Solar in New Mexico

Solar Landscape in New Mexico

New Mexico's electricity market is served primarily by three investor-owned utilities: Public Service Company of New Mexico (PNM), El Paso Electric (EPE), and Xcel Energy's Southwestern Public Service Company (SPS). PNM is the state's largest utility, serving approximately 550,000 customers across central and northern New Mexico including Albuquerque and Santa Fe.

All three IOUs offer net metering under state law and participate in the Community Solar Act program. PNM also offers a Solar REC Incentive Program that purchases SRECs from residential and small commercial customers.

Permitting

Solar permitting in New Mexico is handled at the local jurisdiction level, with cities and counties managing building and electrical permits. The state has been supportive of streamlined permitting processes, though SolarAPP+ adoption varies by jurisdiction.

New Mexico's relatively small number of jurisdictions and supportive regulatory environment means permitting timelines are generally moderate. Most residential solar permits are processed within 1 to 3 weeks depending on the jurisdiction.

New Mexico's Solar Rights Act (NMSA 47-3-1 through 47-3-5) provides among the strongest solar access protections in the country. The right to use solar energy is declared a property right, and HOAs cannot effectively prohibit installation. Counties and municipalities are also restricted from banning solar collectors except in historic districts.

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