# Some Questions about Living in Monterrey



## pazenel (Feb 2, 2012)

May I ask some questions about living in Monterrey?

I heard that living in Monterrey is very expensive because the high cost of everything and the electric bills are outrageous.

Can somebody tell me how much a couple will pay a month for electricity, please? 

Thank you

Paz


----------



## TundraGreen (Jul 15, 2010)

pazenel said:


> May I ask some questions about living in Monterrey?
> 
> I heard that living in Monterrey is very expensive because the high cost of everything and the electric bills are outrageous.
> 
> ...


Electricity is no more expensive in Monterrey than anywhere else. CFE, the electric company, is national. However, the thresholds are different depending on climate. Hot locations are allowed higher limits before getting into the surcharged rates.

Electricity rates are very progressive, that is, the rate depends on usage. At low levels of usage, less than a "DAC" limit, the rates are comparable to many places in the US, around $0.80 pesos/kwh ($0.06 usd/kwh). Above that limit, the rates get very expensive, more like $3 or $4 pesos/kwh plus a monthly fixed charge. The DAC limit varies depending on the climate of the city. Furthermore, if your usage once goes over the DAC limit, the rate stays high even if your usage then drops under the limit. It takes a year under the limit to get out from under the high rates. (DAC = Domesticos De Alto Consumo).

The bottom line is that if you use only a modest amount of electricity, lights, refrigerator, TV, computer, your bill will probably be a few hundred pesos every other month. But if you use a lot of air conditioning, heating, or heat a swimming pool, your bill can run to thousands of pesos every other month.


----------



## AlanMexicali (Jun 1, 2011)

TundraGreen said:


> Electricity is no more expensive in Monterrey than anywhere else. CFE, the electric company, is national. However, the thresholds are different depending on climate. Hot locations are allowed higher limits before getting into the surcharged rates.
> 
> Electricity rates are very progressive, that is, the rate depends on usage. At low levels of usage, less than a "DAC" limit, the rates are comparable to many places in the US, around $0.80 pesos/kwh ($0.06 usd/kwh). Above that limit, the rates get very expensive, more like $3 or $4 pesos/kwh plus a monthly fixed charge. The DAC limit varies depending on the climate of the city. Furthermore, if your usage once goes over the DAC limit, the rate stays high even if your usage then drops under the limit. It takes a year under the limit to get out from under the high rates. (DAC = Domesticos De Alto Consumo).
> 
> The bottom line is that if you use only a modest amount of electricity, lights, refrigerator, TV, computer, your bill will probably be a few hundred pesos every other month. But if you use a lot of air conditioning, heating, or heat a swimming pool, your bill can run to thousands of pesos every other month.



The CFE allotments are in April every year. If you exceed your yearly allotment you stay in the DAC until your allotment in April no matter your consumption. Many do stay in the DAC for months until April and consume whatever. 

I did it once in Mexicali with electric heaters in Dec. and Jan, not AC in the summer as I watched my consumption carefully and was frugal. I was in the DAC for 4 months even though I stopped using the heaters. 

In Monterrey they have a higher allotment per year than most of Mexico which is 3000 KWH. 

Mexicali gets 18,000 KWH allotment every April. 

With 3000 KWH per year allotment that is 500 KWH every 2 months on average to stay out of the DAC.


----------



## pazenel (Feb 2, 2012)

Thank you so much for your detailed info, Alan and Tundra. My family lives there, and they want me to buy a home there. They live in Carretera Nacional. Have anybody bought a home in Monterrey??

I am so glad and happy that I have all of you, because I have a lot of questions...

Blessings to all.
Paz


----------



## Mr. P Mosh (Mar 14, 2012)

Carretera nacional? A nice quinta I guess, but I'd preffer something closer to everything. :b


----------



## pazenel (Feb 2, 2012)

TundraGreen said:


> Electricity is no more expensive in Monterrey than anywhere else. CFE, the electric company, is national. However, the thresholds are different depending on climate. Hot locations are allowed higher limits before getting into the surcharged rates.
> 
> Electricity rates are very progressive, that is, the rate depends on usage. At low levels of usage, less than a "DAC" limit, the rates are comparable to many places in the US, around $0.80 pesos/kwh ($0.06 usd/kwh). Above that limit, the rates get very expensive, more like $3 or $4 pesos/kwh plus a monthly fixed charge. The DAC limit varies depending on the climate of the city. Furthermore, if your usage once goes over the DAC limit, the rate stays high even if your usage then drops under the limit. It takes a year under the limit to get out from under the high rates. (DAC = Domesticos De Alto Consumo).
> 
> The bottom line is that if you use only a modest amount of electricity, lights, refrigerator, TV, computer, your bill will probably be a few hundred pesos every other month. But if you use a lot of air conditioning, heating, or heat a swimming pool, your bill can run to thousands of pesos every other month.


