The New Mexico Legislature's House Committee on Energy, Environment, and Natural Resources convened on February 8, 2025, to discuss critical issues surrounding solar energy and its impact on the state's energy grid. The meeting focused on the challenges and opportunities presented by the increasing adoption of solar energy, particularly in residential and commercial sectors.

The session began with a discussion on the implications of solar energy not being considered a base load power source. A committee member raised concerns about the necessity for utility companies to overbuild transmission lines to accommodate solar energy, which could potentially destabilize the grid. The expert present clarified that while transmission lines are costly—averaging about one million dollars per mile—they have a long depreciation life of 70 years. The expert noted that the integration of more residential solar systems could actually reduce congestion on utility lines, thereby lessening the need for extensive transmission infrastructure.

Further discussions highlighted a significant decline in solar project approvals from 2023 to 2024, dropping from approximately 4,000 to around 2,000. A committee member questioned the reasons behind this decrease, speculating on factors such as market saturation, cost, and potential better alternatives. The expert responded by attributing the decline to lingering supply chain issues stemming from the COVID-19 pandemic, particularly tariffs affecting solar panel production in China. However, they also pointed out that recent advancements in U.S. manufacturing capabilities are expected to lower costs and improve competitiveness in the solar market.

The committee acknowledged the importance of addressing these challenges to ensure the continued growth of solar energy in New Mexico. The expert emphasized that the cost of solar energy for consumers is significantly lower than traditional utility rates, which could benefit all ratepayers by mitigating future rate increases.

As the meeting concluded, the committee expressed a commitment to further discussions on the bill and its implications for the state's energy landscape. The next steps will involve continued collaboration with stakeholders to address the concerns raised and to promote the sustainable development of solar energy in New Mexico.