Biden boosts solar energy through executive action as industry grows in New Mexico

Solar power in New Mexico continued to grow this year, supported by public and state policy seeking to diversify energy production throughout the state while addressing concerns for pollution.

A Tuesday report from the Solar Energy Industries Association for the second quarter of 2022, showed New Mexico rising to 21st in the nation for solar power from last year’s rank of 30th.

A total of 1,289 megawatts of solar energy were installed this year as of June, per the report, compared with about 73 MW last year.

That’s enough power for 306,764 homes in New Mexico, the report read.

In the next five years, the report predicted another 2,642 MW would be installed in New Mexico, lifting its rank to 13th in the nation.

About 6 percent of the state’s energy came from solar, per the report, and use was expected to expand while the cost of solar energy was forecast to decline by 50 percent in the next decade.

The solar industry invested about $2.5 billion in New Mexico since it came to the state, the report read, including $182 million in 2021.

Recent federal action could see that industry grow as businesses building and developing solar installations got a boost from the White House.

A proclamation issued by President Joe Biden could mean increased growth in solar power in New Mexico as the sector grows throughout the state while the nation grapples with energy shortages tied to oil and gas supplies.

Biden announced earlier this week the two-year suspension of tariffs on foreign-made solar panels, mostly built in China, that companies pay to import the devices necessary for solar power arrays both at the utility and residential scale.

He declared an “emergency” regarding the U.S.’ electricity generation capacity, invoking the Defense Production Act to encourage more energy production in the U.S. amid a ban on oil from Russia after it invaded Ukraine earlier this year.

The move was in response to pressure from New Mexico’s senior U.S. Sen. Martin Heinrich (D-NM) calling on the federal administration to support expanded use of renewable energy and shift the country away from its reliance on fossil fuels.

New Mexico is second in the nation in oil production, and the industry supports more than a third of the state’s budget.

But in recent years, Democrats have sought to establish the state as a leader in other forms of energy, arguing such a transition was needed to address pollution originating from New Mexico’s oilfields while also supporting its economy.

“I’m pleased President Biden is using his executive authority to take decisive action to build an American-made clean energy future and address the climate crisis,” Heinrich said upon the order’s announcement.

“Today's actions will save thousands of American jobs, keep game changing utility-scale solar projects on track for construction, and build a bridge for our domestic solar component manufacturers to scale up their operations and become more competitive on the global market.”

The order would also support local businesses in New Mexico, Heinrich said, by reducing costs for those looking to import and install solar panels.

The growing industry was essential, Heinrich said, to establishing the U.S. as energy independent as all of its solar energy was produced domestically, compared with fossil fuels that are largely imported from overseas.

“Installers and solar equipment companies are almost entirely American-owned and operated, and they are critical to local economies and our energy independence,” he said. “When we make the right choices and strategic policy decisions now, the future of American clean energy could not be brighter.”

Heinrich was joined by U.S. Sens Sheldon Whitehouse (D-RI) and Brian Schatz (D-Hawaii) in calling on the federal government to use his executive power in support of solar energy and oppose recent petitions to increase tariffs on solar panels through the U.S. Department of Commerce.

The senators contended the solar industry supports 250,000 jobs across the country, a growing sector they argued could boost the economy while decreasing the environmental impact of American energy.

“Today’s executive actions will save and create thousands of American jobs, lower costs for families, keep solar projects on track to support the reliable operation of our electricity system, and build a bridge for our domestic solar manufacturers to scale up their operations and become more competitive in the global market,” read a joint statement from the three senators.