Applications for the second year of the Made in Minnesota Solar Incentive Program will be accepted beginning January 1 and ending February 28, 2015. The program, entering its second year, helps fund new solar electric and solar thermal systems for Minnesota residents, businesses, and communities. The program is administered by the Minnesota Department of Commerce.
Program’s first year boosts state’s solar capacity
In 2014, the first year of the Made in Minnesota program, funding was awarded for 343 solar electric (or photovoltaic [PV]) projects and 20 solar thermal installations. The PV projects equal about 5.1 megawatts (MW) of electric capacity—equal to more than one-third of the state’s total solar capacity of 14 MW when the program began January 1, 2014.
Over 10 years, the program is expected to help fund 4,000 solar installations and increase Minnesota’s solar electric capacity by about 75 MW, more than a five-fold increase in the state’s capacity as of January 1, 2014. Currently, about 20 MW of solar capacity is installed in Minnesota.
Who can apply for MiM solar incentives?
The solar incentive program is available to customers of electric investor-owned utilities (IOUs) who install solar PV or solar thermal systems using solar modules or collectors certified as manufactured in Minnesota. Applications for the two parts of the incentive program—the Solar PV Production-Based Incentive Program and the Solar Thermal Rebate Program—will be accepted annually between January 1 and February 28 each year through 2023 and will be selected by lottery. Applicants can reapply if not selected. In addition, the solar PV incentive is available for community solar gardens (less than 40 kW).
Solar PV Production-Based Incentive Program
Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years. Owners of an approved and installed PV system will receive payments annually by July 1 based on the kilowatt hour (kWh) output of the system in the previous year.
There are incentive levels for three types of entities: Commercial For Profit, Nonprofit/Public, and Residential. Commercial For Profit and Nonprofit/Public systems must have capacities less than 40 kW, and Residential systems must not exceed 10 kW. Modules from two Minnesota companies—tenKsolar and Silicon Energy—have been certified for the program to date.
2015 Solar PV Incentive Amounts
Commercial For Profit below 40 kW DC Solar Incentives Amounts
- Silicon Energy Voyageur Modules SiE-V-275 = $.35/kWh
- tenKsolar Module XT-A 410= $.13/kWh
Nonprofit/Public below 40 kW DC Solar Incentive Amount
- Silicon Energy Voyageur Modules SiE-V-275 = $.35/kWh
- tenKsolar Module XT-A 410= $.15/kWh
Residential up to 10 kW DC Solar Incentive Amount
- Silicon Energy Voyageur Modules SiE-V-275 = $.37/kWh
- tenKsolar Module XT-A 410= $.25/kWh
Calculating a 2015 solar PV incentive
PV incentive amounts will vary according to several factors: system size, the modules used, how sunny it is in a year, and more. The following are examples of PV incentives for residential and commercial systems:
A resident who installs a 5 kW Silicon Energy Made in Minnesota-certified solar array that generates 6,446 kWh of electricity annually may be paid $2,385 (6,446 kWh x .37/kWh) each year for 10 years, or a total of $23,850. The amount of electricity produced, and therefore the incentive payment, will vary each year.
A business that installs a 30 kW commercial array of tenKsolar Made in Minnesota-certified modules that generate 42,516 kWh annually may be paid $5,527 (42,516 kWh x .13/kWh) each year for 10 years, or a total of $55,270. The amount of electricity produced, and therefore the incentive payment, will vary each year.
Solar Thermal Rebate Program
Rebates are available to commercial, multifamily, and residential property owners who install solar thermal systems using collectors certified as Made in Minnesota. The rebate is equal to 25 percent of the installed system cost up to a maximum of $2,500 for residential, $5,000 for multifamily, and $25,000 for commercial systems. Commerce will allocate about 50 percent of the rebates in each year to solar thermal hot water and 50 percent to solar thermal air projects if sufficient applications are made for each category.
A solar thermal system is considered “Made in Minnesota” if components of the system are manufactured in Minnesota and the solar thermal system is certified by the Solar Rating and Certification Corporation. The solar thermal systems may be installed for, among other purposes, water heating, space heating, and pool heating purposes. To qualify for the rebate, the thermal systems must be installed by a factory-authorized installer.
The Made in Minnesota-certified solar thermal manufacturers include Energy Conservation Products and Services, Rural Renewable Energy Alliance, and Solar Skies. The collectors listed below are certified as Made in Minnesota:
- Energy Conservation Products and Services: Solarway 6000
- Rural Renewable Energy Alliance: SPF 26, SPF 32, SPF 40
- Solar Skies: SS-16, SS-18, SS-21, SS-24, SS-26, SS-28, SS-32, SS-40, SS-50. NSC-21, NSC-24, NSC-26, NSC-28, NSC-32, NSC-40
For more information on the MiM initiative…
The Made in Minnesota Solar Incentive Program has an annual budget of up to $15 million for 10 years, including $250,000 per year for solar thermal rebates. Approximately 50 percent of the incentives will go to residential systems and 50 percent to commercial for both the solar thermal and solar PV parts of the program. The program is funded by 5 percent of each electric investor-owned utility’s total annual Conservation Improvement Program budget, with remaining funds provided through the Xcel Renewable Development Fund.
Click here to get more information on the Made in Minnesota program. Questions can be directed to the Department of Commerce Energy Information Center at energy.Info@state.mn.us or 651-539-1886 or 1-800-657-3710.
