The New Mexico Public Regulation Commission (NMPRC) has approved an increase of 300 megawatts (MW) in the state's community solar program, effective November 1. This expansion more than doubles the capacity originally set under the Community Solar Act, which aimed to add 200 MW across three utilities: Public Service Company of New Mexico (PNM) with 125 MW, Southwestern Public Service Company (SPS) with 45 MW, and El Paso Electric Company (EPE) with 30 MW.
The state's commission will review these allocations to accommodate the new capacity. The initial program was signed into law by Governor Michelle Lujan Grisham in April 2021.
The NMPRC noted that raising the cap by 300 MW will help New Mexico meet the growing demand for renewable energy while addressing inequities in access to clean energy.
Industry advocates welcomed the decision, highlighting its potential to enhance energy accessibility. Kevin Cray, Senior Director at the Coalition for Community Solar Access (CCSA), expressed enthusiasm for the PRC's approval, emphasizing that the expansion positions New Mexico to provide more residents with access to local renewable energy while also capturing federal incentives under the Inflation Reduction Act (IRA).
The increase in community solar capacity comes amid growing corporate interest in this sector. While the state currently does not lead in installed solar photovoltaic (PV) capacity, the 300 MW addition aligns with broader national trends. As of the end of Q2 2024, the total community solar capacity in the U.S. stands at nearly 3 GW. According to the Solar Energy Industries Association (SEIA), New Mexico ranks 12th in growth projections over the next five years, with an estimated 5.5 GW of additional PV capacity.
The appetite for community solar continues to grow, driven by corporate demand. This trend is expected to propel the segment towards nearly doubling its installed capacity, with more than 7.3 GW of new community solar projects projected by 2029. Annual additions of community solar PV capacity have exceeded 1 GW since 2021 and are anticipated to peak at 1.4 GW in 2026.
