Minnesota first state in US to adopt ‘value of solar’ approach for community solar

Facebook
Twitter
LinkedIn
Reddit
Email
Minnesota's massively oversubscribed community solar project is to debut a value of solar tariff to assess how subscribers should be paid by the utility. Source: Flickr/Clean Energy Resource Team

Last week, Minnesota utilities regulators ruled to take a value of solar approach for determining how community solar customers will be paid – making Minnesota the first state in the country to do so.

The Minnesota Public Utilities Commission (PUC) also maintained cap sizes on community solar gardens, which could put a downer on future project proposals. The decision to not expand the cap was due to the oversubscription of the state’s solar garden programme, which was launched in late 2014 and administered by Xcel Energy. Solar projects already in the application process with the utility are to be limited to 1MW of output.  

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The value of solar approach is currently voluntary for utilities and takes into account external factors and this arguably therefore a more detailed valuation of solar. The PUC first implemented this tariff in 2014 – providing a mechanism to calculate the appropriate rate utilities should pay customers based on not only their generation mix, but environmental factors and the system’s ability to offset more expensive forms of power generation.

The new tariff may improve access to community solar for low-and-moderate income subscribers, as well as decrease financing costs, according to reports.

414MW of solar development is in the project pipeline, according to Xcel’s most recent monthly report. By the end of the year the utility believes 200MW will be operational, with another 200 to 250MW to be added within 18 months.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

September 4, 2025
Gavin Newsom has signed an executive order to accelerate the permitting of energy generation projects that could be set to lose IRA support.
September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.
Premium
September 4, 2025
Analysis: A Biden-era policy to suspend the payment of duties on Southeast Asian module imports looks set to backfire badly on an already under-pressure US solar industry.
Premium
September 4, 2025
PV Talk: Highland Materials' CEO Richard Rast explains how the company aims to compete in the polysilicon landscape through US innovation.
September 4, 2025
US tracker manufacturer FTC Solar has launched an automated 80 degree hail stow angle for its flagship 1P Pioneer tracker.
September 3, 2025
US residential solar prices have remained at historic lows in the first half of the year despite market uncertainty and continued high interest rates.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines