Minnesota's 1.5% solar energy mandate takes effect

Date
06/04/2013

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Minnesota legislature approved a 1.5% solar energy mandate that will potentially raise the state's solar output from 13 MW to 450 MW by 2020. On May 23, 2013, Minnesota Governor Mark Dayton signed the Omnibus Energy Bill (HF 956) into law, establishing a solar energy standard and a set of provisions aimed to encourage investment and deployment of solar energy in Minnesota. The solar energy standard requires investor-owned utilities to generate at least 1.5% of total power sold to retail customers from solar energy by 2020, to reach a goal of 10% by 2030. The solar mandate is in addition to the existing renewable energy standard, which requires 25% of power generation from renewables by 2025. It would potentially raise the state's solar output from 13 MW to approximately 450 MW by 2020. The legislation exempts iron mining facilities, paper mills, and wood product manufacturing facilities from the mandate. The legislation requires at least 10% of solar power to come from small projects (20 KW or less), and provides installation incentives. Xcel Energy, the state's largest utility, is required to incentivize qualifying projects from its renewable energy development account at the rate of $5 million per year for the next five years. It is also required to submit a community solar garden proposal to the Public Utilities Commission (PUC) by September 20th. Subject to approval by the PUC, the program will allow utility customers and designated community members to purchase solar panels to establish solar arrays in communal locations. The legislation creates a performance-based incentive for projects using Minnesota-made solar photovoltaic modules. It allots $15 million in incentives to owners of grid-connected solar installations generating less than 40 KW from 2014 through 2023. By increasing the net metering limit from 40 KW to 1,000 KW, the legislation enables solar installation owners and distributed generation services to get credit for excess power directed to the grid. With the new rule, Minnesota has become the 17th U.S. state to pass a solar energy mandate. Energy Solutions Forum

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