CFE rates explained: GDMTO, GDMTH and solar in 2026
How CFE's 2026 rates work, how GDMTO and GDMTH differ, and how solar changes the math for each rate, including when to switch rates before you install.
The rate you are on decides how much a solar system saves you, and switching rates before you install can multiply that saving. CFE, Mexico’s state-owned electric utility, groups its 2026 rates into three families: residential (1, 1A, 1B, 1C, 1D, 1E, 1F and DAC), commercial and service (PDBT, GDBT, GDMTO and GDMTH), and industrial (GDMTH, DIST and DIT). Each has its own structure and reacts differently to solar. This guide covers the most relevant rates, how they are calculated, what changes once you add panels and when it pays to move from one rate to another. If you run a plant or a commercial building, the sections on GDMTO and GDMTH are the ones that matter most.
Residential rates
CFE classifies household service by the average temperature of the region and by historical consumption.
Rates 1A to 1F: a subsidy that depends on climate
Each rate matches a climate zone:
- 1A: average temperature below 25°C (central Mexico)
- 1B: 25°C to 28°C
- 1C: 28°C to 30°C
- 1D: 30°C to 31°C
- 1E: 31°C to 32°C
- 1F: above 32°C (the hottest zones, such as Sonora)
Each rate has three consumption blocks with stepped prices: basic, intermediate and excess. The government subsidy lowers the real cost for consumption within the subsidy limits.
What matters for solar: while consumption stays within the subsidized blocks, the cost is relatively low and solar has a moderate return. When consumption nears the subsidy limit, a single hot month can push a household into DAC and the cost jumps.
DAC: the high-consumption residential rate
Many Sonorans know this one well. DAC (Doméstica de Alto Consumo) applies when average consumption over the last 12 months exceeds the limit set for your climate zone. You lose the government subsidy and pay the real cost of energy.
What DAC means in practice:
- A cost per kWh that is 3 to 5 times the subsidized cost
- A fixed monthly charge that does not depend on consumption
- Getting the subsidy back requires keeping consumption under the limit for 12 months
For a house in Hermosillo on DAC, the bill, issued every two months, can easily climb from MXN 5,000 to MXN 15,000 in summer. Solar is the most effective tool for returning to the subsidized rate.
Commercial and service rates
PDBT: small demand, low voltage
Businesses with electrical demand below 25 kW. The rate has a fixed charge plus an energy charge, with no time-of-day distinction. It applies to small stores, small restaurants and modest offices.
GDBT: large demand, low voltage
Businesses with demand above 25 kW and below 100 kW. The structure is similar to PDBT, with different charges and a demand charge added.
GDMTO: large demand, medium voltage, ordinary
GDMTO is the ordinary (non-time-of-use) medium-voltage rate. It applies to businesses with demand above 100 kW connected at medium voltage. The structure is a fixed charge, a demand charge and an energy charge with no time blocks. Typical customers are mid-size hotels, shopping centers, large schools, corporate offices and mid-size to large commercial operations.
GDMTH: large demand, medium voltage, time-of-use
GDMTH is CFE’s time-of-use rate for medium-voltage customers with high demand. It covers the same demand range as GDMTO (above 100 kW), but the energy charge splits into three time blocks:
- Base: night and early morning (the cheapest)
- Intermediate: mornings and afternoons (mid price)
- Peak: late afternoon and early evening (the most expensive, up to 3 to 4 times the base price)
GDMTH can beat GDMTO if the business can shift consumption to cheaper hours, or if it is going to install solar panels, because solar generation overlaps with the expensive hours.
Industrial rates
DIST: industrial demand at subtransmission
Industry connected at high voltage with significant demand. The structure is similar to GDMTH, with its own industrial prices.
DIT: industrial demand at transmission
For very large industrial customers connected directly to the national transmission lines. They are less common: these are the country’s largest consumers.
GDMTO vs GDMTH side by side
The key difference: GDMTO charges one price per kWh regardless of the time of day. GDMTH charges three different prices by time block. Both have the same capacity and demand structure.
GDMTO is built for businesses with a flat load profile: offices, stores, schools, hotels. It has three main charges. First, a fixed charge for contracted capacity (kW of demand). Second, a demand charge on the peak kW you actually used. Third, an energy charge on the kWh you consumed.
GDMTH is built for businesses that can optimize consumption by time of day. It has the same capacity and demand structure, but the energy charge changes with the three blocks above.
GDMTO fits if:
- Your operation runs at steady consumption 24/7 (cold storage, refrigerated warehouses, hospitals)
- You have no flexibility to move operations to other hours
- Your consumption is concentrated in the base block (night operations)
GDMTH fits if:
- Your operation is concentrated in daytime hours (offices, restaurants, stores)
- You can shift non-critical processes to the base block (equipment charging, pre-cooling)
- You are going to install solar panels, since generation will overlap with the expensive hours
How each rate changes with solar panels
As the book Guía de Diseño e Instalación de Paneles Solares Fotovoltaicos (published in Spanish) explains, systems interconnected with CFE operate under net metering, regulated by resolution RES/142/2017 of the CRE, the energy regulator. The energy you generate and do not consume is credited against the energy you consume at other times. For how the interconnection itself works, see CFE interconnection.
Residential rates: solar reduces the consumption CFE records. If you are on DAC, solar can return you to the subsidized rate by pulling your 12-month average under the limit.
