Note: This program is only available to customers of one of the state's investor-owned utilities (Alliant, Minnesota Power, Otter Tail Power Company, Xcel Energy). Customers of a municipal utility or rural electric cooperative are ineligible for this program.
By January 31, 2014, the Minnesota Department of Commerce (DOC) must develop a distributed solar value methodology and submit it to the Public Utilities Commission (PUC) for approval. The DOC must consult with stakeholders in order to develop the methodology, which must take into account: the value of energy and its delivery; generation capacity; transmission capacity; transmission and distribution line losses; and environmental value. The DOC may also consider: the cost or benefit of solar operation to the utility; credit for locally manufactured or assembled energy systems; and systems installed at high-value locations on the grid.
Once the tariff methodology is approved by the PUC, affected utilities may offer either the Value of Solar Tariff (VOST) or Net Metering.* The utility must apply for PUC approval, and the PUC may only approve the tariff if it:
The tariff rate cannot be less than the retail rate used for net metering until three years after the PUC approves the utility tariff.
*Utilities that offer a Community Solar Garden program (see Minnesota's Net Metering law) must compensate systems at the VOST rate. Because Xcel is required to offer a Community Solar Garden program, they will be required to offer a VOST.
|Minnesota Department of Commerce
|Eligible Renewable/Other Technologies:
To be determined by the Department of Commerce
Rates are locked in for the full 20-year contract
|20-year contract between utility and system owner
|Eligible System Size:
|Up to 1 MW
|Ownership of Renewable Energy Credits:
|Commerce Energy Information Line
|Department of Commerce
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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