WOW! Thank you for the detailed info, I appreciate it.
i have heard horror stories about the electric bills in Mexico where the A/C is vital.
$12 000 pesos!!


Do you live in Monterrey?

I wonder if there is a "cheaper" A/C unit. because mostly everybody has the Mini Split. Does any body can tell me of any??

Paz


----------



## pazenel (Feb 2, 2012)

AlanMexicali said:


> The CFE allotments are in April every year. If you exceed your yearly allotment you stay in the DAC until your allotment in April no matter your consumption. Many do stay in the DAC for months until April and consume whatever.
> 
> I did it once in Mexicali with electric heaters in Dec. and Jan, not AC in the summer as I watched my consumption carefully and was frugal. I was in the DAC for 4 months even though I stopped using the heaters.
> 
> ...


GREAT INFO THANKS!!

You guys are incredible, so much knowledge!

I am a girl, so you know who is talking. 

I do not understand well about the allotment in Monterrey of 3000 and the one in Mexicali of 18000, why is there such a difference?

THANK YOU! 

Paz


----------



## pazenel (Feb 2, 2012)

Mr. P Mosh said:


> Carretera nacional? A nice quinta I guess, but I'd preffer something closer to everything. :b


That is true, but sometimes one can not choose, hehehe.

Any sugestions?

Paz


----------



## AlanMexicali (Jun 1, 2011)

pazenel said:


> GREAT INFO THANKS!!
> 
> You guys are incredible, so much knowledge!
> 
> ...


"4.- Límite de alto consumo 

El límite de alto consumo se define para cada localidad en función de la tarifa en la que se encuentre clasificada:



Tarifa 1: 250 (doscientos cincuenta) kWh/mes. 
Tarifa 1A: 300 (trescientos) kWh/mes. 
Tarifa 1B: 400 (cuatrocientos) kWh/mes. 
Tarifa 1C: 850 (ochocientos cincuenta) kWh/mes. 
Tarifa 1D: 1,000 (un mil) kWh/mes. 
Tarifa 1E: 2,000 (dos mil) kWh/mes. 
Tarifa 1F: 2,500 (dos mil quinientos) kWh/mes." 


Tarifas - CFE

These are the 7 climatic zone tariffs so Monterrey is not in tarifa 1. It is hotter than most of Mexico and the majority of Mexico is tarifa 1. Possibly a tarifa 1C or 1D.


----------



## sandcruiser (Sep 8, 2014)

Mini-split air conditioners tend to be among the most efficient.
All A/C units have what is called a SEER rating that describes efficiency. Currently, 13 is considered "efficient" for a mini-split (and would earn an Energy-Star rating in the USA). There are units that are available up to 20 SEER. They cost more, but use about half as much power as a 13 SEER unit. 15-17 SEER are probably a better cost-effective option. Using ceiling fans in addition to A/C units (set the A/C a little warmer) is a great way to reduce power consumption yet stay comfortable



pazenel said:


> I wonder if there is a "cheaper" A/C unit. because mostly everybody has the Mini Split. Does any body can tell me of any??
> 
> Paz


----------



## badanthont (Sep 21, 2014)

I believe I read somewhere that they're going to make it so that CFE is no longer a monopoly. More competiton might mean lower rates. Any one else hear of this? Solar might be a way to lower your bills but it is fairly expensive.


----------



## conorkilleen (Apr 28, 2010)

badanthont said:


> I believe I read somewhere that they're going to make it so that CFE is no longer a monopoly. More competiton might mean lower rates. Any one else hear of this? Solar might be a way to lower your bills but it is fairly expensive.


good luck going solar in Mexico. They make good units almost too expensive to make it worth the set-up. "They" means them.. by them I mean the Monopoly Guy(s).

