The 2013 session of the Minnesota Legislature passed an omnibus energy bill in May intended to significantly increase the generation of solar and other clean energy in Minnesota. From a solar mandate requiring public utilities to generate 1.5 percent of their energy from solar, to incentives for homeowners and businesses to acquire clean energy, the bill sends a clear message that Minnesota wants a faster track to more renewable energy. The bill, House File 729, was passed as part of a large omnibus jobs, economic development, housing, commerce, and energy bill and was signed by Gov. Mark Dayton on May 23. Articles 7-13 cover the energy portions of the bill. Articles 7-13 cover the energy portions of the bill.
A few highlights of the bill include:
- A new solar energy standard that requires four investor-owned electric public utilities (Xcel, Minnesota Power, Otter Tail Power, and Alliant Energy Interstate Power and Light) to provide 1.5 percent of their power from solar by 2020; 10 percent of the 1.5 percent must come from installations that are 20 kW or less.
- A provision that allows for the development of community shared solar, or “solar gardens,” in which a group of individuals may, instead of installing solar panels on their property, choose to invest in a shared system not more than 1 MW.
- A Solar Incentive Program for systems less than 20 kW that will run from 2014-2018 and be funded at $5 million per year by the Renewable Development Fund (for Xcel territory only).
- Expansion of the Made in Minnesota (MiM) solar modules incentive, with $15 million per year provided from 2014-2023; includes a $250,000 program for solar thermal systems. MiM program will be administered by the Minnesota Department of Commerce.
- For four investor-owned public utilities (Xcel, Minnesota Power, Otter Tail Power, and Alliant Energy Interstate Power and Light), net metering cap increases from 40 kW to 1 MW; customer is billed for net energy supplied by utility.
- Four investor-owned public utilities (Xcel, Minnesota Power, Otter Tail Power, and Alliant Energy Interstate Power and Light) may opt into a new Value of Solar tariff that compensates customers through a credit mechanism for the value to the utility for operating a distributed solar PV system interconnected to the utility system and operated by customers primarily for meeting energy for their own needs.
- Department of Commerce is required to perform new energy studies on the value of on-site energy storage, the value of solar thermal, and findings and legislative recommendations on miscellaneous energy topics. Commerce will determine parameters for a study about how the state can achieve an energy system that does not rely on fossil fuels.
- Limits on Guaranteed Energy Savings Program contracts extended from 15 to 25 years on state buildings.
- Terms of Property Assessed Clean Energy (PACE) financing extended from 10 to 20 years.
Click here to view the original story from the Minnesota Department of Commerce.
