Value of Solar Tariff
Minnesota's Value of Solar Tariff is an optional alternative to net metering that credits you for the solar electricity you produce, while you are billed for all your usage under your existing tariff. It is not currently available because Xcel Energy and Minnesota Power have not adopted it, so check with your utility or the Minnesota Public Utilities Commission before planning around it. If a utility does offer it, you would get a contract of at least 20 years at the same per-kilowatt-hour rate, with unused credits carrying forward until the end of February each year.
A VOST would replace net metering for customers of a participating investor-owned utility, but as of March 2026 Xcel Energy and Minnesota Power have not adopted it, so it is not an option to sell to customers now. If a utility offers it, customers must still meet interconnection requirements and existing net metering size limits, and the utility must sign a contract of at least 20 years at a fixed per-kWh rate. For the first 3 years after the tariff is approved, the rate cannot be below the retail net metering rate, and credits expire at the end of February each year.
H.F. 729 (2013) directed the Department of Commerce to develop a distributed solar value methodology covering energy and delivery, generation and transmission capacity, line losses, and environmental value, and the MPUC approved it in April 2014. Investor-owned utilities may apply to the MPUC for a VOST in place of net metering, must recalculate it annually and file it for approval, and must offer contracts of at least 20 years at a fixed rate per kWh. Eligible sectors span residential, commercial, industrial, agricultural, institutional and government customers, but Xcel Energy and Minnesota Power have not adopted it, and the legacy community solar garden program used the VOST rate while the newer program uses fractions of the applicable retail rate.
Program details
- Program ID
- 5666
- Last updated
- 3/31/2026
Eligibility
- Sectors
- commercial industrial investor-owned utility local government nonprofit residential schools state government federal government agricultural multifamily residential institutional
- Technologies
- solar photovoltaics
Program summary
Note: As of March 2026, Xcel Energy and Minnesota Power have not adopted the VOST.
Enacted in 2013, H.F. 729 required the Minnesota Department of Commerce (DOC) to develop a distributed solar value methodology. Minnesota investor-owned utilities are permitted to use the approved methodology in applications for a Value of Solar Tariff (VOST) that would be used in lieu of a net metering billing mechanism. Under a VOST, customers are billed for all electricity usage under their existing applicable tariff and are credited for the solar electricity they produce under the approved VOST.
Methodology
The DOC was required to consult with stakeholders in order to develop the methodology for calculating a VOST. DOC was required to take into account the value of energy and its delivery, generation capacity, transmission capacity, transmission and distribution line losses, and environmental value. The DOC was also permitted to consider the cost or benefit of solar operation to the utility, credit for locally manufactured or assembled energy systems, and systems installed at high-value locations on the grid.
The DOC's final report is available here. The Minnesota Public Utilities Commission (MPUC) approved the DOC's methodology in April 2014 (link to Docket).
Implementation
Investor-owned utilities may to apply to MPUC for a VOST as an alternative to net metering. As of June 2025, Xcel Energy and Minnesota Power have not adopted the VOST.
If a utility chooses to offer a VOST, it is required to recalculate the VOST on an annual cycle and file the recalculated VOST with MPUC for approval. The VOST rate cannot be less than the retail rate used for net metering until 3 years after the MPUC approves the utility tariff. A utility must enter into a contract with an owner of a photovoltaic system for a term of at least 20 years. The owner will be compensated at the same rate per kilowatt-hour for the duration of the contract. Excess credits accumulated during a monthly billing period carry forward and expire on the last day of February each year. Customers entering into a VOST must still meet interconnection requirements and existing net metering size limitations apply.
Community Solar Gardens
Under Minnesota's previous community solar garden (CSG) program, subscribers were compensated at the VOST rate. However, under Minnesota's newer (non-legacy) CSG program, subscribers are instead compensated at fractions of the applicable retail rate (ARR).
Contact & resources
Please verify current program details with the administering agency before making any financial decisions.
