OPINION: The Big Beautiful Bill could devastate NM's renewable energy industry

New Mexico is fortunate to benefit from the production and delivery of many kinds of energy which has been instrumental in job creation, entrepreneurship opportunities and adding to the economies of local and state government. The budget reconciliation bill in Congress, known at the Big Beautiful Bill, proposes to eliminate provisions of the Inflation Reduction Act (IRA) that would be devastating to New Mexico’s renewable energy industry. After passing the U.S. House of Representatives the bill is now in the Senate.

A few of the provisions that threaten the renewable energy industry include the elimination of the Clean Energy Production Tax Credit, the Advanced Manufacturing Tax Credit, the tax credits that incentivize rooftop solar and household electrification, and the Clean Energy Investment Tax Credit for larger projects.

How could this impact New Mexico? Renewable energy projects and thousands of jobs are at risk. The development of both small-scale renewable energy projects, such as residential and commercial solar installations, and large-scale renewable energy projects like community solar facilities and wind farms, would no longer be viable. Just in the solar industry alone, there are currently more than 70 solar companies in New Mexico, which include solar manufacturers and developers, currently employing more than 2,000 New Mexicans with thousands more predicted to be created over the next decade. This does not account for the other businesses associated with the industry, ranging from electrical supply distributors and professional services companies to lending institutions. In addition to the industry’s positive economic impact, many New Mexico homeowners, businesses, schools, local governments and tribes have been able to reduce their energy costs through the addition of solar energy.

The elimination of these IRA provisions will also severely impact energy manufacturing, which has grown exponentially in the United States over the past two years. Two solar manufacturing companies have made commitments to build factories in New Mexico, which would add hundreds of jobs and grow the tax base in our state. The Unites States, which now ranks third in the world for solar manufacturing, has seen a 500% increase in solar manufacturing capacity and can nearly meet its total demand for panels in 2024. This manufacturing build-out extends well beyond solar panels to include energy storage, mounting systems, power electronics and other parts of the supply chain.

A new analysis from Greenline Insights, in partnership with the Center for Climate and Energy Solutions, finds that delays to IRA programs since Jan. 20 have already resulted in $1.3 billion in lost economic output, climbing by $10 million each day, 1.64 million workdays forfeited by American workers and $485 million in lost wages, with an additional $3.7 million lost daily. Climate Power estimates that the total cost over time to New Mexico if these energy incentives are removed would be 20,342 lost jobs and almost $4 billion in new investment.

The Big Beautiful Bill is indeed big and will negatively impact many communities and industries. As the demand for electricity increases in the United States, New Mexico is poised to be a strong producer of energy. Let’s not lose that opportunity as a state and as a nation. We strongly encourage Congress to take a step back and reverse course on the bill’s provisions that would be devastating to the renewable energy industry.