The only thing I saw solar at a decent price was a water heater...it was a 10,000 MXN set up. The large panels, converters and transformers are about 2x what you would get in the US in terms of price. I've done my research, and Solar is just not there yet in Mexico


----------



## sandcruiser (Sep 8, 2014)

conorkilleen said:


> good luck going solar in Mexico.
> 
> [snip]
> 
> The large panels, converters and transformers are about 2x what you would get in the US in terms of price. I've done my research, and Solar is just not there yet in Mexico


Solar is a rapidly changing industry and residential solar in Mexico is still in its infancy. It might be worth your while to do research anew.

At least two of the larger panel manufacturers have factories in Mexico that supply components to both USA and Mexico*. One of the largest Chinese manufacturers sells the exact same panels priced lower to Mexico than to the USA as they attempt to gain market share. I can't speak to costs of inverters/racking/wiring, which are minor but notable costs in a given system, but nothing I've seen supports the assumption that they are significantly different in pricing. There are giant wire manufacturers in Mexico, racking is fairly easy to transport, and inverters are only 10% of the cost of a system, so even if they were more expensive, it wouldn't radically shift the numbers.
*more companies are moving production there as we speak.

What is far different is skilled labor for the installation. 
Mexico wins by a large margin. Labor accounts for about 30% of the cost of a system in the USA, so that reduction in cost is significant.

The vast majority of Mexico also has a higher insolation factor than the vast majority of the USA-- ie: the same kW of panels in the SF Bay Area of California will produce about 1,500 kWh of electricity/annum whereas in Baja Sur it would produce nearly 1,800 kWh/annum. That's a 20% increase in production for the exact same equipment.

It is also relevant that Mexico has a much simpler permitting/commissioning scenario- again making installations lower-cost and faster (though it also requires more due-diligence by the homeowner to ensure that the installer is legit)

Momentum within the industry, and economy of scale do play a role. Prices in Mexico will continue to drop much as they do in other countries.

Currently, there are companies offering systems at *better* prices (for the identical components) than in the USA. Add to that the fact that DAC electrical pricing in much of Mexico is higher than typical electrical rates in the USA, and you have even more justification to use solar power to reduce CFE purchases.

All of this to say that my own experience is very different than my understanding of your post and I encourage you to investigate further because options *do* exist. 

Full disclosure: I do work in the industry. 
I have a vested financial interest in solar in both Mexico and in the USA.


----------



## TundraGreen (Jul 15, 2010)

I installed a solar hot water system, and have looked into solar electric as well.

The solar hot water is great in terms of convenience. Before that I had an old hot water heater without a thermostat. I had to turn it on before use and to pilot or off after use. Now I just have hot water all the time. It has not saved me a lot of money however. I used little propane for hot water before and, consequently, there was little room for savings. Bottles lasted 4 months before, now they last 5 months.

For me, the problem with solar electric is that CFE still charges a minimum even if you use no electricity and they do not run the meter backwards. You get no credit for generating more electricity than you use. At least that is what I have been told. I use little electricity, so the economics of the installation are even worse than they were with solar water.

I have been tempted to install solar electric anyway, just because it would be environmentally beneficial, but the cost has slowed me down for the moment.


----------



## sandcruiser (Sep 8, 2014)

TundraGreen said:


> [snip]
> For me, the problem with solar electric is that CFE still charges a minimum even if you use no electricity and they do not run the meter backwards. You get no credit for generating more electricity than you use. At least that is what I have been told. I use little electricity, so the economics of the installation are even worse than they were with solar water.
> [snip]



no doubt, it's hard to achieve savings if your costs are very low.
For people who use enough power to enter in the DAC (alto consumo), it is easy to show savings. for folks who use less power, the government subsidies for CFE push the economics away from solar, but solar continues to be an attractive solution for some people based on non-economic rationale. 

As for "running the meter backward": the industry terminology for this is *"Net Metering"*, which has been legal in Mexico since 2007. The concept was clarified to include more forms of energy production and new rules were published in the Official Gazette (Diario Oficial de la Federación) on April 8th, 2010. [ link to Spanish Diario Oficial: DOF - Diario Oficial de la FederaciÃ³n ]

short version: if you produce more than you use at any given instant, your meter does spin backward. You will not be paid for that energy, but it is credited against future energy use (such as during the night).


----------



## pazenel (Feb 2, 2012)

thank you so much for this great information, God bless you!


