Restrictions may apply, such as the expected production from the solar facility may not exceed 120% of the annual on-site energy consumption combined with the size of any subscription the customer might have to a Community Solar Garden. Payment by check or a monetary bill credit. Make your voice heard where you live to stand up for solar! 202 CONSUMER GUIDE TO SOLAR POWER ... you sell to Minnesota Power to get your net usage. In MN, net metering is available for residential, commercial, nonprofit, and agricultural solar systems! The Net Metering Service Option provides interested customers with the option to generate electricity from small-scale renewable sources, up to 100 kilowatts (kW), to offset their own use, while maintaining a secure connection to the grid for times when they need to purchase electricity. 3(a)), Public utilities are not allowed to charge fixed recovery fees to distributed generation customers (other than the fixed fees it assesses to its retail customers). Through a non-incentivized “own your own” solar option such as net metering, you retain the renewable energy you produce. Minnesota Solar Power Incentives, Tax Breaks and Rebates. Minnesota Statute 216B.164 establishes the rules of net metering in Minnesota. For public utilities, eligible systems are sized 1 MW in capacity or less, and for municipal utilities, eligible systems are sized to 40 kW or less. The specific costs and retail rates of their utility (updated annually); and. In net metering, the owner is billed for the “net” energy that is used, which is the difference between total energy produced by the system and total energy consumed. ). Net metering is a widely-used billing method that allows solar homeowners to recover their energy usage costs through their systems’ solar energy production. Residential solar power is a solid investment in the state thanks to the combination of a strong Renewable Portfolio Standard, various rebates, great tax exemptions and a favorable net metering policy. It is an energy compounding system that calculates the resulting electrical energy, the customer uses from the electrical grid and the energy he/she supplies to the grid from his / her solar power system. In 2000 this was amended to compensation "at the average retail utility energy rate". When it comes to incentives for solar power, Minnesota is way ahead of the pack. ), If a customer who wants to install a DG system also has a community solar garden (CSG) subscription, the CSG subscription is included in the limit of no more than 120% of the average annual consumption. Utilities base the capacity on net annual avoided capacity cost per kWh averaged over the on-peak hours, and only applies to deliveries during on-peak hours for DG systems with firm power. Homeowners receive a credit that is equal to the full retail rate of electricity in exchange for the energy their solar panels produce. ), For customers who want to install a DG system larger than 40 kW or want to receive compensation or an incentive from their utility for the electricity they produce, the eligible size of the DG system may be limited to 120% of the energy consumed on that property or meter. At the end of the year, customers of public utilities will be compensated at the avoided-cost rate and customers of municipal utilities and electric coops will have their credits expire. The customer will continue to purchase electricity from the utility at their normal retail rate. Before signing a contract or buying equipment, get your study results. Retail net metering also is unlawful under the Federal Power Act and the Public Utility Regulatory Policies Act (PURPA), according to CEI. Net Metering Program Application Package Introduction Thank you for your interest in NB Power’s Net Metering program. 216B.164, Subd.4c. The argument against net metering. Net metering in Minnesota With so many solar incentives floating around, it may be easy to forget about one of the best ones out there that will apply to any Minnesota homeowner: net metering. Year “XX” – Number “09”.) Bluewater Power will subtract the value of electricity you supply to the grid from the value of what you take from the grid. Prior to net energy metering (NEM) policies, utility customers who installed a solar or other renewable energy system had two options for dealing with excess generation. Interconnection costs can be expensive. However, a customer who is eligible for the Average Retail Utility Energy Rate may still choose the lower Simultaneous Purchase and Sale Billing Rate based on a Time-of-Day rate where, for example, it consumes more electricity than it produces and has an electric vehicle that can be recharged at night under a low retail Time-of-Day rate. (Minn. Stat. ... Minnesota Power SolarSense. Compensation is based on all electricity sent to the utility after customer self-use in the instant. A customer choosing the banking option may also choose a Time-of-Day based rate. Going solar doesn’t need to feel complicated. Net metering allows you to store any excess energy that your panels produce in the electric grid. Alternatively, any customer can request to be compensated in the form of a per-kilowatt-hour credit, which carries over month to month. 216B.164; Subd. (For this rule on public utilities, see Minn. Rules 7835.4014. Contact Minnesota Power for information regarding systems larger than 40 kW, as there may be other considerations. This package is meant to help you better understand our program and to provide you with some The capacity factor is based on the DER’s maximum on-peak metered capacity delivered to the utility during the billing period. (Minn. Stat. Some utilities also require the meters to be either all Time-of-Day rates or not Time-of-Day rates. Join a community of solar supporters working to help more people go solar and fight for our energy rights. A customer needs a production meter to measure the RECs or SRECs produced by the DER system. The Public Utilities Commission's Consumer Affairs Office (CAO) helps resolve disputes between customers and utility companies. Send a free postcard to your elected officials and tell them…. There is no cap on total net-metered generation, however a public utility may request that the PUC limit net-metering once net-metered generation has reached four percent of the utility’s annual electricity sales. In 1979 an apartment complex and a solar test house in Massachusetts were the first two projects to use net metering. Minnesota solar energy incentives and federal tax credits make solar power for your home or business affordable and a wise investment that pays for itself. Cooperative and municipal utilities may charge a fee to distributed generation customers to recover the fixed costs not already paid for by the customer through the customer’s existing retail billing arrangement. Sunshine for your inbox: Subscribe to SUN emails! 