New Mexico’s community solar program expands as projects deliver bill credits

NEW MEXICO (KRQE) – Lawmakers created a special program in 2021 to help more New Mexicans voluntarily support solar projects—without needing panels on their homes or apartments. Now, nearly five years later, dozens of those community solar farms are finally coming online.

As of September, the first few solar farms connected to the New Mexico Community Solar Act have been going live, with almost 50 new community solar farms going up next year for El Paso Electric, Xcel Energy, and PNM customers.

Alaric Babej, Director of Customer Energy Solutions for PNM, said, “We are currently putting on the first bill credits on subscriber bills right now, so there are subscribers to community solar that are already receiving credits from PNM. So it’s a really exciting time to be in the industry.”

He said PNM is the first utility in the state to get community solar farms interconnected under the new program. “Community Solar is unique because you don’t have to actually put panels on your house. You’re able to get the benefits of participating in the solar energy industry without directly installing it,” Babej said. “And so the goal of the program is to open up those benefits to customers that couldn’t install traditional solar. So, for example, folks that live in apartment buildings, or maybe they’re renters.”

To take part, customers must contact a subscription management company. The state has vetted and approved five such companies. Ratepayers enroll and are set up with a subscription fee tailored to their usage patterns, based on previous yearly electricity use.

Credits appear on the utility bill before the subscriber pays their subscription fee. For income-qualified users, the credit can be anywhere from 20–30 percent of the subscription fee.

For example, if an income-qualified family typically pays $100 on their monthly electricity bill and then pays a $50 subscription fee, the credit could be around $70 (depending on the subscription management company). That would result in a net, monthly savings of $20.

The New Mexico Public Regulation Commission said that this discount will always result in net savings, and income-qualified subscribers may save up to three times more than non-income-qualified participants.

Income-qualified subscribers must make at or below 80% of the area’s median income.

Christian Casillas, Executive Director of the Coalition of Sustainable Communities New Mexico, said the state has tasked the coalition with outreach and education. The group is hosting in-person and online seminars about the program and how to enroll.

“Just as an example, if you’re living in Bernalillo County and you’re a household of two people, your income would need to be below $58,000 a year,” Casillas explained. “And if you qualify for that, then you should expect to see something like 15% to 28% savings in your electricity costs over the course of the year. And if you are not an income-qualified household, you should expect to see something like six to 7% savings over the course of the year.”

Casillas said the state hopes this first phase of solar farms will reach as many as 35,000 households—or roughly 10 percent of the state’s low-income population who would qualify. 

The program is open to more than income-qualified residents. Homeowners, businesses, schools, churches, and nonprofits can also participate.

Participants don’t have to live near the solar farm they are subscribed to. 

Troy McGee, founder of WattsUp New Mexico, a company helping connect customers to the state-endorsed program, said there are multiple reasons beyond savings to get involved. He noted that participating helps the state transition to renewable energy, and that developers have pledged 50% of farm capacity (and are required by statute to reserve at least 30%) for income-qualified ratepayers. “It’s the easiest way to save on electricity, you’re not switching providers. It’s an easy way to help other income-qualified homes. And it makes a ton of local jobs,” said McGee.

He added that there’s no risk of paying more in fees, subscriptions can be adjusted as household energy needs change, and there’s no cancellation fee.

McGee said building trust is essential in the communities he serves.

“There’s been a lot of scammy sales in the solar industry, so there’s a lack of trust, but I think when people know that we’re local and they talk with us, they quickly begin to trust us,” he said.

So far, the Public Regulation Commission said three community solar farms are live, 10 are expected to be ready by the end of the year, and approximately 47 more are anticipated by the end of 2026.

According to the Coalition, each five-megawatt farm creates a reduction in greenhouse gas emissions over the course of the year that would be equivalent to removing about 1000 gasoline-powered vehicles. 

Cities getting one or more community solar farms interconnected with PNM:

• Alamogordo – 2
• Albuquerque – 1 
• Belen – 2
• Clayton – 1
• Deming – 6
• Las Vegas – 1
• Lordsburg – 3
• Los Lunas – 4 
• Rio Communities – 1 
• Rio Rancho – 1
• Santa Fe – 1 
• Silver City – 2 
• Tularosa – 5 

Cities getting one or more community solar farms interconnected with El Paso Electric:

• Chaparral – 1
• Las Cruces – 3 
• Salem – 1
• Vado – 1

Cities getting one or more community solar farms interconnected with Southwestern Public Service Company:

• Carlsbad – 1
• Clovis – 4 
• Hobbs – 1 
• Portales – 2 
• Roswell – 3