Most people do not typically associate Minnesota with abundant sunshine, but after a landmark decision by the Minnesota Public Utilities Commission (PUC) yesterday the sun is definitely shining on this snow-swept state. The PUC established the first statewide program to fairly value investments in rooftop solar electricity generation. I listened to a portion of the public meeting and oral arguments, which lasted several hours and demonstrated much thoughtful work. Through a refreshingly civil display of democracy and Midwestern hard work, state officials, utilities, and the solar and environmental community were able to hash out a method for valuing solar resources that are key to a clean energy future.
Yesterday’s decision dealt with the ongoing debate over how much solar power is worth to a utility, its ratepayers, society, and the environment. The PUC did not establish a set price for a statewide solar tariff, but rather the method to be followed when utilities calculate how much to pay for electricity generated by rooftop solar systems. Minnesota utilities will now have the option to file tariffs using this method instead of net metering, the more common but controversial and less scalable cousin of the “value-of-solar” (VOS) tariff.