Minnesota
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 09/23/2009
| Incentive Type: |
Net Metering |
| State: |
Minnesota |
| Eligible Renewable/Other Technologies: |
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Municipal Solid Waste,
CHP/Cogeneration,
Anaerobic Digestion,
Small Hydroelectric,
Other Distributed Generation Technologies
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| Applicable Sectors: |
Commercial,
Industrial,
Residential
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| Applicable Utilities: | All utilities |
| System Capacity Limit: | 40 kW
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| Aggregate Capacity Limit: | No limit specified
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| Net Excess Generation: | Reconciled monthly; customer may elect to take compensation as a payment or as a bill credit at the retail utility energy rate
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| REC Ownership: | Not addressed |
| Meter Aggregation: | Not addressed |
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Authority 1:
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Minn. Stat. § 216B.164
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| Date Enacted: | 1983 |
| Date Effective: | 1983 |
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Authority 2:
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Minn. R. 7835.3300
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| Date Effective: | 2000 |
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Authority 3:
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Minn. R. 7835.9910
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| Date Effective: | 2000 |
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Summary:
Minnesota's net-metering law, enacted in 1983, applies to all investor-owned utilities, municipal utilities and electric cooperatives. All "qualifying facilities" up to 40 kilowatts (kW) in capacity are eligible.* There is no limit on statewide capacity.
Each utility must compensate customers for customer net excess generation (NEG) at the "average retail utility energy rate," defined as "the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales." This rate is basically the same as a utility's retail rate. Compensation may take the form of an actual payment (i.e., check for purchase) for NEG or as a credit on the customer's bill. The option to have NEG purchased by the utility at the retail rate distinguishes Minnesota's net-metering law from net-metering laws and programs in most other states, where monthly reconciliation is generally limited to a bill credit.
Wisconsin is the only other state that provides for the actual purchase -- in the form of a check payable to the customer -- of NEG at the utility's retail rate for electricity generated by a renewable-energy system. However, in Wisconsin a check will only be issued to the customer if NEG exceeds $25. Compensation takes place under the state's Uniform Statewide Contract (Minn. R. 7835.9910).
* The term "qualifying facility" is defined in the federal Public Utility Regulatory Policy Act of 1978 (PURPA). It generally includes most renewable-energy systems and combined-heat-and-power (CHP) systems.
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Contact:
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Energy Information Center
Minnesota Department of Commerce
Office of Energy Security
85 7th Place East, Suite 500
St. Paul, MN 55101-2198
Phone: (651) 296-5175
Phone 2: (800) 657-3710
Fax: (651) 297-7891
E-Mail: energy.info@state.mn.us
Web Site: http://www.energy.mn.gov/
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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