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

August 18, 2026
Tax credit transfer value in the US rose between the second half of 2025 and the first half of 2026, according to Crux.
August 18, 2026
Residential solar and energy storage provider Sunrun has signed an agreement with distributed energy resource platform Voltus to support its Bring Your Own Capacity (BYOC) programmes for AI hyperscalers.
August 17, 2026
The ACC voted last week to cut the export rate—the price at which residential solar consumers can sell electricity back to the grid—by 10%.
Premium
August 14, 2026
PV Talk: 'There’s a lot of good news here,' Hasan Nazar, head of policy at Crux, tells PV Tech Premium of the US solar policy landscape.
August 14, 2026
IPP Recurrent Energy has secured US$695 million in financing to support a 330MW solar PV project in California.

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