First solar co-op launches in San Juan County

Business owners and homeowners in northwestern New Mexico have a chance to join San Juan County’s first solar co-op to purchase individual solar installations at a lower group price.

The co-op will also be looking for installers to set up or expand solar energy systems. Requests for proposals are expected to open around March 2024.

This is the first solar co-op in San Juan County, an area in northwestern New Mexico with a deep history of oil and gas production.

The new solar co-op is a way for residents and small businesses to come together to purchase solar energy as a group so it’s more affordable.

A year ago, Farmington resident David Fosdeck and other clean energy advocates said Farmington lacks affordable solar energy options. Now, Fosdeck is acting as a consultant for Solar United Neighbors, the nonprofit that announced the co-op launch on Wednesday.

The San Juan Citizens Alliance, Western Leaders Network, Solar for Women and Tó Nizhóní Ání (Sacred Springs Speaks) are also partners on the project.

Foosdeck said anyone who lives in San Juan County and is interested in the project can join the co-op without having to sign a contract to install solar. Spreading the word about the co-op and signing people up will be the focus for the first couple of months, he said.

When there’s a critical mass — probably about 20 people who commit to solar installations — the process starts moving forward with roof evaluations or electrical analysis, he said.

When the co-op has enough members, Fosdeck said, Solar United Neighbors will open an RFP process to choose installers to set up the solar.

Fosdeck said the selection process will be open to anyone who’s interested. He said there aren’t many local installers — he only knows of one in the area — so interested installers could come from New Mexico or out-of-state.

“We’ll float it out to everyone out there,” he said.

He said a steering committee will vet installers to determine if there’s a preference for a local vendor.

Interested installers can learn more at Solar United Neighbors’ website.

After the installer selection, Fosdeck said, it’ll take another four to eight months to sort out details like prices and paperwork, and get installation done.

This launch comes as San Juan County figures out paths forward to recover from the 2022 shutdown of the San Juan Generating Station, a coal-fired power plant. About 450 workers directly lost their jobs because of the closing. Fosdeck said skills those workers have overlap with installing solar, from the roles of electricians or roof technicians to the sales and management side of the industry.

“The skill sets of the workers from the mine and the power plants are a perfect fit for installing solar, via utility-scale or residential,” he said.

The co-op effort could pull in more jobs. Fosdeck said 15 Arizona co-ops Solar United Neighbors completed created 74 jobs.

He also said it’s a significant revenue generator. In the San Juan County area, he said, 165 solar energy systems were installed in the past year. Taking into account the cumulative wattage, he said, the revenue would total about $3.4 million.

“It adds up,” he said.

Local business owners can take advantage of grants and financing to get their solar energy going. The Rural Energy for America program provides grant funding and guaranteed loan financing for rural small businesses for renewable energy systems or energy-efficiency improvements.

There are also state and federal tax credits for solar. The New Mexico market development tax credit incentive offers up to 10% of equipment, materials and labor costs of a solar energy system for up to $6,000. There are also investment or product tax credits through the federal government, and amounts vary depending on construction start date.

Fosdeck said solar is more affordable now than it has been in the past because of federal support, such as credits included in the Inflation Reduction Act.

“Solar is inevitable,” he said. “It’s going to be part of the transition.”

There’s an informational public meeting on the co-op 6-8 p.m. Dec. 17 at the Farmington Civic Center.