HomeMy WebLinkAbout2015.03.16 CC PowerPoint Community Solar GardenCommunity Solar
Garden in Hugo
Minnesota Solar Energy Legislation
• In 2013 the state enacted the Community
Solar Program to significantly increase the
production of clean energy
• Public utilities must dedicate a minimum of
1.5% solar energy production by 2020 (450
Mws)
• Solar Investment Tax Credit
• 30% federal tax credit
• Expires in 2016
pager to alternating current
(AC) power
Solar -related businesses have approached Hugo
1. To build a Community Solar Garden
2. To subscribe Hugo to solar power
• Reduced electric rates
SolarStone
has made
a specific
proposal
to
the
City
1. Build solar panels on
40 acre
parcel,
west of
post office
• Owned by the City
2. Subscription agreement to provide solar
power to the City
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Ilk
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tz,
41 MV
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• The property consists of wetlands
• Unbuildable open space
• SolarStone claims wetland laws allow for construction of solar panels
• Although property is public land, it is not designated as a park
City -Owned Property
• Approximately 40 acre piece of land
• The City would receive land lease payments from
SolarStone for up to 35 years
• It requires approximately 5 acres to produce 1 MW
of power
• $25 million dollars to construct 1 MW of power
• Solar gardens can produce up to 5MW of energy
per site
• About 20,000 panels
• $125 million dollar project
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How it works:
1) Subscribers sign up for a 25 year period with a fixed
electrical rate
• (Average electrical rates historically increase 2-4% on
average per year)
2) SolarStone produces energy
3) Xcel pays SolarStone for this energy
4) SolarStone sends subscribers their electrical usage
5) Subscribers pay Solarstone a lower rate per KW/h
than Public Utilities generally charge
6) Xcel sends subscribers bill credit
Benefits
• Energy Savings
• Tax, on generation of energy, for Washington
County and Hugo
• City receives lease payments
• New option for Hugo residents
Hugo gets to be a part of the renewable
energy technique of using solar
Options/Discussions
1. Negotiate agreements with SolarStone
• Contract to lease city property
• Subscriber agreement to buy solar power
2. Identify other solar companies
• Solicit proposals
3. Discourage use of city land for this purpose