Community solar to reduce energy costs
Project partners and supporters gathered for a groundbreaking ceremony in Owatonna, MN, to celebrate a new collaboration of Minnesota organizations constructing a Community Solar Garden (CSG) in Owatonna, as well as CSGs being constructed in Sartell (two CSGs) and in Kasota, MN, which will help lower energy bills for Minnesotans.
The projects are a collaboration of Minnesota-based organizations: Enterprise Energy, as solar developer and operator, construction partner Cedar Creek Energy, and finance partners Minnwest Bank, the Minnesota Climate Innovation Finance Authority (MnCIFA), and Sunrise Banks. Native Sun Community Power Development, the nonprofit founded by Red Lake Nation tribal citizen Bob Blake, will support workforce development opportunities with the projects.
Learn more about MnCIFA's loan for the Owatonna CSG.
The projects are part of the state’s newly renamed Melissa Hortman Community Solar Program. Since Speaker Emerita Melissa Hortman championed efforts to establish the program in state law in 2013, Minnesota has been a national leader in developing CSGs.
“This is what community solar was meant to be. We are local organizations coming together to support the communities we serve in Minnesota,” said Enterprise Energy CEO Eric Pasi.
“Minnwest is making an investment that directly benefits our communities and demonstrates the value of investing in homegrown, clean energy in Minnesota,” said Greg Hohlen, Minnwest Senior Vice President of Commercial Lending.
MnCIFA Executive Director Kari Groth Swan said, “The public-private partnership in financing these projects is an example of why MnCIFA was created as a state agency, to speed up clean energy projects that reduce energy costs for Minnesotans today and into the future.”
Logan O’Grady, Executive Director of the Minnesota Solar Energy Industry Association, said, “"These solar projects show the strength of Minnesota's solar industry in delivering local economic benefits, local jobs and long-term energy savings. Electricity generated from free sunshine means you are not paying for fuel costs that vary, like the price of diesel or natural gas."
Native Sun Executive Director Bob Blake said, “These four projects prove the value of the Melissa Hortman Community Solar Program in delivering good-paying jobs, workforce training opportunities, growth of Minnesota’s clean energy economy and clean energy that will benefit generations to come.”
Who can subscribe to the Community Solar Gardens?
- Any household within Xcel Energy service territory
- At least 55% of the solar subscriptions reserved for low- and moderate-income households
- Homeowners and renters who live in homes or apartment buildings
- Schools, faith communities and nonprofits can subscribe for solar at their locations.
What are the economic impacts of the CSGs?
- All companies involved with the project development, construction and financing are based in Minnesota, growing our state’s clean energy economy.
- Households with low-to-moderate incomes will benefit from 15% lower electric bills every month they subscribe to their Community Solar Garden, and higher-income households will get 8% lower electric bills.
- Total savings for CSG subscribers are estimated at $4.5 million over 25 years.
- Solar energy production will be consistent and stable over that time period (not influenced by international markets or conditions that impact other fuel sources).
- Job creation: Construction will create 57 good-paying jobs and offer workforce development opportunities.
Another benefit of the projects is the CSG sites will be planted with a pollinator-friendly seed mix developed by Minnesota state agencies. State seed mixes are designed to increase plant diversity, create competition for invasive species, promote plant community resiliency and support pollinators such as honeybees. More info: Minnesota Board of Water and Soil Resources Seed Mixes.
More info:
- About Enterprise Energy
- About the Minnesota Climate Innovation Finance Authority
- About Minnwest Bank
- About the Minnesota Solar Energy Industries Association
- About Native Sun Community Power Development