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Study Proves (Again) That Net Metering Can Undervalue Solar

| Written by Nick Stumo-Langer | No Comments | Updated on Mar 10, 2017 The content that follows was originally published on the Institute for Local Self-Reliance website at

PV Magazine – March 8, 2017

By Frank Andorka

Minnesota has long tried to determine the true value of solar, even passing a law in 2013 demanding that its Department of Commerce develop a methodology for determining the good solar does beyond its physical value.

Study after study has shown that the resulting incentive – a Value of Solar Tariff (VOST) – is often far more generous than the more common net-metering plans prevalent in other states – and the latest study by Minnesota Power is no exception.

John Farrell,  director of democratic energy at the Institute for Local Self-Reliance, believes the PUC’s request merely reflected its desire to get a number from Minnesota Power tjat it could compare to the number it received from the state’s largest utility, Xcel Energy. The PUC recently decided to test the VOST system for the Xcel Energy community-solar program – as required under 2013 legislation- to see how it will work in practice instead of theory.

“I suspect that MN Power, like Xcel, has no interest in using value of solar given that it results in higher payments to solar producers,” Farrell said. “In the long run, the value of solar will be a fair market price for community solar if the PUC decides to mandate its use – but I doubt they will do so with Minnesota Power until they’ve tested it out more with Xcel.”

In its filing, Minnesota Power requested that the PUC allow it to launch its community-solar pilot program under traditional net-metering laws. The commission has yet to make a decision.

Read the full story here.