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.

Read Next

September 25, 2026
Welcome to the PV Tech Best of the Week roundup, covering the week's biggest stories from the global solar industry.
Premium
September 25, 2026
Bright Saver co-founder Cora Stryker examines how fragmented state policies are shaping the US plug-in market’s growth.
September 25, 2026
The US Department of Energy’s (DOE) Office of Electricity (OE) will funnel US$5.25 billion into 31 “grid-improvement” projects across the US, which it claims will allow for 23GW of additional electricity capacity.
Premium
September 24, 2026
Henner Jahnke of Jurchen Technology examines whether high-density east-west systems can outperform trackers under today’s solar economics.
Premium
September 24, 2026
US Policy Focus: PV Tech looks at the Indian AD/CVD determinations, the ban on certain power equipment and other recent developments.
September 23, 2026
The US has published new limits on polysilicon imports to the US ahead of new tariffs coming into force on 4 December.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye