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Yesterday afternoon, the Minnesota Public Utilities Commission approved the methodology for calculating value of solar (VOS) tariffs in Minnesota as developed by the Department of Commerce. In doing so, Minnesota became the first in the nation to adopt a VOS tariff methodology.

The Commission was required by statute to take action on the VOS calculation methodology by the end of the month. It had three options: to approve it as proposed, reject it, or approve it with modifications and with the consent of the Department. For background on the Department’s January 31st recommendation, see our blog posts here and here. The Department subsequently included several modifications affecting the fuel price escalation factor, the avoided distribution capacity cost, and the environmental cost categories.

In its ruling, the Commission approved the Department’s methodology, as amended, by a 3-2 vote.Continue Reading Value of Solar Achieves a New Dawn in Minnesota

After a full day of hearing arguments on Xcel’s proposed Community Solar Garden (CSG) program (see more on that here), the Minnesota Public Utilities Commission deliberated in public on the issue yesterday and made some important modifications to Xcel’s proposal. The program would allow Xcel customers to invest in off-site solar facilities and receive…

by Sara Bergan and Sarah Johnson Phillips

In May 2013, the Minnesota Legislature passed legislation that, among other things, set a solar standard, directed Xcel Energy to develop a community solar garden program, and provided for the development of an alternative tariff mechanism to net metering that would also serve as the rate for community solar garden programs. Under this new scenario and instead of traditional net-metering arrangements, customers would potentially buy all of their electricity from their local distribution utility and then sell all of their PV generation under that utility’s Value of Solar (VOS) tariff which would be designed to capture the societal value of PV-generated electricity.

The legislation directed the Department of Commerce to work with stakeholders to develop a VOS methodology and to deliver its recommendations to the Minnesota Public Utilities Commission (Commission) on Friday, January 31, 2014.  The Department’s filing today includes its recommendation, with a more in-depth document addressing the methodology.  The  Department’s recommendations do not set a rate, but rather propose the methodology for calculating a utility-specific rate for distributed PV solar (1 MW and smaller). If the Department’s sample calculation is any indicator of what’s to come, however, the value went from $0.126/kWh in its initial draft to $0.135/kWh in the documents filed this morning.Continue Reading What is the Value of Solar? Minnesota Agency Starts to Answer. . .

See my colleague Wayne Rosenbaum‘s recent post on the question of how failed solar panels could be treated under federal and California waste laws:

Recently the New York Times published an article highlighting the high rate of solar panel failures well before their expected life times.  While the article focused on the question of product liability, it raises another question.  How does the law, particularly waste laws, define a solar panel that is no longer fit for its original intended use or purpose?

Under current federal and California law, the manufacturer of a non-functioning solar panel does not have an obligation to take back panels at the end of life as it does under the EU WEEE Directive.  However, it is likely that this will change as the US PV market matures and more arrays approach end of life or fail.  Panel manufactures are encouraged to monitor this issue and potentially to participate in contingency planning or rulemaking. 

 

Regarding the disposal of defective panels, once an entity takes title to the panel it becomes the owner of that panel. This includes lenders who take title through foreclosure.   As such, the owner becomes responsible for the panel’s proper handling and disposal.  This requirement raises the question:  Once the owner takes possession what will it do with the panel or its components at the end of their useful life?

 Continue Reading Failed Solar Cell Could Be Hazardous to More Than the Owner’s Bottom Line