Government Energy Policy, Business and Technology

Minnesota may ease transition to new community solar rates

Energy News Network: As rates of return are expected to fall for subscribers to Minnesota community solar projects, state regulators are considering an incentive payment to ease the transition.

The “adder” would temporarily increase payments that future subscribers would receive when selling electricity to Xcel Energy, which operates the program.

Customers who signed up for community solar before 2017 receive an “applied retail rate” of 12 to around 15.5 cents per kilowatt hour (kWh) for electricity they sell back to the utility. After 2017, the program switched to a “value of solar” rate that is currently around 10 cents per kWh. While the rate is calculated every year, it does not change for subscribers once they enter a contract.

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