216B.164 Subd. Minnesota utilities offer different compensation rates for customers with QF distributed generation: Average Retail Utility Energy Rate Customers with QF systems less than 40 kW AC can elect to receive the Average Retail Utility Energy Rate for net energy sold to the utility at the end of the billing period, typically at a date set every month. Subd. 3), Minnesota Public Utilities Commission Net Metering Non-incentivized solar through net metering is one of our “own your own” solar options. Municipal utilities and electric cooperatives are explicitly allowed to charge an additional fee to recover fixed costs. Minnesota’s net metering law applies to all utilities, and requires them to provide net metering for all solar power systems less than 40 kW. Minnesota utilities offer different compensation rates for customers with QF distributed generation: Customers with QF systems less than 40 kW AC can elect to receive the Average Retail Utility Energy Rate for net energy sold to the utility at the end of the billing period, typically at a date set every month. Net Metering – Minnesota Minnesota is one of only two states (Wisconsin is the other) to pay the retail rate for net excess generation of electricity. Robinson said another concern is that some generate far more energy than they need as … The amount a customer is paid for the electricity they do not use is found in their utility’s tariff (often called the compensation rate). Minnesota Power … The capacity rate is the utility’s net annual avoided capacity cost per kWh averaged over all hours as shown in Schedule B of the utility’s most recent annual filing. Source: National Renewable Energy Laboratory, Source: National Renewable Energy Laboratory. Interconnection costs: Costs can range anywhere from $500 to $100,000 - even into the millions. Saint Paul, MN 55101-2147, Enbridge Line 3 Pipeline Replacement Project, Certificate of Need Application Documents. Additionally, some customers may be eligible to bank kWh credits on their bill to offset future electricity consumption. For all systems 40 kW in capacity or below, compensation is at the average annual retail electricity rate. Utility customers with net metered systems will be credited for each kilowatt produced by their system and each month will be billed for the number of kilowatt hours they used, minus the number of kilowatt hours generated. Residential solar power is a solid investment in the state thanks to the combination of a strong Renewable Portfolio Standard, various rebates, great tax exemptions and a favorable net metering … Minnesota is one of 43 U.S. states that requires utilities to pay retail rates for surplus solar power that their customers put on the grid. Going green, lowering your utility payment, and increasing the value of your home are among the top benefits of getting solar on your home. Municipal utilities and electric coops may charge net metered customers additional fees to recover any associated fixed costs. (Minn. Stat. (Minn. Stat. 3a. A utility may choose to install a bidirectional meter or install two meters and net the kWh on the bill; however, both methods allow the customer to offset on a monthly billing cycle basis their electricity consumption with the electricity they self-generate. For 30 years, local power companies have had to buy excess electricity from Minnesota homeowners who have solar panels on their roofs and farmers with small wind turbines. The Value of Solar (VOS) rate (or Value of Solar tariff) is an alternative to net metering designed to capture the value solar installations provide to the electric system. (Public Utilities: Minn. Rules 7835.4013 ). Our first Publicly Owned Property Solar installation at the University of Minnesota-Crookston Wellness Center. IOUs are prohibited from imposing standby charges on net-metered systems of less than 100 kW. When it comes to incentives for solar power, Minnesota is way ahead of the pack. Net metering allows you to earn credits on your electric bill on days when your system produces more energy than you use. States with no mandates, but some utilities offer net metering. Ontario’s net metering program lets you send electricity you generate from renewable sources into the electrical grid for a credit towards your energy costs. Because utility billing systems have many different billing cycles, your specific monthly billing cycle may not align with the calendar month. The VOS rate attempts to include the vari… The following diagrams may be helpful in illustrating the differences between net metering and net billing. What you will see on your bill is the net difference. We help you go solar, join together, and fight for your energy rights. ), Time of Day rates recognize the value of electricity varies throughout the day depending on supply and demand; however, most customers have not enrolled in time-of-day rates and instead pay a fixed kWh rate regardless of the time-of-day. This is sometimes referred to as net billing; or. However, customers may still see a new charge on their bill when they install distributed generation to recover the additional costs required to serve their distributed generation facility. 14 NET ENERGY METERING 15 UNDERSTANDING YOUR BILL 16 INCENTIVES 18 GLOSSARY 20 RESOURCES ... systems 40 kW and under. For QF systems sized from 1 MW up to 20 MW, compensation is a negotiable rate based on the utility’s avoided cost. Aggregate cap:No limit Credit:Average retail utility energy rate for <40 kW; avoided cost rate (customer may elect to a kilowatt-hour credit) for >40 kW; utilities are permitted to use a Value of Solar Tariff in lieu of net mete… For systems between 40 kW and 1 MW, compensation is at the public utility’s avoided cost rate. In addition, some companies and individuals purchase RECs to support renewable energy or greenhouse gas reduction goals. Generating Power as an Individual. Before you start: We MUST assess your project. Receive latest solar news and opportunities to take action and support solar energy. Utilities annually update their Average Retail Utility Energy Rate. RECs and SRECs are used by utilities for compliance with renewable energy or solar energy standards, like Minnesota’s Renewable Energy Standard and Solar Energy Standard . Net metering accounts the difference of excess power exported back to the grid and total power consumed by the owner. 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