Co-op and city partner offer renters solar subscriptions

Jan. 15—MANKATO — People with money — and a sun-splashed property — have long been able to go solar by installing photovoltaic panels on their own property.

In 2013, the Minnesota Legislature extended the opportunities to owners of homes or businesses that were afraid of solar panel ownership and maintenance. This 10-year-old law encouraged the creation of “community solar gardens”, which were funded by dozens.

However, those subscriptions that often last years were most appealing to property owners who planned to stay put. Largely left out were lower-income households and renters — a group being targeted by Twin Cities-based Cooperative Energy Futures in partnership with the city of Mankato.

This year, a 1.2 megawatt solar array will be built near the intersection of Blue Earth County Road 69/60 southwest of the City. Subscriptions will be offered to residents of apartment buildings, mobile home park residents, and those with less than stellar credit scores.

Timothy DenHerder Thomas, general manager of Cooperative Energy Futures, stated that construction should begin in spring. “With our partnership with Mankato, the focus is primarily on renters in Mankato and low-income households. We expect around 180 households to participate.”

A monthly subscription fee is paid to the community developer for community solar gardens subscribers. They receive a share in the solar array, which can equal up to 120% the homeowner’s historical electricity consumption. The subscriber’s share in the array generates electricity which is then fed into Xcel Energy’s electric grid. Xcel credits the subscriber with the energy production and offsets a portion of the subscriber’s regular Xcel electricity bills.

Subscribers may see their share of the solar array producing much more electricity during the summer months when the arrays are at their most productive. The subscriber’s entire monthly Xcel billing is erased. In winter, solar credits can be banked to offset some of their monthly bills.

Subscriptions are popular because the credit value paid by Xcel over the year tends to exceed that of the subscription fees to the community developer of solar farms. This is a way to support green energy and also provide a financial benefit.

Cooperative Energy Futures’ Mankato solar garden will follow the model of the one that was completed in Janesville, 2020.

DenHerder Thomas said about the Waseca County solar farm that while we don’t have precise demographics, “we do have a lot of renters, residents in manufactured housing parks, as well as other low-income individuals.” “Our subscribers are saving approximately 10% on their electricity bills on net and this will continue to increase over time. As a co-op we also distribute profits to members, which we expect to grow over time.

He stated that most subscribers to the project were located in Waseca or Rice counties, with a few dozen in Mankato.

In partnership with the city, the city developed both the current solar garden and the future one. Mankato’s civic center serves as a backup customer for the CEF solar garden power. So if the renters and other low-income subscribers relocate out of the region or default on their subscription, Mankato is available to take their place — and to receive the power bill discounts from Xcel.

CEF is relying on the assurances from Mankato to finance the construction and operation of the solar panel.

DenHerder Thomas said, “We need the institutional support subscriber to create stability for a large customer that can allocate extra energy if residents leave or default.” “It allows us to ensure financiers that there will be a place for excess energy, even if households with low incomes or rent leave the project.”

He said that the result was a community solar garden, which can provide subscriptions to all households, without the high credit scores or income thresholds often required in this industry. Even though the subscription model is more complex, it serves the cooperative’s purposes.

“…. The primary purpose of a member-owned enterprise is to serve residents. This includes renters, low-income households and people of color, who are less likely than others to be able create clean energy.

CEF informed the council that it will collaborate with Mankato’s affordable-housing staff to reach potential subscribers. The memo also stated that subscriptions will not incur upfront costs and that they can be moved if a tenant moves to another county within the county or an adjacent county serviced by Xcel.

Susan Arntz, City Manager of Seattle, stated that “it is an intriguing opportunity to people in our community connect with solar power in a way which hasn’t been possible to them before now.”