New Mexico solar projects to receive $156 million

Apr. 25—New Mexico is set to receive $156 million for various solar energy projects, largely intended to help low-income residents, as part of the federal Inflation Reduction Act.

The spending comes as part of a federal grant package of more than $7 billion for solar projects targeted to benefit "households in low-income and disadvantaged communities" across the country, the federal Environmental Protection Agency said in a news release Monday.

New Mexico's project — administered through the state Energy, Minerals and Natural Resources Department — is billed on the EPA's website as an effort to "expand access to shared solar beyond the confines of the existing state statutorily defined community solar program." The state plans to use the money on a series of grants and low-interest loans for entities that will help low-income and rural households access solar power.

"The program will bring the most isolated and off-grid residents (e.g., unelectrified homes) online and support grid resilience with on-site solar," the state's project description states, adding the program will be "designed to meet low-income and disadvantaged communities, both owners and renters, where they are with direct grants and financing options for solar projects that decrease energy burden through household annual electric bill savings."

The state Public Regulation Commission also announced last week it is set to receive a slice of the state's $156 million from the EPA for the state's community solar program; the amount was not mentioned.

State officials say the money will help 20,910 New Mexico households connect to solar power. They estimate residents will save through the funding more than $299 million in energy costs over a 20-year period, as well as prevent the release of 116,628 tons of carbon dioxide into the atmosphere. Solar system installations are expected to begin early next year.

Rebecca Stair, director of the state Energy Conservation and Management Division, said the first step in bringing the program to life is to form an Environmental Justice Advisory Committee "to help us ensure that the program delivers benefits most effectively for low-income residents.

"We want to these funds to provide the highest possible valuable to our residents both environmentally and economically," she added.

The local chapter of the Sierra Club applauded the announcement, with director Camilla Feibelman calling the funding an opportunity to "superpower the community solar program."

"The federal Solar for All funding will allow the State Energy Office to prioritize energy for unelectrified homes and families especially in our most rural and underserved communities all while reducing our contribution to climate change," Feibelman said in a news release.