A study by the University of New Mexico projected that community solar projects could generate over $400,000 in labor income and create high-paying jobs within five years, among other benefits.
Five years later, however, that projection remains a promise. A closer look into the state’s community solar rollout reveals a program bogged down by regulatory delays, grid bottlenecks, and policy disputes. Only a fraction of its planned capacity is actually delivering power to residents.
A program built on promise
Gov. Michelle Lujan Grisham signed the Community Solar Act in 2021. The law provides the framework for residents and small businesses to participate in community solar projects.
Under the law, households, especially low-income residents, could subscribe to small solar farms and receive credits on their electricity bills instead of installing rooftop solar panels. The concept was straightforward: expand access, reduce costs, and accelerate clean energy adoption.
The numbers tell a different story
State data paints a starkly different picture. Forty-seven projects were awarded in May 2023, with an expected total capacity of about 200 megawatts. Of the 47, only 12 are operational, producing 54.73 megawatts.
That’s barely over a quarter of the program’s initial target.
“It’s been a hard grind,” said Jim Desjardins of the Renewable Energy Industries Association of New Mexico, pointing to slow interconnection processes. It requires technical and regulatory steps to connect solar farms to the grid.
Policy gridlock and legal hurdles
Beyond technical constraints, the program has faced internal turbulence.
Since its launch, community solar has undergone multiple rulemaking revisions and even a challenge before the state Supreme Court. Now, the state’s Public Regulation Commission (PRC) is preparing another overhaul of the Community Solar Program.
The delays are not only administrative. They are financial.
Federal incentives that underpinned the economics of solar development are now winding down. The law signed by President Donald Trump on July 4 removed eligibility for the 30 percent federal tax credit for direct solar purchases after 2025.
That deadline has heightened pressure on regulators. “If Commission processes do not align with investment tax credit deadlines, projects … may be unable to monetize federal incentives fully,” warned the Coalition for Community Solar Access in its filing.
Strong solar demand, weak delivery
However, interest in the program is not the problem. Developers submitted 408 proposals totaling 1.7 gigawatts when bidding opened in 2023.
Big players and local companies are ready to build. Recent announcements from developers, including Forefront Power and Standard Solar, signal continued momentum. Several projects are already powering communities with thousands of households enrolled.
Regulators are preparing to revise the rules again. But the gap between ambition and execution is becoming harder to ignore.
The UNM study laid out a vision of rapid economic gains, job creation, and energy equity. But without faster approvals, clearer cost structures, and streamlined grid access, those projections risk becoming aspirational rather than achievable.