Community solar in Minnesota allows homeowners to subscribe to a local solar garden and receive credits on their utility bills without installing panels on their property. This program expands access to clean energy while lowering electricity costs for residents, including renters! At Community Solar Representatives, we provide expert guidance to ensure homeowners understand the benefits of enrollment and how community solar contributes to a more sustainable energy grid.
Minnesota
Solar Garden Located in Red Wing, Minnesota
About Minnesota Community Solar
In Minnesota, community solar subscribers typically save between 5% and 15% on their monthly electricity bills.
The exact savings can vary based on the specific program, location, and individual energy usage. Notably, income-eligible households are guaranteed savings.
Xcel Energy's Solar*Rewards® Community
Xcel Energy’s Solar*Rewards Community program is Minnesota’s framework for community solar, designed to expand access to renewable energy while ensuring consumer protections and transparency. Established under the state’s Community Solar Garden Program, it allows third-party solar developers to build and manage solar gardens, giving residents, businesses, and organizations the opportunity to subscribe and receive bill credits for the energy produced. This initiative was created to support Minnesota’s renewable energy goals, provide equitable access to solar savings, and give consumers a way to benefit from clean energy without installing panels on their property. By regulating credit rates, contract terms, and subscription practices, Solar*Rewards Community ensures fairness and reliability in the community solar market while encouraging continued growth in sustainable energy development.
Minnesota State Legislation
Minnesota’s Community Solar Garden Statute (Minn. Stat. § 216B.1641) was enacted in 2013, making the state a national leader in community solar. This law requires Xcel Energy to facilitate a Community Solar Garden Program, allowing third-party developers to build and operate solar gardens while offering subscriptions to residents, businesses, and organizations.
Key provisions of the statute include:
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Bill Credits: Subscribers receive financial credits on their Xcel Energy utility bills based on the solar energy generated by their share of the garden.
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Location Requirements: Community solar gardens must be located in Xcel Energy’s service territory, and subscribers must be in the same or an adjacent county.
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Ownership Limits: No single subscriber can own more than 40% of a garden’s capacity, ensuring broader community participation.
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Consumer Protections: The statute mandates transparency in contracts, fair crediting, and oversight to prevent deceptive marketing practices.
This statute was designed to expand solar access to households that cannot install rooftop solar, including renters and homeowners with shaded roofs, while supporting Minnesota’s renewable energy goals.
How It Works
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Your monthly electric bill: $200
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You receive a $150 solar credit from your share of the solar garden.
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That credit is applied to your utility bill, lowering what you owe.
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You then pay the solar provider for that $150 credit at a 10% discount — so you only pay $135.
✅ Result: You save $15 that month, and your total energy cost drops from $200 to $185 — while supporting local clean energy.