Community Solar Frequently Asked Questions

BASICS

  • Unlike solar panels which are installed on the customer’s rooftop and are solely for the use of one household or customer, community solar is shared by multiple utility customers in a utility’s service territory. It allows members of a community the opportunity to share the benefits of solar power even if they cannot install solar panels on their property. Community Solar involves households, small businesses, and non-profits subscribing to receive credit for a portion of the energy generated by the larger, off-site solar installations. A utility customer can subscribe to any project within their utility’s service territory. For example, a PNM customer living in Santa Fe can subscribe to a community solar facility on PNM’s grid in Silver City. Subscribers will then receive discounts on their electricity bill based on the amount of solar energy generated through their subscription. Their total savings will depend on the subscription costs for each project. Community Solar allows customers to reap the benefits of solar energy without the upfront costs, maintenance costs, or hassles of installing a solar array on their home or business.

  • Community Solar is available to New Mexico households that pay an electricity bill with PNM, El Paso Electric and Xcel Energy (SPS).

  • When you subscribe to Community Solar you will be receiving a credit on your electricity bill equivalent to the amount of solar energy produced by a portion of the community solar facility that you subscribe to.

  • The power you subscribe to does not flow directly to your house or business, but is fed into the electric grid and distributed to the nearest consumers. You receive a credit on your electricity bill.

  • Community Solar facilities can take 1 - 1.5 years to build and come online. It is anticipated that electricity from community solar facilities will begin flowing into the utility distribution grid by Summer/Fall 2025. You can sign up for a subscription now, but you won't be charged until the facility is producing power.

    While this is taking place, persons within the service areas, (customers of PNM; EPE and SPS), are encouraged to learn more about and sign up for Community Solar. In addition, Community Solar Subscribing Organizations may be reaching out to you, asking that you sign up with their project. As you begin the journey with Subscribing Organizations, we encourage you to view our section below titled “What consumer protections are in place?”

  • The New Mexico Community Solar Act created an initial statewide program of 200 MW through November 2024. Each Community Solar facility can provide a maximum of 5 MW of solar-generated electricity. There are currently 6 projects being created within the EPE service area, 10 projects in the SPS service area and 29 projects within the PNM service area.

  • You can subscribe to a community solar project in order to get credit for all or a portion of your annual electric consumption.

  • You are eligible to sign up for Community Solar if your electric service is provided by one of the three investor-owned electric public utilities which are: Public Service Company of New Mexico (PNM); El Paso Electric (EPE) and Xcel Energy (SPS).

  • We encourage you to review the Comparison Chart. This chart will provide a list of the names of the Subscriber Organizations and identify the territory they cover. Studying this chart will help guide you to the Subscribing Organization that best fits your needs.

    You can visit the official community solar website for a list of projects and contact numbers

  • No, you should see a net decrease in the cost you pay for electricity, with greater discounts for income qualified households.

  • There is no catch! Solar generation is now one of the cheapest forms of power generation, especially in sunny states like New Mexico. And the program has created incentives for developers to give greater discounts to income qualified households.

  • Yes. Subscribers will still need to pay their discounted utility bill and pay another bill for their community solar subscription.

  • Bill credits will vary depending on your subscription contract (refer to your contract for specific terms and conditions). You will get a bill credit based on the amount of electricity produced by your share of the project, resulting in a discounted utility bill. The value of the bill credit is set by the Public Regulation Commission. The customer will likely see the kilowatt-hour credit appear on their monthly utility bill as a dollar credit to the subscriber’s billed amount.

  • This depends. We expect that different community solar projects will offer different subscription terms, so make sure to shop around. We expect the subscription cost plus the discounted electricity bill from your utility will be at least 10% less than your current electricity bill. For low income subscribers the total savings may be closer to 20%.

PARTICIPATION

  • Electric coops and munis are not required to participate in New Mexico’s community solar program, and have the right to opt-in if there is enough support from their customers. To participate, a community solar facility will have to be built within the co-op or muni’s own distribution grid. They cannot subscribe to a project in another utility’s service territory.

