Regina Wheeler, CEO of Positive Energy Solar
Above the New Mexico state capital in Santa Fe flies a brilliant yellow flag with a modern interpretation of an ancient Native American symbol for the sun. Given the growing adoption of solar in New Mexico, it’s also a perfect representation of the state’s enthusiastic embrace of renewable energy.
New Mexico is a natural leader for solar. With 240 MW of photovoltaic systems currently installed, it ranks 10th in the country in solar capacity. There is enough solar installed to power 54,800 homes. In many ways, New Mexico is a national model for solar, having created a pro-solar environment that encourages adoption and removes potential barriers.
In 2004, the state’s renewable portfolio standard (RPS) was signed into law, requiring utilities to include a percentage of renewable energy on their electric grids. In 2006, the state’s legislature created powerful incentives when it passed the Solar Market Development Income Tax Credit. Today, homeowners can receive a 10% tax credit up to $9,000 on a solar system.
To ensure access to solar, in 2007 New Mexico passed a law prohibiting homeowners associations and cities from passing codes that would prohibit solar power systems. That same year, the RPS was doubled. New Mexico now requires that 20% of the state’s energy be produced by renewable sources by 2020, 20% of which must be from solar.
This policy environment has created a domino effect of opportunity. Solar generation is a major growth industry in the state. Nearly 90 solar companies now operate in New Mexico, employing roughly 2,000 people. These companies, including contractors like Positive Energy Solar, installed 45 MW of solar electric capacity in 2013, representing $131 million in investment. This was a 61% increase over 2012, and the adoption is expected to continue to rise in 2014.
What’s worth noting is the diversity of solar adopters in New Mexico. Installations range from small agricultural enterprises to high-end art galleries —both major industries in our state —to colleges and schools, restaurants, multi-family developments and homes, medical offices and community centers. One thing is consistent: a shared passion for adopting renewable energy for environmental and financial reasons. In New Mexico, solar is the right thing to do.
Fueling adoption is the declining price for solar. The average price for installed residential and commercial photovoltaic systems in New Mexico dropped by 7% in 2013. Nationally, solar installation prices for homes and businesses declined by 4%. The price has dropped approximately 30% over the past three years. Prices may be nearing the minimum, however, as solar module prices stabilize and global demand increases.
New Mexico continues to serve as a national leader in solar policy. In July, Rep. Ben RayLuján and Rep. Peter Welch co-sponsored a bill in Congress that would increase renewable energy minimums for utility companies and promote energy savings through greater efficiency. In a statement Lujánsaid:
A renewable energy standard will drive the development of the clean energy sector, creating good jobs in communities across the country, especially New Mexico where we are home to abundant renewable resources.
Under the proposed standards, utilities would be required to incorporate a minimum of 25% of electricity from renewable sources by 2025. Energy efficiency programs for electric and natural gas utilities would also be required to save the equivalent of 15% and 10% of sales respectively by 2025.
Looking ahead, the stars —and the sun —are aligned for New Mexico’s solar industry. We have a populace ready to adopt and companies qualified to create and install the best, most efficient solar solutions. With new transmission infrastructure, we are capable of exporting large quantities of clean, solar-generated power. Thanks to strong leadership and smart energy policy, New Mexico will only grow in stature and in use of sustainable solar energy.
By: Regina Wheeler is CEO of Positive Energy Solar, a 2014 Solar Power World Top 400 contractor.
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