Albuquerque Development Commission recommends $2.4B in IRBs for Maxeon expansion

The Albuquerque Development Commission on Thursday recommended a sizable amount of money for Maxeon Solar Technologies’ massive facility it plans to construct and operate in Mesa del Sol.

The company, according to city documents, is requesting $2.4 billion in industrial revenue bonds and $20 million in Local Economic Development Act funding for the facility. The commission recommended that the city council approve both requests.

Sarah Allen, a spokeswoman for the city, said it is likely the request will go before the council in December or early next year.

Maxeon first announced its intent to build the solar cells and panels manufacturing facility in the Mesa del Sol area in August. The Singapore-based company’s facility will be its first expansion into the United States.

The city’s economic development director, Max Gruner, presented the project to the commission on Thursday, saying the company did not have to choose New Mexico while calling the expansion significant.

“New Mexico has always been an energy state. We need to continue to lead as we transition to alternative energies in a spirit of decarbonizing our atmosphere,” Gruner said. “And Maxeon coming to New Mexico is exactly that ingredient that is absolutely essential for us to be able to do that.”

Industrial revenue bonds, or IRBs, are incentives from government bodies that provide tax breaks for companies looking to expand into an area. In this case, the $2.4 billion represents how much money Maxeon is investing into the project and it will get a property tax abatement based on the amount.

The LEDA funding will come from both the state and city. The state, according to documents, will provide $18 million in LEDA, with the city providing $2 million. LEDA money is a government incentive for expanding or relocating businesses that stimulate economic development and provide benefits to the local community.

Documents further reveal Maxeon’s expansion into Albuquerque is expected to create significant job growth. The company expects to have roughly 1,500 workers by year five of operations and up to 1,773 by year 10.

Jobs also range from “Operator I” to “Site Head,” the latter of which is expected to have a salary of $231,745. “Operator II” is the most common job by the company’s third year of operation, which has a salary of $33,172.

Maxeon plans for the Albuquerque factory will be to manufacture silicon photovoltaic solar cells and assemble those solar cells into solar panels. The facility will make more than five million solar panels per year, which will be shipped to utility scale solar power plant customers throughout the United States.