en.Wedoany.com Reported - The New Mexico Public Regulation Commission (PRC) has officially approved Phase Two of the state's community solar program, allowing for the launch of large-scale new project development. This decision clears the way for the issuance of the state's second-phase Request for Proposals (RFP), ending years of regulatory bottlenecks and utility disputes that had constrained the state's community solar market.
Community solar progress in New Mexico had long stalled as the state's three investor-owned electric utilities fought project guidelines, taking litigation all the way to the state Supreme Court. It was only recently that the state's first community solar array was completed, even though Governor Michelle Lujan Grisham signed the Community Solar Act in 2021. With legal disputes resolved, clean energy advocates and local governments are now seeking to quickly enter the next deployment cycle. The updated Phase Two rules largely continue the project priorities of Phase One, which focused on expanding equitable access to clean energy. In Phase One, developers jointly committed to reserving 50% of total community solar capacity exclusively for low-income subscribers, exceeding the initial 30% baseline requirement set by the 2021 regulations.
Nick Bowman, Senior Manager of Markets and Research at the Coalition for Community Solar Access (CCSA), stated in a joint statement that this decision lays the groundwork for the Phase Two RFP, bringing New Mexico closer to expanding access to affordable, locally produced clean energy for more families, businesses, and communities. According to clean energy advocates, the state's community solar projects typically provide subscribers with immediate utility bill savings of 10% to 15%. This financial buffer is a key driver of local government support for the program. Dr. Erica Renaud, Director of Sustainability for the City of Santa Fe, noted that the financial savings from community solar are especially important for the most vulnerable households, and that the Commission's thoughtful improvements to the program will make community solar more accessible, efficient, and better positioned to deliver long-term economic, environmental, and community benefits across New Mexico.
Due to years of litigation delays, developers are now operating on an accelerated timeline. CCSA emphasized that the PRC and program administrators must quickly issue and award the next round of project RFPs to leverage federal clean energy funding. Bowman added that they encourage the PRC and program administrators to accelerate the issuance and awarding of the next RFP round to maximize the use of these incentives before federal tax credits expire, helping New Mexicans—including low-income households—save on energy bills. Ensuring that expiring federal tax benefits are utilized will directly drive greater participation in the community solar program, particularly among low-income communities. Under the newly approved Phase Two framework, the state is expected to expand local grid resilience and employment, increase clean energy jobs, while continuing to advance New Mexico's statutory goal of generating 80% of its electricity from renewable sources by 2040.
