With current solar capacity at 3,503 MW and a total investment of $5.7 billion, the solar market in New Mexico is strong. New Mexico’s Renewable Portfolio Standard requires that utilities provide 50% renewable energy by 2030 and 80% by 2040. In response, the relatively recent community solar program in New Mexico has been driving clean energy growth and helping to bring equity to the state’s energy sector.

Created in 2021 with SB84, the program was adopted by the New Mexico Public Regulation Commission (PRC) in July 2022. It includes customers of the state’s three investor-owned utilities, which serve about 72% of New Mexico’s utility customers. Rural electric cooperatives are not mandated to participate, though they may choose to opt in if they wish. The program has a 5 MW project cap and includes a 30% carve-out for low-income subscribers and service organizations that grants a 28% discount on their electric bills. Commercial customers like small businesses and nonprofits can also participate to earn a 10% discount.

From the beginning, the program was met with enthusiasm by developers and community members. In the first round of submissions, 400 applications for projects totaling over 1.7 GW were submitted. In 2023, the PRC and InClime Inc. selected companies to construct 45 projects across the state, with some set to come online next year. The projects committed to at least 50% capacity to low-income subscribers with no upfront costs, early termination fees or credit checks for these subscribers.

The largest utility in the state, Public Service Company of New Mexico, lists at least 29 distributed generation sites that its customers will be able to utilize in the future. Some of the approved projects are set to deploy on state lands in Doña Ana, Grant, Hidalgo and Roosevelt counties. Aside from bringing the savings of solar to New Mexico residents who would not normally access them, these projects allow the government to use leased state trust land to forward renewables growth and help meet New Mexico’s clean energy goals. The first project on state land broke ground in spring of this year in Los Lunas.

Though the program is in its early stages, expansion continues unabated: in 2024 New Mexico’s community solar increased by 35%, and the PRC expanded the program capacity from 200 MW to 500 MW. Currently, there are 49 community solar projects in development in the state. The initiative has great potential. A 2021 University of New Mexico study predicted that, over a five year period, community solar deployment could generate $517 million in economic benefits and 3,760 jobs. The study also stated that each county in the state would benefit from $15 million in economic output and 117 new jobs over a 20-year period.

Standard Solar in New Mexico

Standard Solar’s presence in New Mexico is growing, with over 65 MW of projects both operational and moving toward completion. Among the newest additions is the 4.98 MW Bent Bow project in Doña Ana County, acquired in 2024 from Energy Management, Inc. As one of New Mexico’s early community solar developments, Bent Bow is poised to deliver roughly 11,310 MWh of renewable energy annually once completed, strengthening the region’s clean-energy supply and adding to Standard Solar’s expanding portfolio. Additionally, our company has acquired an eight-project, 48.4 MW community solar portfolio, one of the first facilities to be realized under the state’s recently expanded community solar initiative. This ambitious portfolio is augmenting access to subscriber-based solar statewide and will generate over 103,000 MWh of clean energy in its first year.