Access to solar power for more New Mexico residents and businesses is right around the corner, and companies will soon have the chance to start bidding for a slice of community solar production.
Solar energy companies can begin bidding on Dec. 1 to construct and operate community solar facilities. InClime Inc., an Annapolis, Md.-based clean energy solutions company, is acting as the independent administrator of the state's Community Solar Program. The company released the request for proposals on Nov. 3.
The opening of the bid process comes as the New Mexico Public Regulation Commission (PRC) and InClime rolled out a new website for the Community Solar Program. It includes more details about the program and information for both solar energy providers and customers. Implementation of the program is set to start after April 1, according to a news release from the PRC.
InClime Inc. will oversee the project solicitation process and recommend bid finalists to the PRC, according to the release. Community solar companies will vie to provide 100 megawatts per year of solar energy to the three investor-owned utility companies in New Mexico — the Public Service Company of New Mexico (PNM), El Paso Electric (EPE) and Xcel Energy.
The Community Solar Act, passed in April 2021, set a cap of 100 megawatts of solar energy per year until Nov. 1, 2024. At that point, the PRC will review the program and recommend a new cap.
The PRC's Vice Chair, Commissioner Joseph M. Maestas, said that the demand for community solar is "incredible." Maestas helped lead the PRC's development of the Community Solar Rule, which became effective on July 12 this year, and the selection of an independent program administrator.
It's a "very unusual and unique role" for the PRC because the commission isn't usually tasked with rule creation or program implementation, Maestas said.
A core part of New Mexico's Community Solar Act is its focus on providing solar energy to low-to-moderate-income communities, Maestas said.
According to the act, "30% of the annual statewide program capacity will be reserved for low-income customers and low-income service organizations." As well, each community solar facility must have at least 10 subscribers, and projects can't commit more than 40% generating capacity to a single subscriber, which "helps developer's ability to get financing," according to the act.
Some exemptions exist for Native Community Solar Projects, including facility size and subscriber requirements, as noted on the program's website.
Because rooftop solar is often too expensive for low-to-moderate income communities, establishing the Community Solar Program can make sure that these communities don't "fall through the cracks in the shift to a renewable energy future," Maestas said.
A report by the University of New Mexico's Bureau of Business and Economic Research shows that two-megawatt and five-megawatt solar array installations could create between 12 to 38 jobs per project, with between $463,000 and $1.64 million in labor income and between $1.64 million and $5.17 million in output.
