The southwestern part of the US has abundant supply of renewable energy resources but little is known about the consumers' preferences for renewable energy in this region. This paper investigates households' willingness to pay for a renewable energy program in a southwestern state, New Mexico (NM). Using the contingent valuation method, we provide different scenarios that include provision of 10% and 20% of renewable energy supply, to elicit households' willingness to pay (WTP) for the renewable energy. We estimate the WTP for specific shares of renewable energy in the total energy mix as it is a key factor in affecting the price of the energy portfolio in the market. The survey design also allows us to check the scope sensitivity of renewable energy which can help guide the future renewable energy policy. We hope results from this study will offer useful insights to energy regulators and utility companies and help them increase the share of renewable energy supply. ► We estimate willingness to pay (WTP) for renewable energy in the southwestern US. ► Households' WTP in New Mexico is estimated using the contingent valuation method. ► WTP is estimated for 10% - 20% shares of renewable energy in the total energy mix. ► WTP estimates indicate scope sensitivity for a larger share of renewable energy.