  • Yes. Tribes and pueblos are sovereign entities and are not subject to the capacity cap or other restrictions of New Mexico’s community solar program.

  • Historically, low-income access to renewable energy resources has been limited by cost barriers, lack of communication about programs and opportunities, and a scarcity of renewable energy projects accessible to low-income neighborhoods. To remedy this historical lack of access, New Mexico is requiring a minimum of 30% of the energy from each community solar project to serve subscriptions for low-income households or low-income serving organizations.

  • Any household will automatically qualify as Low Income if they are participating in one of the following programs:

    (1) Medicaid;

    (2) Supplemental Nutrition Assistance Program (SNAP);

    (3) Low-Income Home Energy Assistance Program (LIHEAP);

    (4) first-time homeowner programs and housing rehabilitation programs;(5) living in a low-income/affordable housing facility;

    (6) state and federal income tax credit programs.

    If a household isn’t participating in one of these programs they can qualify by providing documentation of their household size and annual income. A low-income household in the community solar program is defined as a household that makes less than 80% of your county’s Area Median Income (AMI). For example, in Bernalillo County in 2022, 80% AMI for a household of 1 person is $42,300, 2 people is $48,350, 3 people is $54,400 and 4 people is $60,400.​

  • Yes. The community solar program is intended for customers that are not able to participate in traditional rooftop solar. This includes renters and homeowners that are not able to place roof-top solar on their homes. Any household that pays a utility bill to PNM, SPS, or EPE can subscribe to a community solar program operating within their utility’s service territory.

  • If you move within the same utility’s service territory in New Mexico, you may be able to bring your subscription with you. You will just need to transfer your utility account to your new address and inform your community solar subscriber organization.

CONSUMER PROTECTION

  • As with any business deal, READ YOUR CONTRACT CAREFULLY and make sure you understand and agree with the terms and conditions before you sign. Each subscriber organization is required to provide a uniform disclosure form to a potential subscriber, in English, Spanish or other appropriate Native languages and allow them a reasonable time to review the form’s disclosures before entering into any agreement.

    The key contract terms to be disclosed on the form are Subscription Size (kW DC), Estimated Contract Effective Date, Contract Term (months or years), Option to Renew, Enrollment Costs/Subscription Fees, Payment Terms, Rate Discount, Estimated Total One Year Payments, Early Termination Fees or Cancellation Terms, and Subscription Portability or Transferability.

    Complaints by subscribers against subscriber organizations may be submitted to the Program Administrator (admin@csnewmexico.com) or to the Public Regulation Commission’s consumer relations division for informal resolution. The commission may refer serious issues to the attorney general’s office.

    Visit the Consumer Protection Hub on the official program website or more information.

  • Each subscriber organization has been mandated to develop and implement a written subscriber agreement containing the organization’s terms and conditions for subscribing to its project. Make sure the subscriber agreement includes the following terms:

    General project information; the effective date and term of the agreement; Identification of all charges and fees; Payment details; Information about the bill credit mechanism; A comparison of the subscriber’s net bill with and without the subscription; the terms and conditions of service; the process for customer notification if the community solar facility is out of service; the customer protections provided; Contact information for questions and complaints; and the subscriber organization’s commitment to notify the subscriber of changes that could impact the subscriber

    Should you encounter an offer without this information or lacking the Subscriber Disclosure document please immediately report this information to the Program Administrator. (Program Administrator: admin@csnewmexico.com)

  • There are a few questions you should ask before signing up for community solar.

    ● Is there a credit check required?

    ● What is the length of the term of the contract?

    ● Is there a cancellation fee?

    ● How long will it take to process a cancellation?

    ● Is there an email address or phone number for further questions?

    ● What are the expected savings?

    As with any contract, make sure to read it carefully and if you have questions, be sure to ask. It’s also always good practice to do some research regarding the company you are signing the contract with. Make sure to compare savings, terms, and conditions between different projects before choosing one.