New Mexico regulators expand community solar as low income savings reach 10% to 15%

The Public Regulation Commission has opened a second competitive solicitation, called Phase 2, and raised the statewide community solar target from 200 megawatts to 500 megawatts by 2030, while about 16 projects already online show subscribers saving 10% to 15% on their bills.

500 megawatts1statewide community solar target New Mexico regulators set for 2030, up from an original 200 megawatt cap
10% to 15%4typical cut in a subscriber electricity bill from community solar today, according to the Coalition for Community Solar Access
162community solar projects fully online in New Mexico as of July 2026, with roughly 48 more under development

New Mexico community solar savings for low income households grow as the program expands

Community solar lets a New Mexico household subscribe to a share of a solar project built somewhere else and get a credit on its electricity bill, with no panels to install and no roof needed. In July 2026 the Public Regulation Commission approved a second competitive solicitation for the program, called Phase 2, and confirmed a statewide community solar target of 500 megawatts by 2030, more than double the 200 megawatt cap the program started with in 2021. New Mexico already had about 16 community solar projects online and 48 more under development by July 2026, so this expansion adds capacity, not a first project for the state.

The Coalition for Community Solar Access, a developer trade group, says community solar today often cuts a New Mexico subscriber electricity bill by 10% to 15%.

Community solar delivers direct savings for New Mexicans, often reducing their electricity bills by 10-15 percent.

Nick Bowman, senior manager of markets and research at the Coalition for Community Solar Access, quoted in source 4, the Coalition July 2026 statement. Source 4.
New Mexico raises its community solar capacity target
0100200300400500200Initialcap 2021300Cap added2024500Combinedtarget 2030megawatts

The Commission approved the additional 300 megawatts on October 3, 2024, effective November 1, 2024, on top of the original 200 megawatt cap, according to source 1.

Source 1.

Show the numbers
Initial cap 2021200
Cap added 2024300
Combined target 2030500

How New Mexico built low income savings into community solar

New Mexico created its community solar program through the Community Solar Act, Senate Bill 84, enrolled April 5, 2021. The Public Regulation Commission opened a docket, the case file for a proceeding, and finished the Community Solar Rule on July 12, 2022, setting an initial statewide cap of 200 megawatts split among the 3 investor owned utilities in the state, with each project capped at 5 megawatts.

How New Mexico split its original 200 megawatt community solar cap
Public Service Company of New Mexico125Southwestern Public Service Company45El Paso Electric30050100150megawatts

The 3 shares add to the original 200 megawatt statewide cap set when the program began in 2021, before the Commission later raised the combined target to 500 megawatts.

Source 1.

Show the numbers
Public Service Company of New Mexico125
Southwestern Public Service Company45
El Paso Electric30

Developers submitted 408 project bids totaling more than 1.7 gigawatts, so the 200 megawatt cap let the Commission select only 47 of them. Every one of the 47 selected projects pledged to reserve 50% or more of its output for low income subscribers, above the 30% statutory floor. Low income under the law means a household at or below 80% of the area median income, or enrolled in another state low income program, and a utility must keep crediting a subscriber bill for at least 25 years after a project connects.

The Commission own November 2024 report shows those first 47 developers had pledged low income subscribers 20% to 30% off their bills for at least 5 years when their bids were selected. Now that many of those projects are running, the Coalition for Community Solar Access says real world savings measure lower today, at 10% to 15%.

The financial savings of community solar is especially important for our most vulnerable households.

Erica Renaud, sustainability lead for the City of Santa Fe, quoted in source 4. Source 4.

What New Mexico regulators changed in July 2026

The Commission decision in early July 2026 falls under docket 24 00258 UT. It raises the maximum share of a utility capacity allocation that a single subscriber organization, the company managing a project subscribers, may hold from 20% to 30%, and lets the program administrator select projects totaling up to 150% of available capacity. A rehearing period, when a party can ask the Commission to reconsider the decision, runs through August 3, 2026, and utilities must submit consolidated billing plans, combining a subscriber solar credit and utility bill into 1 statement, to the Commission by January 1, 2027.

I'm hearing from our member companies there's been a huge interest by New Mexicans for community solar.

Nick Bowman, senior manager of markets and research at the Coalition for Community Solar Access, quoted in source 2, Albuquerque Journal, published July 16, 2026. Source 2.

Bowman says if every phase 1 and phase 2 project gets built, New Mexico community solar could reach 500 megawatts by 2030, about 4% of the total power New Mexico produces.

Sources

  1. PRC Report to the Legislature on the Status of the Community Solar Program. New Mexico Public Regulation Commission. Published 2024-11-01. Accessed 2026-09-15.
  2. State regulators clear path for next wave of community solar projects. Albuquerque Journal. Published 2026-07-16. Accessed 2026-09-15.
  3. New Mexico PRC Advances Comprehensive Changes to Community Solar Program. Beatty and Wozniak, P.C.. Published 2026-07-15. Accessed 2026-09-15.
  4. Statement from Nick Bowman, Senior Manager, Markets and Research, CCSA and Erica Renaud, Ph.D., Sustainability Lead, City of Santa Fe on New Mexico PRC Decision. Coalition for Community Solar Access. Published 2026-07-06. Accessed 2026-09-15.
  5. New Mexico's Community Solar Program. Institute for Local Self Reliance, Energy Democracy Initiative. Accessed 2026-09-15.

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