Minnesota legislation aims to sunset community solar program

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Minnesota has been ahead of the curve when it comes to clean energy. In 2023, Gov. Walz signed into law a new climate bill that aims for 100% clean energy by 2040. In 2013, Minnesota was one of the first states to establish a community solar law, having based its program on  Colorado’s.

Now that law is in jeopardy with Senate bill 2855 introduced (and a companion House bill), which will effectively sunset the state’s community solar garden program on July 31, 2028.

The Coalition for Community Solar Access, MnSEIA, Vote Solar, the Institute for Local Self-Reliance and Solar United Neighbors issued the following joint statement:

“We strongly oppose SF 2855 and the companion House bill, which recklessly proposes to sunset Minnesota’s newly reformed low-to-moderate income (LMI) accessible Community Solar Garden (CSG) program in 2028. This blatant rollback is a gift to powerful utilities intent on protecting their monopoly and crushing competition—at the direct expense of Minnesota families and small businesses.

While the state’s community solar program is capped at 5 MW and must have at least 25 subscribers per MW, the program became more inclusive last year when a new 30% carveout was added for LMI ratepayers. According to a report by Arcadia, this benefits affordable housing and public interest groups, such as nonprofits and libraries, enabling more LMI consumers to reap the benefits of clean energy

According to the Community Solar Garden Study, conducted by the Minnesota Department of Commerce, in ten years the program delivered affordable, renewable energy to over 34,000 families and businesses and is projected to generate $1.67 billion in economic benefits statewide. The study also found that the program is expected to deliver $139 million in net benefits to LMI subscribers and $116 million to non-LMI subscribers.

The five groups that issued the joint statement said that, “rolling it back would kill local clean energy jobs, weaken our grid, eliminate critical savings for thousands of households, and drive energy costs higher at a time when Minnesotans can least afford it.”

The state is currently ranked 19th in the country for solar installations, receiving 4.7% of its electricity from solar, according to the Solar Energy Industries Association. While Minnesota was the first with a community solar law, it could be “the first state to dismantle a program that delivers savings, energy independence, and economic opportunity to our communities,” the joint statement said.

The Senate hearing for SF 2855 will be on Wednesday, March 26 at 12:30 p.m. CT. The House companion bill (currently unnumbered) will be heard at the House Energy Committee meeting on Thursday, March 27 at 1:00 p.m. CT. 

This article was amended on 03/26/25, as it incorrectly identified the Minnesota Chamber of Commerce as study author, while it was the Minnesota Department of Commerce. Also to state that the state was one of the first programs, not the first.

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