New Mexico will receive millions in federal money to increase access to solar power.

The U.S. Environmental Protection Agency announced recipients of the $7 billion Solar for All competition awards on Monday. The state will receive $156 million through the program, which is enough to increase solar access for more than 21,000 households.

The New Mexico Energy, Minerals and Natural Resources Department will oversee the state’s Solar for All program.

“The EPA’s Solar for All program is an unprecedented investment in clean, affordable renewable energy for low-income communities across the country,” Gov. Michelle Lujan Grisham said in a press release. “It is only natural that New Mexico—a national leader in clean energy —would be among the states selected to participate. This will help ensure that all New Mexicans, regardless of income level, can benefit from our clean energy transition.” 

The funding was made available through the 2022 Inflation Reduction Act, which created a $27 billion Greenhouse Gas Reduction Fund that includes the Solar for All program.

EPA Administrator Michael S. Regan said the entities selected to receive the federal funding will use it to advance “solar energy initiatives across the country, creating hundreds of thousands of good-paying jobs, saving $8 billion in energy costs for families, delivering cleaner air, and combating climate change.” 

Access to solar energy for low-income communities is important because utility bills are increasing. According to the U.S. Energy Information Agency, in 2023 residential electricity rates increased at a rate of 2 percent per month. The average American pays $138 monthly for electricity.

Rooftop solar can lead to lower electric bills, which can help households that might otherwise have to make tough decisions like whether to buy groceries or pay their utility bill.

However, the initial costs to install solar panels can put these benefits out of reach for many families.

“Residential solar electricity leads to reduced monthly utility bills, reduced levels of air pollution in neighborhoods, and ultimately healthier communities, but too often low-income and disadvantaged communities have been left out,” U.S. Department of Housing and Urban Development (HUD) Acting Secretary Adrianne Todman said in a press release.

She said the Solar for All funding will “invest billions to ensure that affordable housing across the U.S. can access solar and increase energy efficiency and climate resilience.” 

The EPA estimates that the $7 billion in funding will lead to $350 million in annual savings nationwide for about 900,000 households that are struggling to pay utility bills.

“With the fires, drought and heat that New Mexico is experiencing because of the global climate crisis, there is real hope in being awarded $156 million dollars to superpower the Community Solar Program,” Camilla Feibelman, director of the Rio Grande Chapter of the Sierra Club, said in a press release. “The federal Solar for All funding will allow [the] State Energy Office to prioritize energy for unelectrified homes and families especially in our most rural and underserved communities all while reducing our contribution to climate change.” 

In New Mexico, EMNRD and its partners will use the funding to expand access to arrays that can provide energy to multiple households beyond what is currently allowed in the community solar program. The focus will include bringing power to households that currently do not have access to electricity.

“Our Solar for All Program is designed to reach New Mexico’s underserved communities by focusing on supporting shared solar access projects in rural and tribal communities,” EMNRD Deputy Secretary Dylan Fuge said in a press release.  

The state says models indicate the Solar for All program will add 21 megawatts of solar energy capacity to New Mexico’s power grid and will also add 8.1 megawatt hours of stored energy that can be used when there is not enough sunlight to generate power through photovoltaic arrays.

EMNRD’s Energy Conservation and Management Division plans to include storage with the Solar for All projects whenever possible.

 “Our first step is forming an Environmental Justice Advisory Committee to help us ensure that the program delivers benefits most effectively for low-income residents,” ECMD Division Director Rebecca “Puck” Stair said in a press release. “We want these funds to provide the highest possible value to our residents both environmentally and economically.” 

A nonprofit known as GRID Alternatives’ Western Indigenous Network Solar For All program will also receive funding that could benefit New Mexicans. The nonprofit received more than $62 million that will help with energy sovereignty efforts while also addressing environmental destruction and climate change. The program operates nationwide, but prioritizes Tribal communities in Colorado, Nevada, New Mexico and Utah.

“Solar for All represents an almost literal breath of fresh air for millions of Americans. Together with our partners, GRID Alternatives is excited to work with EPA to build on our work over the last 20 years, expanding access to solar energy and its benefits, including real savings, quality jobs, and a better environment for folks,” Erica Mackie, GRID Alternatives CEO and co-founder, said in a press release. “Our mission to build community-powered solutions to advance economic and environmental justice through renewable energy is supercharged by this award. Our team of leading nonprofits and partners, which includes high-profile affordable housing organizations with deep community roots and a long history of providing affordable housing, looks forward to genuinely engaging community stakeholders to tailor these game-changing resources.”