Green Cost Share program helps Minneapolis neighbors unite for solar

In Minnesota, many homeowners see solar as unobtainable. Some believe it’s too expensive, too confusing, or that we simply don’t get enough sunlight to make it worthwhile. 

Organizations like Solar United Neighbors (SUN), a national nonprofit that works here in Minnesota, has a creative solution for overcoming some of these barriers: the ‘solar group buy’ model, which SUN often also calls ‘solar co-ops.’ (And believe it or not, most of Minnesota has about the same level of solar potential as Houston, TX!)

Image credits: National Renewable Energy Laboratory

Solar group buys can be more cost effective for individuals who want to go solar in a similar way that buying bulk groceries at Costco can be more cost effective. SUN organizes cohorts of local homeowners and leverages their collective buying power to secure competitive bids from solar providers. A committee composed of SUN’s Minnesota solar group buy members then selects the most appealing offer.

SUN works behind the scenes and with group buy cohort members to figure out the solar details for their home, and to secure additional incentives which can bring the price down even further. One incentive, specifically for solar group buy projects, is the City of Minneapolis’ Green Cost Share program. Depending on the size of the array and its estimated production, the city will offer funding to each home in the group buy; there are higher incentive rates for homes located in the city’s Green Zones, or for homes associated with an affordable housing or utility bill support program.

Last year, the Green Cost Share program contributed a total of almost $44,000 dollars to SUN’s 2023 Solar Co-op, just one of dozens of applicants to receive funding. Bobby King, SUN’s Minnesota Director, says this is all part of a much larger plan for solar, one that is unique, and welcome. “The city’s Climate Equity plan calls for 15,000 solarized homes by 2032. The Green Cost Share is a key incentive to help reach a very ambitious goal,” he says. 

When combined with other incentives, such as Xcel Energy’s Solar*Rewards program, the cost might even be free for some participants. “When you combine the Minneapolis Green Cost Share program with the Income-Qualified Solar*Rewards, it can cover the entire cost of the solar for a low-income homeowner… your payback period will be day one, since the homeowner paid nothing out of pocket,” says King.

Cohort members who don’t live in a Minneapolis Green Zone or fit other income-qualified guidelines still don’t have to wait long for their investment to pay off. SUN estimates that Minnesota buyers typically pay off the cost of their solar array after 10-12 years, less than half of the total lifespan of the system. King also claims that the Green Cost Share program can help buyers see profits a full year earlier than they would otherwise. 

Depending on the size of the array, net profit is estimated to fall between $10,000-20,000 after 25 years, regardless of whether the homeowner paid for the installation in cash or through a loan.

In King’s eyes, solar co-ops and group buys go beyond the rooftops of the home where solar is installed. He says, “when we [develop renewable energy] in a distributed way, more folks can benefit economically in the production of energy than when it’s centralized… It’s more resilient, it improves our grid, and it’s more accessible.” 

Learn more about the City of Minneapolis’ Green Cost Share program.

SUN’s most recent Solar group buy for the Twin Cities Area is open now and accepting members. It is free to join and there is no obligation to go solar.