Minnesota Net Metering


Program Type Net Metering
Technologies Photovoltaics and other renewables
Amount Credited at retail rate toward future months                                                                            
Required Documentation Interconnection agreement with utility
Official Web Site https://www.revisor.mn.gov/statutes/?id=216b.164

Minnesota’s net-metering law is intended to “to give the maximum possible encouragement to cogeneration and small power production consistent with protection of the ratepayers and the public.” As such it’s one of the strongest net-metering laws in the country.

Under Minnesota’s net metering law, qualifying power-producing systems, like PV and solar thermal electric, under 40 kWs are eligible to net meter with their utility. This applies to all investor-owned utilities, municipal utilities and electric cooperatives. Net excess generation (NEG) is credited or reimbursed at the customer’s average retail utility electricity rate.

The rate is defined by the state as "the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales," which allows for an estimated average retail rate. Customers can choose to receive a check for NEG or have it credited toward future months. Minnesota is one of a few states that require net-metering payments to be made at rates equal to or near retail rates. Most other states that offer net metering with payments only reimburse NEG at avoided-cost rates or less.