Minnesota

Subscribers across many existing community solar projects in Minnesota are no longer going to get the full value of savings they signed up for. In early August, the Minnesota Court of Appeals confirmed a 2024 decision from the PUC that all subscribers currently receiving the applicable retail rate (ARR) will now receive the less valuable value of solar (VOS) rate. We’re generally looking at a 20-30% cut to the savings these customers signed up for and have been receiving to date. These projects and subscribers rightfully expected 25 years-worth of ARR credits when they energized. Industry and ratepayer advocates are exploring the best path forward to challenge the decision so perhaps there will be better news to share later this year.

Our thoughts are with the families of House Speaker Melissa Hortman and Senator John Hoffman after the tragic attack in June. Speaker Hortman was a consistent advocate for community solar and by all accounts a wonderful force in Minnesota politics. Senseless violence has no place in this country and members of the clean energy industry will honor her legacy by continuing to fight for the issues that she kept front and center. The legislature did end up passing its energy omnibus bill in June, but only after removing the provision that would have ended the inclusive community solar program in 2028.

In Minnesota, we’re still watching an energy omnibus bill that could end the inclusive community solar program in 2028. Just before the session ended on May 19, members from both chambers were assigned to a conference committee to align on legislative language, which we’re expecting to move forward during a special session in June. While the dates for that are still unknown at the time of writing, we do know that budget bills like this energy package have to pass by June 30 in order to avoid a government shutdown. The current bill would prevent up to 500 MW of community solar that could otherwise be added to Minnesota’s grid by 2035.

The Department of Commerce launched the second year of its community solar program with another 100 MW in February, but all eyes are on the legislature as an omnibus bill (SF 2393) that would terminate the program in 2028 is moving through the senate. If the bill is signed into law, a potential 500 MW of community solar expected to come online by 2035 would disappear. It should be more difficult for the bill to pass the house but with such high stakes, community solar organizations and local advocates are working hard to oppose the package.

The Department of Commerce made 100 MW available in 2024 to kick off its new community solar program and all of that capacity has now been taken up; more than 10 projects are online. February 12, 2025 marked the beginning of another 100 MW through the end of the year. This time, Commerce will review applications in monthly batches and the application portal will remain open, rather than closing between batches like it did last year. The project scoring system has also been modified to award 2 points for every 2.5% increase in the discount for LMI subscribers.

The news out of Minnesota is that Xcel has launched a consolidated billing service to new projects in the Low- and Moderate-Income Accessible CSG Program, though it’s far from a perfect offering. Unlike what we’ve seen in any other market, Xcel will be charging subscribers a sales tax on the subscription fee and each subscriber will have to manually opt in to the single-bill system on their disclosure form. Xcel also currently has no plans to offer consolidated billing to legacy projects.