HF1738

Purpose of the Bill

The bill is designed to change the way solar energy incentives are handled by addressing funding and management of solar energy production incentives in Minnesota. The bill also involves repealing certain existing statutes and establishing a new timeframe for the solar production incentive program.

Main Provisions

• Repeal of Renewable Development Account: The bill repeals the renewable development account and modifies related statutes.
• Changes to Solar Energy Production Incentives:
  • Maintains the solar energy production incentive for solar systems up to 40 kilowatts at a single location.
  • Allocates specific annual funds from 2021 to 2025 and continues through to 2035 for solar energy production incentives.
  • Reserves half of the allocated funds for low-income solar installations.
  • Allows any uncommitted incentive funds to be transferred back to the utility's customers unless obligated by the end of 2025. Unspent funds by 2028 will be moved to the renewable development account.
• Program Management Transition: The utility runs the program until December 31, 2025, after which the Minnesota Commissioner of Commerce takes over.
• Creation of Solar Energy Production Incentive Account: To be established for managing funds dedicated to solar incentives, effective 2026.

Significant Changes to Existing Law

• Sunset of Utility-Operated Incentives: The current utility-led solar production incentive program is set to end by December 31, 2025.
• Transition of Program Oversight: From 2026, the oversight transfers from utilities to the state's Department of Commerce.
• Funding Adjustments: Initial funding will come from funds withheld from existing accounts, and later, support will be annually appropriated from the general fund beginning in fiscal year 2027.

Relevant Terms

solar energy, renewable development account, solar incentives, low-income solar installations, Minnesota Commissioner of Commerce, utility programs, funding appropriation, energy production incentives