Energy
Bill threatens to end Minnesota’s Community Solar Program
Minnesota is considered a national leader for community solar opportunities but a successful state program expanding solar access would end in the next few years if a bill is signed into law.
Minnesota launched its Community Solar Garden program in 2013, allowing people to link up to a shared array of Xcel Energy solar panels and receive credits on their energy bills.
Sen. Nick Frentz, DFL-North Mankato, supports a bill to end the initiative in 2028. He said he still wants the state to use more renewable energy but feels continuing the program does not make economic sense.
“Given Minnesota’s commitment to 100% clean energy by 2040, we want clean energy technologies to compete on price and reliability,” Frentz explained.
Frentz pointed out the Community Solar program still relies on above-market rates, despite the decreasing cost of solar power. He added the program is partially paid for by utility customers who do not subscribe to it. Two years ago, the state modified the program to address underlying issues and opponents of the bill want more time for the changes to work. They worry about reducing solar access for renters and lower-income households.
Patty O’Keefe, Midwest regional director for the advocacy group Vote Solar, cited state data at a recent hearing showing the Community Solar Program provides nearly $3 billion in net benefits to the whole state. She added Minnesotans already pay for energy they may not use.
“The reality is that utilities routinely socialize the costs of power plants, transmission lines and grid upgrades, whether or not every customer benefits,” O’Keefe emphasized. “Yet, when it comes to community solar, the same cost sharing principles are framed as a problem.”
O’Keefe noted Minnesotans who use community solar panels see their monthly energy bills drop by 3% to 8% on average. Bill supporters argued the state could better serve these households by steering them to options at competitive market prices. The bill has bipartisan support but faces stronger opposition among Democrats.