MN Community Solar Rules
AI summary · 7/12/2026

Community Solar Gardens let you benefit from solar energy without installing panels on your home—ideal if you rent, have a shaded roof, or live in a multi-unit building. You subscribe to a solar project in your utility's service area and receive credits on your electric bill for your share of the electricity generated. Before subscribing, carefully review the contract terms, as costs, benefits, and credit rates vary by project.

As a developer, you can build and own community solar projects up to 5 MW capacity and sell subscriptions to customers in your service territory. Projects must meet state requirements: at least 25 subscribers, with 30% of subscribers being low or moderate-income households and 25% of capacity reserved for schools, affordable housing, government agencies, or other public interest organizations. For Xcel Energy territory, projects built in 2024 or later are administered by the Minnesota Department of Commerce under the Low- and Moderate-Income Accessible CSG Program, while earlier projects remain under Xcel's Solar*Rewards Community program; outside Xcel territory, local utilities own and operate gardens.

Minnesota's Community Solar Gardens program (renamed the Melissa Hortman Community Solar Garden Program in 2026) was established in 2013 and reformed significantly by H.F. 2310 in 2023. The Department of Commerce administers new projects (2024 onward) in Xcel territory; projects built before 2024 remain under Xcel Energy administration; utilities outside Xcel territory operate their own gardens. Key requirements include capacity limits of up to 5 MW per project, minimum 25 subscribers, 30% low/moderate-income participation, and 25% capacity reserved for public-interest organizations. Bill credits are now calculated using applied retail rates rather than the prior value-of-solar methodology. Contact: 651-539-1886 or CommunitySolar@state.mn.us.

Program details

Program ID
22436
Last updated
2/26/2026

Eligibility

Sectors
commercial industrial local government nonprofit residential schools state government federal government agricultural multifamily residential low income residential
Technologies
solar photovoltaics

Program summary

In May 2013, Minnesota enacted H.F. 729, which created the framework for Community Solar Gardens. The law set no cumulative capacity limits, but each Community Solar facility would be limited to 1 MW capacity.

Customers of Xcel Energy subscribe to community solar garden projects offered by private developers. Customers of other utilities may subscribe to community solar gardens that are offered by their utility.

H.F. 2310 of 2023 made major reforms to community solar rules. Community solar projects may now be up to 5 MW of capacity. 30% of each project's subscribers must be low or moderate-income. 25% of capacity must be reserved for schools, affordable housing providers, government agencies, or other public interest organizations. Each project must have at least 25 subscribers. The bill also changed the credit system for community solar subscribers from the value of solar (VOS) rate to a new system based on applied retail rates (ARR).

Xcel Energy is also now required to offer consolidated billing for community solar subscribers.

Contact & resources

Please verify current program details with the administering agency before making any financial decisions.

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