New Mexico solar grants reduce energy costs for public buildings in rural areas, state officials say

Rural governments in New Mexico are reducing energy costs due to a state grant to build community solar projects, state officials told lawmakers on Tuesday.

Solar projects at public buildings funded by the Local Solar Access Fund generated a 53% reduction in energy costs on average for predominately rural communities in the state since the program began accepting applications in January, New Mexico Finance Authority program chief John Brooks told lawmakers. Brooks spoke at a meeting of the interim Finance Authority Oversight Committee in Santa Teresa.

The Local Solar Access Fund sets aside $20 million for grants meant for solar energy and battery storage projects in rural and underserved communities. Counties, municipalities, school districts and tribal governments are eligible to apply for the grant, Brooks said. 

The goal of the fund is to reduce the burden of energy costs in low-income communities; support the local renewable energy workforce in New Mexico; and enhance community resilience during environmental emergencies, according to Brooks’ presentation to the committee. 

The law requires 60% of the total funding to go to rural communities. Of the current 34 approved grants, Brooks noted, 31 serve rural areas across New Mexico.

Rep. Patricia Roybal Caballero (D-Albuquerque) was a sponsor of the 2025 legislative bill that created the fund. She called the results so far “heartwarming” and that it lives up to the original concept of the bill.

“We didn’t envision the funds going to big land developers or private equity firms,” Caballero said. The purpose was to allow rural and low-income communities to “enter into the renewable energy world in a manner that would not cost them outrageous amounts.” 

The money pays for both project and technical assistance grants. Project grants, up to a maximum of $1 million, help applicants plan, construct and install solar energy systems. In September, 21 project grants — totaling $18 million — were awarded after meeting all eligibility criteria and undergoing New Mexico Finance Authority staff review, Brooks said. An estimated 91% of the allocated project grant funds went to rural communities.

Technical grants, up to a maximum of $50,000, help applicants with professional grant writing services for future federal or Local Solar Access Fund project grant applications. In June, 13 technical assistance grants were awarded, totaling $650,000. Of that total, 92% went to rural community applicants, Brooks said. 

Roybal Caballero underscored that the grants also help dispel fear or misunderstandings about renewable energy in New Mexico. Whatever socioeconomic background a New Mexican comes from, Roybal Caballero said, “we want those residents to understand that renewable energy is accessible to them and it’s affordable.”