2015 Solar Module Incentive Amounts

The Minnesota Department of Commerce announced on August 12, 2014, the incentive amounts for the second year (2015) of its10-year, $15-million-a-year Made in Minnesota Solar Incentive Program.  

The solar incentive program will be available to customers of investor-owned utilities (Xcel Energy, Alliant Energy, Minnesota Power, and Otter Tail Power) who install solar electric systems (PV) using solar modules certified as manufactured in Minnesota. PV Modules from two Minnesota companies—tenKsolar and Silicon Energy—have been certified for the program to date. Solar PV systems must be less than 40 kilowatts (kW) to qualify for incentives. Applications will be accepted annually between January 1- February 28 each year through 2023 and will be selected by lottery.

Solar Energy Production Incentives

The six criteria listed in the Made in Minnesota Solar Energy Production Incentive legislation (Minnesota Statute § 216C.414, subd. 2 (2013)) were used to determine the incentive amounts. Incentives for PV systems will be performance-based—established by a system’s energy production—and will be paid over 10 years rather than the capacity-based incentives of past programs.

Commercial For Profit below 40 kW DC Solar Incentives Amount

• Silicon Energy Voyageur Modules SiE-V-275 = $.35/kWh
• tenKsolar Module XT-A 410=  $.13/kWh

Commercial Nonprofit/Government below 40 kW DC Solar Incentive Amount

• Silicon Energy Voyageur Modules SiE-V-275 = $.35/kWh
• tenKsolar Module XT-A 410= $.15/kWh

Residential up to 10 kW DC Solar Incentive Amount

• Silicon Energy Voyageur Modules SiE-V-275 = $.37/kWh
• tenKsolar Module XT-A 410= $.25/kWh

The Made in Minnesota Solar Incentive Program is administered by the Minnesota Department of Commerce with an annual budget of up to $15 million for 10 years, of which up to $250,000 per year can be reserved for solar thermal rebates. About 50 percent of the incentives will go to residential systems and about 50 percent to commercial. The $15 million a year program is funded through two sources: 5 percent of each public electric utility’s total annual Conservation Improvement Program budget and the Xcel Energy Renewable Development Fund (RDF).

More information on Made in Minnesota program. Questions can be directed to the Department of Commerce Energy Information Line: 651-539-1886 or toll free at 1-800-657-3710.

STATUS OF MINNESOTA REBATE PROGRAMS

7/11/2013

We've come to a new phase in Minnesota's solar rebate approach. A couple months ago the Minnesota legislature passed a bill* that changes how solar incentives for PV (photovoltaic) installations are paid and calculated starting in 2014. It's not really an energy bill but I'll refer to it as such throughout this discussion.

For Xcel Energy customers, rebates previously were paid to the system owner immediately ("Solar Rewards") with an option for a bonus rebate paid over five years if the panels were manufactured in Minnesota ("Minnesota Bonus"). The amount of these rebates was based on the system size (number of panel watts installed).

Although there aren't many details yet on how the new incentive amounts will be calculated, the payments will now be spread out over ten years. The amount will be based on how much energy the system produces each month - referred to as a "production-based incentive” or PBI. This means the amount of the incentive earned by a system may vary year to year depending on weather, snow cover, etc.

The bill states that applications for the "Minnesota Bonus" incentive (for panels manufactured in the state) will be accepted only between January 1 and February 28 and projects will be randomly selected if there are more applications than incentive funds available. It does not specify that same schedule for the "Solar Rewards" incentive but it may be run similarly. There is likely to be no queue of waiting projects from 2013, but that is still under discussion.  The legislation states that a random process must be followed;  all projects will need to re-apply during the January/February timeframe. This means it will not matter if yours is the first project to apply or the last as long as the application is completed during the application period. This also means that even if your project happens to be the very first into the incentive program, it may not win funding that year and would have to go back into the lottery pool for another shot at funding the following year.

The dilemma for us at Aladdin Solar (and all Minnesota's solar contractors) is that there is only a general approach and spending targets outlined in the energy bill. There is no instruction as to how the incentives will be calculated, requirements for qualification, or payment schedules. These are details that will be worked out between the utility companies, the Department of Energy Resources (Minnesota DER), and other "stakeholders. All parties are working on getting details out this Fall 2013.

Unfortunately, about all we can tell you is that there will be a new incentive program available next year. No one can tell you what that incentive will amount to or how it will be paid. We believe the best approach is to commit to your project with a contract and hang in there through this period of uncertainty. We’ will be actively following Minnesota’s incentive program as it unfolds and will have your project documents ready for whatever they throw at us! If for some reason the final incentive program is not satisfactory to you, you can cancel the installation contract without penalty.
 

Charlie and Donna Pickard
Aladdin Solar

P.S. Positive news for solar thermal installations - the energy bill also brings back incentive programs for solar thermal (solar hot water, solar air heat, and solar pool heat) systems. Incentives for thermal have been missing for several years and will give a boost to this efficient technology!

*H.F. No. 729, Conference Committee Report -- Articles 9 through 12

 

Make Mine Solar

Make Mine Solar

Solar Thermal Bulk Purchase Program (Minnesota)

 

For a limited time, save extra on solar hot water and solar air heating systems!

The best bet right now for Minnesota home and business owners interested in solar hot water systems is to get involved in the Make Mine Solar program provided by the MRES (Midwest Renewable Energy Society). This bulk purchase program was just started in July with the intent to gather a number of solar thermal projects into a bundle to get a better price from the manufacturers. Aladdin Solar is one of four qualified installers involved in the program.

 

Here's how it works:
1. Go to the web site ( Make Mine Solar) to learn about the program, pricing, etc.

2. Several workshops are scheduled in various areas. If possible, attend one of these to meet the people involved, to learn about solar, and to have your questions answered.

3. Sign up for a "virtual" site assessment. A technician will then check out your site online using Google Earth or other satellite/aerial tools to verify you have a good site and that your project will result in a productive system.

4. If the assessor feels you have a good site, you would then arrange for one of their independent professional site assessors to do an in-person evaluation. This would include some discussions with you, shading analysis, limited structural evaluation, inspection of your existing water heating system and utility room, plan for the piping run, etc. You will receive a formal report containing all the evaluation information including production and savings estimates.

5. If, after you review the report, the project looks like it will meet your goals and expectations, you would select your installer from the list (we suggest Aladdin Solar, of course!) and sign an installation contract. The assessor's site report will provide the installer with most of the information required for the project.

6. When the number of systems reaches the Group Purchase goal or the deadline date (September 30, 2012), the equipment orders are placed in bulk and you and your installer will schedule the installation date.