New Mexico establishes $20 million local solar grant fund

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Gov. Michelle Lujan Grisham approved House Bill 128, establishing a $20 million grant fund for solar energy and battery storage for tribal, rural and low-income schools, municipalities, and counties.

The fund will issue planning and implementation grants to the eligible groups for solar and energy storage projects. Projects are expected to provide electricity to community centers, libraries, schools, and fire stations, and infrastructure like water, wastewater, street lighting and more.

The bill states the fund will “provide grants to eligible entities to plan, design, construct, purchase, install and equip solar energy systems used to power buildings and infrastructure located within New Mexico.”

The Local Solar Access Fund was established with “temporary budget surpluses from oil and gas revenue,” which “provide a rare opportunity to invest in the future,” said Public Power New Mexico.

The fund is expected to help local and tribal governments secure fixed costs for energy use for the next 25 to 30 years.

Sen. Harold Pope (D-Albuquerque), a sponsor of the bill, said the fund “fills crucial funding gaps for rural and underserved areas, ensuring that all communities — no matter their zip code — can implement solar projects that cut energy costs, lower emissions, and enhance our resilience during fires, blackouts, and intense storms.”

The Governor also passed House Bill 93, which directs electric utilities to incorporate advanced grid technologies in their grid modernization projects. Kristina Ortez (D-Taos), a sponsor of the bill said upgrades to transmission line capacity are “100 to 1,000 times” less expensive than building new transmission.

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