Dive Brief:

• Minnesota regulators gave initial approval to rules for community-owned “solar gardens” in the state.
• Developers expect up to 100 MW of solar gardens, which allow customers to pay for solar from off-site facilities.
• Xcel Energy will pay its retail rate for power from the solar gardens, which could be up to 15 cents/kWh if renewable energy credits are included in the sale.

Dive Insight:

The new solar garden rules are part of a law passed last year that requires Minnesota utilities to get 1.5% of their energy from solar, on top of their renewable portfolio standard requirements. As we've seen with New Jersey, solar doesn't have to be confined to the Southwest. The new rules in Minnesota, and the 1.5% requirement, give another boost to the solar industry, which ultimately should help lower solar prices.