Community solar in Minnesota
With community solar, you can subscribe to a share of a solar farm near you. If you have an electric bill, you can support renewables without installing anything on your property – and save money!
Minnesota has long been the national leader for community solar, having more projects and capacity than any other state in the country. And that’s no surprise, especially considering MN’s largest utility company, Xcel Energy, is home to the nation’s largest community solar program (Solar* Rewards). The North Star state first passed community solar legislation in 2013 – it hasn’t stopped growing since!What is community solar?
A community solar project is a solar farm whose electricity is shared by more than one property. The primary purpose of a community solar farm is to allow members of a community to share the benefits of solar power even if they cannot or prefer not to install solar panels on their property. Project participants benefit from the electricity generated by the community solar farm, which costs less than the price they would ordinarily pay to their utility.
How much can I save by joining a Minnesota community solar farm?
Savings differ from program to program, and also vary by month. On average, most community solar subscribers in Minnesota receive a 5-10% discount off of traditional electricity costs over the course of a year.
How to sign up for community solar
Signing up for community solar is extremely simple – especially when you do so through the EnergySage Community Solar Marketplace! Here’s a list of the steps you’ll need to take through our Marketplace in order to sign up:
- Enter your zip code to see a list of open community solar projects near you.
- Click on “Project Details” to learn more about individual projects, such as cancellation policies, billing info, environmental impact, location, and more.
- When you’re ready to select a project, click “Get Started.” This will take you to a page where you can fill out the necessary subscription information, including your name, address, and utility account number.
- Next, you’ll finalize your subscription with your developer, and they will follow up directly to confirm your contract and subscription amount.
- Finally, about a month or two after the project has launched (the launch date will be visible on the Project Details page), you’ll receive a separate bill for your community energy credits!
Community solar projects in Minnesota
What are the benefits of community solar?
Community solar could be a great option for you. It has many different benefits including traditional benefits of going solar like environmental friendliness and cost savings.
Invest in local energy
Community solar programs help support local renewable energy jobs and project development in Minnesota, connecting you directly to clean energy projects in your community.
Save money on your electric bill
You can save 5-10% off of your annual electricity costs with community solar.
Access community solar without needing to own property
Unlike rooftop solar, you don’t need to own your property to take advantage of community solar (you just need an electric bill!)
Sign up for community solar easily
Many community solar farms have no subscription fee and are easy to opt-out of. Plus, you don’t need to install or maintain any equipment on your property.
What is virtual net metering?
Virtual net metering (VNM) is a bill crediting system for community solar. It refers to when solar is not used on-site but is instead externally installed and shared among subscribers. In this case, you receive credits on your electric bill for excess energy produced by your share of a solar garden.
Virtual net metering in Minnesota
Xcel energy customers in Minnesota are able to take advantage of virtual net metering policies from the largest program in the nation in the form of a production credit on their monthly bill.
Community Solar FAQs
Electricity bill savings differ from program to program, and also vary by month. On average, most community solar farm subscribers receive a discount between 5-10% off of traditional electricity costs over the course of a year.
After subscribing to a community solar program, you will start receiving two separate bills: you’ll continue receiving a monthly bill from your utility company, but this bill will include any applicable credits from the community solar farm. You will also receive a separate bill from your community solar provider for the cost of your share or subscription.
Sign up or membership fees vary depending on the project, provider, and payment model – many community solar providers offer $0-down subscription options, while others may charge a small, initial sign-up fee to get you up and running.
It depends – if you’re moving to a location that’s still in the same electricity service territory as your current home, you may be able to transfer your community solar subscription to your new address. However, if you’re moving further away, you may need to cancel your subscription or transfer your contract to another utility customer (whether that be the new homeowners or someone else in the project’s service territory). Cancellation and transfer terms and applicable fees vary by project and provider, so confirm these policies with your provider prior to signing up.
Before signing a contract with a community solar provider, it’s important to compare estimated savings, cancellation terms, project location, payment model, subscription fees, and more. Using the Community Solar Marketplace, you can compare multiple local options and find the best project for you.
Renters: If you’re a renter, subscribing to a community solar project is your best option for going solar. As a renter, with community solar, you can save money on electric bills, have flexible contract options, and support the local development of clean energy.
Homeowners: Community solar is also a great option for homeowners. If you own your home but your roof isn’t suitable for solar panels, or you aren’t ready for the upfront cost of rooftop solar, community solar can help you save money on your electric bill.
Business owners: If you own a business and are looking for a way to save on utility costs, community solar could be ideal for you. With community solar, you can expect to pay 5-15% less for electricity than the market rate in your area.
Who offers community solar in Minnesota?
There are 5 community solar developers offering 7 active projects in Minnesota.
Community solar vs. rooftop solar in Minnesota
Which option is right for you?
Here are some of the main differences
to keep in mind as you’re deciding between community and rooftop
solar:
| Community solar | Rooftop solar | |
|---|---|---|
| Cost | No upfront cost | Does have an upfront cost; $0-down financing available |
| Savings | Lower savings | Maximum long-term savings |
| Accessibility | Available to renters & property owners | Only available to property owners |
| Maintenance | No maintenance required | Maintenance may be required and is the responsibility of the system owner |
| Incentives | Not eligible for most solar incentives | Eligible for state and federal solar incentives (e.g. the federal tax credit) |
| Property value benefits | Has no impact on property value | Increases property value |
Common myths about community solar debunked
There are plenty of misconceptions out there about community solar, but luckily we’re here to help clarify. Here are some of the truths about community solar:
You don’t need to own a home to go solar
Since you don’t need to have a suitable rooftop for solar to participate in a community solar project, it’s a great option for renters and people who live in shared housing. By purchasing a share of or subscribing to a community solar project, everybody can benefit from solar while paying less for electricity.
Community solar isn’t expensive
Back in the day, community solar often cost more than what you’d otherwise pay your utility – so it’s understandable if you still think that’s the case. However, it’s the opposite! By signing up for community solar, you’ll actually save money on an annual basis.
Community solar and green power aren’t the same thing
Ever received a letter in the mail urging you to sign up for a clean electricity plan? Or had someone knock on your door asking you to sign up for a green power plan? Community solar is not the same thing! Here’s a breakdown of how community solar compares to other electricity options:
| Community solar | Community choice aggregation | Green power | Standard utility offering | |
|---|---|---|---|---|
| Generates savings | Typically yes | Sometimes | Typically no | No |
| Supports local renewable energy development | Yes | Sometimes | Typically no | No |
| Has consolidating billing | Typically no | Typically yes | Sometimes | Yes |
| Do you get renewable energy certificates (RECs) | Typically no | Typically yes | Yes | No |
To learn more about these electricity plans, check out this article.
Many solar farms are environmentally friendly
Community solar can take up a lot of space, so it’s easy to be confused about how it’s environmentally friendly – don’t these projects clear trees? While some solar farms will require the cutting of trees, many don’t! In fact, a lot of community solar projects are built on otherwise unusable land like landfills or brownfield sites. Some states even provide financial incentives to developers who choose to build projects on these sites. And overall, even if some trees need to be cleared for a community solar project to be developed, the net environmental benefit is still worth it in most cases.
You don’t need to sign a long-term contract
Many people think that signing up for community solar means a long-term commitment – and we understand why! In the past, community solar subscriptions were often structured similarly to power purchase agreements in which you’re locked in for 20 or even 25 years. However, today, community solar subscriptions are much more flexible. Most companies don’t require a long-term agreement and you can cancel your subscription for free.
