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New Mexico Supreme Court upholds community solar program rules

Community solar advocates hail this ruling as a victory for the future of community solar in the state, allowing New Mexicans the opportunity to subscribe to solar projects and save money

Santa Fe, New Mexico — This week, the New Mexico Supreme Court upheld the current rules for New Mexico’s community solar program and ruled in favor of the Public Regulation Commission (PRC) and a coalition of intervenor-appellees that included the Coalition for Community Solar Access (CCSA), the Coalition of Sustainable Communities New Mexico (CSCNM), City of Las Cruces, New Energy Economy, and the Renewable Energy Industries Association of New Mexico. The Supreme Court’s decision means the state’s community solar program will continue to be rolled out under the PRC’s existing rules, giving all New Mexico residents an opportunity to take advantage of the benefits of clean, local renewable energy. 

The community solar program rules were approved in July 2022 and quickly challenged by Xcel Energy’s regional utility operating company, Southwestern Public Service Company (SPS). In its ruling on Monday, the Supreme Court found that SPS’s appeal had no merit, authorizing community solar development to proceed without further delay. 

In 2021, the Community Solar Act authorized community solar in the state by allowing homeowners, renters, and businesses to subscribe to electricity from community solar facilities, interconnected to New Mexico’s three major utility companies, including SPS. New Mexicans can save between 10% – 30% on their utility bills for being part of the program, with low-income subscribers slated to save the most.

“As a proud sponsor of The Community Solar Act, I applaud the New Mexico Supreme Court for doing right by the people and honoring the Act’s legislative intent. Community solar will continue to play a crucial role in advancing state clean energy goals and this is a step towards cementing our role as a national leader,” said State Senator Liz Stefanics

“New Mexico communities deserve to be powered by sustainable energy generation made right here in the state, with equitable benefits,” said Beth Beloff, President and Founder of CSCNM. “This ruling provides a much-needed avenue for low-income communities and households to experience the full benefits of clean energy and resulting bill savings.” 

“This decision from the New Mexico Supreme Court is monumental as we work to democratize solar energy in New Mexico,” said Kevin Cray, Mountain West Senior Director for CCSA. “This program will create a more equitable and resilient grid, enable new communities to embrace clean energy, and save money for hard-working families. We look forward to working closely with our partners in the state to continue rolling out the first phase of this program and further expand it in the future so more people can access its benefits.”

This ruling comes on the heels of several new national announcements from federal organizations that have reaffirmed community solar’s role in an all-of-the-above energy approach. A National Renewable Energy Laboratory report found the technical capacity of community solar could reach nearly one terawatt of capacity, enough to serve 53 million households and 300,000 businesses. Wood Mackenzie’s most recent market outlook shows US community solar installed capacity is expected to break 14 GW by 2028. 

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The Coalition for Community Solar Access (CCSA) is a national trade association representing over 125 community solar developers, businesses, and nonprofits. Together, we are building the electric grid of the future where every customer has the freedom to support the generation of clean, local solar energy to power their lives. Through legislative and regulatory advocacy, and the support of a diverse coalition — including advocates for competition, clean energy, ratepayers, landowners, farmers, and environmental justice — we enable policies that unlock the potential of distributed energy resources, starting with community solar. For more information, visit https://www.communitysolaraccess.org and follow the group on Twitter (X), LinkedIn, and YouTube.