Community solar to reduce energy costs
MnCIFA loan for $5 million with 2-year term. To develop a Community Solar Garden (CSG) in Owatonna that will reduce electric utility costs 8% to 15% for households that subscribe. A total of four CSG projects are involved in this collaboration.
Total savings for the CSG subscribers are estimated at $4.25 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).
Four new Community Solar Gardens
MnCIFA's loan is financing a Community Solar Garden (CSG) in Owatonna, MN, as part of a collaboration to construct four CSGs, one in Owatonna, as well as two CSGs in Sartell and one in Kasota, MN. MnCIFA's financing for the Owatonna CSG was key to financing for the other three Community Solar Gardens.
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.
The CSGs qualify for federal Investment Tax Credits for solar energy. The tax credits will be applied to repay MnCIFA's loan. Materials to construct the CSGs include American manufactured steel and solar panels.
Economic impacts of the four CSGs
- Households with low to moderate incomes who subscribe will receive utility bill credits to lower their energy costs 15% each month they subscribe to their Community Solar Garden. Higher-income households will benefit from 8% lower energy costs when they subscribe.
- CSG subscribers can be homeowners or renters in single-family, condo, townhome or apartment housing.
- Schools, faith communities and nonprofits can also subscribe to get solar for their locations.
About the projects and partners
The collaboration involves four Community Solar Garden projects and multiple partners.
- Locations for four CSGs: Owatonna, Sartell (two sites) and Kasota, MN.
All partners are organizations based in Minnesota.
- Solar developer and operator: Enterprise Energy
- Construction: Cedar Creek Energy
- Workforce development opportunities: Native Sun Community Power Development
Financing partners, in addition to MnCIFA: