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S.F. No. 936 - Solar Energy Incentives
 
Author: Senator David J. Tomassoni
 
Prepared By:
 
Date: March 11, 2013



 

Section 1 transfers certain funds in the Renewable Development Fund (RDF) to the “Made in Minnesota” solar production incentive account established by Section 4.  Under current law the RDF is funded by XCEL Energy ratepayers.  The money paid into the RDF by XCEL is calculated based on the number of dry casks storing spent nuclear fuel located at the two nuclear electric generating plants in the state.  The funds transferred from the RDF to Made in Minnesota account are the amounts remaining after mandated renewable energy production incentives (REPI) are paid out of an annual $10,900,00 allocation from the RDF that expires January 1, 2021. 

Section 2 provides definitions for the “Made in Minnesota” solar production incentive program created by sections 3 to 6.  The definitions of “Made in Minnesota” and “solar photovoltaic module” are the basis for the program.  Incentives are to be paid for solar photovoltaic modules made in Minnesota.  The “made in Minnesota” definition is very detailed.  The definition of “solar photovoltaic module “ is by reference to an existing law funded by the RDF.

Section 3 creates the “Made in Minnesota” solar energy production incentive account in the state treasury.  Each public utility, rural [sic] electric association, and municipal utility must contribute annually to the account from 2014 through 2024, five percent of conservation investment program spending it spent in the previous calendar year.  XCEL is required to transfer from the RDF an amount sufficient so that when added to the five percent payment $20,000,000 is transferred to the Made in Minnesota account from 2014 through 2024.

Section 4 establishes detailed technical specifications and a process for solar photovoltaic modules to be certified as “Made in Minnesota.  The process includes inspection of the manufacturing facilities.

Section 5 provides the calculation of the amount of the solar energy production incentive payable under section 6.  The incentive must be sufficient to, when combined with certain payments by a utility, reduce the payback of the owner’s investment in the solar photovoltaic module to a period of ten years.  A detailed financial model and other specifications are provided that the commissioner of commerce must use in calculating the incentive amount.

 Section 6 provides for the payment of incentives to owners of solar photovoltaic modules with a total nameplate capacity below 100 KV.  Program payments can be made from January 1, 2014, to December 31, 2034.  An owner may receive incentives for no more than ten years.  Payments are made for energy generated using the amount calculated under Section 5.  A separate formula is used for payments for modules with nameplate capacity of between 40 and 100 KV.  Fifty percent of the incentive payments shall go to residential installations and 50 percent for commercial.  No more than 25 percent of XCEL’s contribution to the account may be paid to owners of modules located outside its service territory.

Section 7 requires the commissioner of commerce to issue a request for proposal for a study of on-site energy storage.  The study will be funded by an assessment under section 216B.241, subdivision 1e.

Section 8 requires the commissioner of commerce to issue a request for proposal for a study of the value of solar thermal.  The study is funded by an assessment under section 216B.241, subdivision 1e.

JCF/syl

 
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