New Mexico Housing Trust Fund Commits $3.5M for Solar Weatherization

A New Funding Stream for Low-Income Solar

The board of directors for Housing New Mexico (the New Mexico Mortgage Finance Authority, or MFA) approved a $3.5 million allocation from the New Mexico Housing Trust Fund to install solar-powered systems in homes already enrolled in the state's weatherization program. The set-aside was approved in November 2023 and represents one of the first dedicated state funding streams for rooftop solar on low-income households served by weatherization providers.

The funds flow through the NM Energy$mart Weatherization Program, a long-running initiative that helps income-qualified households cut utility costs by upgrading insulation, sealing air leaks, and replacing inefficient heating and cooling equipment. With the new allocation, eligible homes can now also receive solar photovoltaic systems at no cost to the resident.

How the Rollout Works

The first round of funding is being deployed by two provider networks: the multifamily weatherization service provider operating statewide, and the single-family provider covering the Las Cruces area in southern New Mexico. Housing New Mexico has said the program will expand to additional regions as the trust fund appropriation is drawn down and as the agency adds provider capacity.

To qualify, a household must already meet the income limits of the NM Energy$mart program, which prioritizes families at or below 200% of the federal poverty level and households that include seniors, people with disabilities, or young children. The solar installation is layered on top of the standard weatherization package rather than replacing any existing measures.

Why Solar Was Added to Weatherization

Housing New Mexico leaders have pointed to two drivers behind the expansion. First, federal weatherization dollars are generally restricted to envelope and equipment upgrades and cannot fund renewable generation directly, leaving low-income households largely shut out of the rooftop solar boom. Second, rising electricity rates in parts of the state have eroded the savings that traditional weatherization delivers, and pairing solar with efficiency work restores the household's bill relief.

The NM Energy$mart Weatherization Program is funded through a blend of sources, including the U.S. Department of Energy, the federal Low-Income Home Energy Assistance Program (LIHEAP), New Mexico Gas Company, PNM, El Paso Electric, and now the New Mexico Housing Trust Fund. Housing New Mexico administers the funding and contracts with regional nonprofit and local-government weatherization providers to perform the work.

What Homeowners Should Know

Households interested in the weatherization-plus-solar package apply through Housing New Mexico or their regional weatherization service provider. Because the solar component rolls out provider by provider, availability outside of Las Cruces will depend on when a local agency is brought into the program. Residents can check eligibility and find their assigned provider through the Housing New Mexico website or by calling the agency's homeowner assistance line.

The $3.5 million allocation is not a one-time stimulus payment and is not available as a cash grant directly to homeowners. Instead, the state pays the provider to design and install the system, with no repayment required from the household.