Community Solar Program

February 10, 2023


S.B. 84, enacted in April 2021, established a community solar program in New Mexico. Community solar facilities can generate up to 5MW of alternating current and must have at least 10 subscribers. A single subscriber can purchase no more than 40% of the electricity from a system, and at least 40% of each system's electricity must be reserved for smaller subscriptions of 25kW or less. Native community solar projects are exempt from these requirements. In addition, 30% of a system's electricity must be reserved for low-income subscribers. The program will open to the public in April 2023.

Through April 2024, there are 200 MW available, split between the three major utilities. After this, an annual cap will be created. Native and rural cooperative solar projects are exempt from this cap.

Program Overview

Implementing Sector: State
Category: Regulatory Policy
State: New Mexico
Incentive Type: Community Solar Rules
Web Site:
Administrator: Public Regulation Commission
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
Applicable Utilities: Investor-owned electric public utilities. Native and rural electric distribution cooperative projects can opt-in.
System Capacity Limit: Up to 5MW
Program Capacity Limit: Up to 200MW split by utility. Public Service Company of New Mexico has 125 MW. Southwestern Public Service Company has 45 MW. El Paso Electric has 30 MW. These caps will last through April 2024. Native and rural cooperative projects are not beholden to the cap.
Participant Credit Rate: Credit rate is based on the utility's total aggregate retail rate on a per-customer-class basis, minus the cost of approved distribution cost components
Low-Moderate Income Provisions: 30% of the electricity produced in a community solar facility must be reserved for low-income subscribers


This program has 1 incentives
Technologies: Solar Photovoltaics
Parameters: The system has a minimum of 5000.00 kW-AC


Name: N.M. Stat. § 62-16B

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.