and 20 MW thresholds.
2. Below 0.7 MW: request interconnection from CFE as distributor and, if exporting, sign the CNE model contract with CFE.
3. From 0.7 MW: apply for the CNE generation permit (simplified if 0.7 to 20 MW and interconnected) and the interconnection contract; check whether a social impact assessment applies.
4. If intermittent and exporting, add storage or agree backup with CFE before injecting.
5. Track the CEL requirement SENER publishes in January to April and buy or generate certificates before each compliance period.

Common traps

Selling self supply surplus to a neighbor or affiliate. Only CFE may buy it (LSE art. 32).
Overlooking CEL obligations for self supplied users; they are obligated parties (LSE art. 144).
Assuming batteries earn CELs. They do not (Reglamento art. 195).
Treating the 20 MW simplified band as an exemption. A permit is still required, only the procedure is simpler (LSE art. 30).

Sources

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