Wednesday, May 01, 2019

Government Mandates, Not Free Markets, Responsible for Minnesota's Solar Growth - American Experiment

Government Mandates, Not Free Markets, Responsible for Minnesota's Solar Growth - American Experiment
"...Despite the poor solar resources in Minnesota, our state had installed 882 MW of solar. 
This is an awful lot of solar panels given the fact that solar irradiance is low here, especially compared to states like Arizona and California, and it strongly suggests the growth in solar in Minnesota is a product of government mandates and rate structures, not free markets.
In 2013, the Minnesota legislature passed legislation requiring 1.5 percent of Minnesota’s electricity come from solar by 2020, and it also established Minnesota’s Community Solar Garden program, which requires Xcel Energy to purchase electricity from the facilities at a rate of $110-125 per megawatt hour. 
This is four times the cost of electricity generated at the Sherburne County coal plant, which generates some of the lowest-cost electricity in the state.
Given this sweetheart deal, it’s no surprise that 57 percent of the solar installed in Minnesota is Community Solar..."
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