Commercial and service rates without time blocks (PDBT, GDBT, GDMTO): solar reduces the energy charge. The fixed charge and the demand charge stay, because panels do not necessarily lower your peak demand.
The time-of-use rate (GDMTH): solar mainly reduces the intermediate charge and part of the peak charge. In GDMTH the credit follows the hourly price. Because the system generates in daytime hours, the financial saving is proportionally larger than the energy saving: a kWh saved at peak is worth more than a kWh saved at base. A kWh generated at peak can save you 3 to 4 times what a kWh consumed at base saves. For a business already on GDMTO, moving to GDMTH before installing panels can multiply the system’s financial saving.
Where the peak block sits. In GDMTH, peak is generally 6 p.m. to 10 p.m. on weekdays. In the hot season (May to October) it extends to include the hours of highest air-conditioning demand. Panels generate at their maximum between 10 a.m. and 4 p.m., so the 6 p.m. to 10 p.m. block already has little generation. On large systems in GDMTH, batteries that store energy and release it at peak can make sense (see energy storage).
When to switch rates
From GDMTO to GDMTH: if your operation is concentrated in daytime hours or you can move processes to the base block. It is even more advisable if you are going to install solar panels.
From GDMTH to GDMTO: if your operation is mainly at night and you have no scheduling flexibility.
From PDBT to GDBT: automatic when your demand exceeds 25 kW. CFE applies it.
From a residential rate such as 1F to DAC: automatic when you exceed the consumption limit over 12 months. CFE applies it.
From DAC back to a subsidized rate: requires keeping consumption under the limit for 12 consecutive months. Solar speeds this up significantly.
A switch between equivalent options (such as GDMTO to GDMTH) is requested by the customer directly with CFE. CFE reviews the historical profile and may ask for 6 to 12 months of operation under the current rate before it authorizes the change. It may also require a minimum stay of one year in the new rate before you can go back. Some cases need a meter change, since GDMTH requires a meter that supports hourly measurement.
Before you request a switch without installing panels, run the numbers. With your current profile, what would you pay under GDMTH? If it is more expensive, do not switch until the panels are in. If it is cheaper, switch now. If you plan to install panels within months, the math is different, because generation will change your real profile.
Rate strategy when you add solar
Order matters. Some cases:
Case A: a business on GDMTO. If you are going to install panels and your operation runs in daytime, consider moving to GDMTH before the installation or at the same time. Solar generation in the expensive hours maximizes the financial saving.
Case B: a house on DAC. Install solar first. Within 6 to 12 months your average drops and you return to the subsidized rate automatically. No extra filing is needed.
Case C: an industrial plant on GDMTH. If your operation has a mostly nighttime profile, evaluate whether GDMTO is better before installing solar. With panels, the economics can change.
PSE is not CFE and cannot change your rate for you. What PSE does is the analysis: we calculate how you would end up under different rates, with and without panels, so you can make the right decision. That analysis is part of every proposal, including commercial solar proposals, and it helps you make two decisions in parallel: the rate change and the system size. Both affect the project’s final return.
The trend toward higher rates
CFE adjusts its rates periodically. The trend over the last decade has been upward, accelerating in high-demand regions such as northern and northwestern Mexico. The projections for 2026 to 2030 suggest the trend continues.
For companies and households with significant consumption, that means growing exposure to the cost of electricity. Solar is the most effective hedge, because it fixes the cost of the energy you generate yourself at zero marginal cost once the investment has paid back.
How PSE analyzes your case
PSE delivers a rate analysis as part of the preliminary study of every project:
- Identification of your current rate
- Analysis of your consumption profile
- Simulation under viable alternative rates
- Calculation of the solar return under each rate scenario
- A recommendation for the best rate, with and without solar
This analysis is done before quoting, at no cost. You need to send your last 6 to 12 CFE bills so there is enough data. Request a proposal to start.
Frequently asked questions
Can I freely choose between rates?
Some are automatic, based on consumption or demand: CFE assigns them. Others are elective within certain criteria, such as GDMTO vs GDMTH if you qualify for both. Residential rates follow the climate zone and historical consumption.
How much does CFE raise rates each year?
Rate inflation has been roughly 5% to 12% a year in recent years, with variation by category. CFE adjusts monthly under official formulas and external factors such as fuel costs and exchange rates.
Does a rate change require a meter change?
It depends. Going from GDMTO to GDMTH does require a meter compatible with hourly measurement. Going from PDBT to GDBT can be automatic. CFE evaluates each case.
If I am on DAC, does solar return me to the subsidized rate automatically?
Yes, in roughly 12 months, once the average consumption CFE records falls under the limit. No extra filing is needed: it happens automatically when the condition is met.
How much more expensive is the peak block than the base block in GDMTH?
The peak block costs between 2 and 4 times more than the base block, depending on the month. CFE publishes the exact prices monthly, and they vary by rate region.
Do solar panels generate during the peak block?
Partially. They generate at their maximum between 10 a.m. and 4 p.m. The 6 p.m. to 10 p.m. peak block already has little generation, which is why batteries that store energy and release it at peak can make sense on large GDMTH systems.
Can I move from GDMTO to GDMTH and back?
CFE allows rate changes, but it generally requires a minimum of one year in the new rate before you return. Analyze carefully before you request the change.
Can I combine several rates at different points of my business?
If your business has several service points with separate meters, each one can be on its own rate. Consolidating or separating service points is a specific technical and tax analysis.