MN PUC gives Residential Adder For Community Solar Subscribers

Back in July 2016, the MN Pubic Utilities Commission reduced the rates which Community Solar Garden subscribers would be compensated but not by as much as Xcel was requesting. The PUC's decision was to switch the methodology for determining compensation for CSG subscribers to the Value of Solar (VOS). 

This change made it more difficult for future Community Solar Project to become accessible and equitable in Community Power’s terms without a residential adder to the credits. 

Finally after 2 years, the MN Public Utilities Commission finally issued a decision about a residential adder on October 11^th, 2018

They gave a 1.5 cents per kilowatt-hour boost to subscribers of Community Solar projects started in 2019 or 2020.

 While this adder was certainly better than nothing, it was not significant enough to make residential community solar projects easily pencil. Reason is because the "Value of Solar" changes each year and Xcel’s proposed 2019 revision to the value of solar would reduce compensation to residential Community Solar Gardens by almost that same amount 1.5 cent amount. 

The value of solar is a complex calculation which Xcel Energy made based on  methodology which the PUC itself approved. This makes a good case for the Value of Solar methodology to come under review   so that the utility will not be allowed to pay too little for valuable solar energy.