July 24, 2024
Understanding Minnesota's Solar*Rewards Community program, its impact on Community Solar, and how Community Solar billing works for Xcel Energy (Minnesota) subscribers.
Minnesota’s Solar*Rewards Community program is an initiative designed to foster the growth of Community Solar projects within the state. Administered by Xcel Energy, this program provides financial incentives to encourage the development of solar gardens, enabling more residents to participate in and benefit from renewable energy.
This article will expand upon the Solar Rewards Community program and how it’s Community Solar initiative plays a critical role in Minnesota’s renewable goals.
The Solar*Rewards Community program offers incentives for Community Solar projects, also known as solar gardens, which allow multiple participants to share the benefits of a single solar installation. The program supports the development and operation of these projects by providing financial incentives based on the amount of electricity generated and credited to subscribers.
The program supports Community Solar in several key ways:
Community Solar is a renewable energy program that allows multiple residents to purchase the solar energy directly from a developers’ local solar garden at a discounted rate.
Step 1
A developer builds a solar garden and delivers solar energy directly to the local utility. Residents connected to that utility can “subscribe” to the solar garden, reserving a portion of that solar energy for their electricity needs.
Step 2
The utility sends electricity to the residents as usual. Community Solar subscribers will now receive “credits” on their monthly electric bills, reducing what they pay their utility provider for electricity.
Step 3
After paying the remaining balance to the utility, subscribers then pay for their solar credits at a guaranteed discount from their community solar provider, resulting in cost-savings.
Subscription: Residents subscribe to a Community Solar project, committing to purchase a “share” of the electricity produced by the solar array. Subscribers’ “share” is allocated to cover most of their annual electricity usage.
Energy Production: The community solar project generates electricity, which is fed into the local utility grid. The total amount of electricity produced is measured and recorded.
Allocation of Credits: Subscribers earn energy credits based on their share of the project’s output. These credits are then applied to their utility bills, lowering what they pay to their utility.
Application of Credits:
Let’s take a look at an example Xcel Energy electric bill. In the photos below, subscribers can see their solar credits in 2 places.
On Page 1 under the Summary Of Current Charges, solar credits are labelled as “Other Recurring Charges”, reflecting a negative dollar amount.
This monetary deduction reflects the credits (“CR”) received from your Community Solar project within that billing period, reducing overall charges from Xcel Energy for electricity.
On Page 2, under the Other Charges/Adjustments section, the same negative dollar amount appears as “Transfer Credit/Charges”.
Again, this deduction reflects the community solar credits received by subscribers, lowering what they pay for electricity.
Approximately 2 weeks after receiving your electric bill (with credits applied to your bill), you will receive a separate bill from your community solar provider for the same credits you received.
These credits are then purchased at a guaranteed discount.
Your community solar discount may vary by provider though Solar Gardens offers a guaranteed 10% discount to all new subscribers.
If you’d like to better understand how Community Solar billing works and what the billing timeline looks like for subscribers, check out our support videos below:
Minnesota’s Solar Rewards Community Program plays a crucial role in promoting solar energy, particularly through Community Solar projects, by offering financial incentives and long-term revenue stability. Community Solar provides significant benefits, including cost savings, environmental impact, and accessibility to renewable energy. Minnesota residents can enjoy these advantages through the Solar Rewards Community Program, supporting local solar projects and contributing to a sustainable future.
For more information on how to join a Community Solar project in Maine and start saving on your electricity bills, visit JoinSolarGardens.com
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