----------



## pazenel (Feb 2, 2012)

badanthont said:


> I believe I read somewhere that they're going to make it so that CFE is no longer a monopoly. More competiton might mean lower rates. Any one else hear of this? Solar might be a way to lower your bills but it is fairly expensive.


That would be great, let's hope so...


----------



## michele13 (Aug 21, 2013)

It all depends on where you are living at, too. Electricity bills are sent out every two months and depending on the area, the government subsidizes parts of the bill. One of my friends has a house in Carretera Nacional, and with her and two other people, they pay roughly 22,000 pesos (for the two months.) However, I've lived in Contry Tesoro (the not so rich part of Contry) and we paid max 700 pesos with the AC running all the time. Now we are living in Obispado (a pretty nice area close to San Jeronimo) with no AC unit and our bill is around 700 pesos for three people. 

If you live in the "richer" areas such as Carretera, San Pedro, San Jeronimo and Churubusco, you'll wind up paying more because the government will help less. 

Hope this helps!


----------



## pazenel (Feb 2, 2012)

michele13 said:


> It all depends on where you are living at, too. Electricity bills are sent out every two months and depending on the area, the government subsidizes parts of the bill. One of my friends has a house in Carretera Nacional, and with her and two other people, they pay roughly 22,000 pesos (for the two months.) However, I've lived in Contry Tesoro (the not so rich part of Contry) and we paid max 700 pesos with the AC running all the time. Now we are living in Obispado (a pretty nice area close to San Jeronimo) with no AC unit and our bill is around 700 pesos for three people.
> 
> If you live in the "richer" areas such as Carretera, San Pedro, San Jeronimo and Churubusco, you'll wind up paying more because the government will help less.
> 
> Hope this helps!


WOW!! How expensive!!

You need to make a lot of money. How dissapointing.


----------



## AlanMexicali (Jun 1, 2011)

michele13 said:


> It all depends on where you are living at, too. Electricity bills are sent out every two months and depending on the area, the government subsidizes parts of the bill. One of my friends has a house in Carretera Nacional, and with her and two other people, they pay roughly 22,000 pesos (for the two months.) However, I've lived in Contry Tesoro (the not so rich part of Contry) and we paid max 700 pesos with the AC running all the time. Now we are living in Obispado (a pretty nice area close to San Jeronimo) with no AC unit and our bill is around 700 pesos for three people.
> 
> If you live in the "richer" areas such as Carretera, San Pedro, San Jeronimo and Churubusco, you'll wind up paying more because the government will help less.
> 
> Hope this helps!


CFE doesn´t discriminate between wealthy áreas and poorer áreas in Monterrey or anywhere else. 

If you stay out of the DAC rate your highly subsidized bill will be low. If you are in the DAC rate your unsubsidized bill will be very high. A much higher KWH rate than much of the US.

The trick is to stay in the highly subsidized rate and out of the DAC rate. Some people can´t do that and pay many times more than most people who can.


----------



## sandcruiser (Sep 8, 2014)

To add to that: CFE does adjust the number of kWh that you can use and stay below DAC dependent upon where you live in the country, based on the average temperature. The hotter areas can use more power before they hit DAC. Cooler areas: less. There are also tiers of cost that are below DAC, and those tiers are also rated according to geography. 

There is a reasonably clear explanation available on the CFE website. It all depends on where you are.





AlanMexicali said:


> CFE doesn´t discriminate between wealthy áreas and poorer áreas in Monterrey or anywhere else.
> 
> If you stay out of the DAC rate your highly subsidized bill will be low. If you are in the DAC rate your unsubsidized bill will be very high. A much higher KWH rate than much of the US.
> 
> The trick is to stay in the highly subsidized rate and out of the DAC rate. Some people can´t do that and pay many times more than most people who can.


----------



## pazenel (Feb 2, 2012)

sandcruiser said:


> To add to that: CFE does adjust the number of kWh that you can use and stay below DAC dependent upon where you live in the country, based on the average temperature. The hotter areas can use more power before they hit DAC. Cooler areas: less. There are also tiers of cost that are below DAC, and those tiers are also rated according to geography.
> 
> There is a reasonably clear explanation available on the CFE website. It all depends on where you are.


 Thank you so much for all this important information.

Have a great week!

Blessings to all.


----------

