Tag Archives: Solar Financing

The Omnibus Energy Bill and What Solar Means for Schools

The Omnibus Energy Bill

Minnesota legislators recently approved the omnibus commerce and energy policy and finance bill. The aim of the bill is to support renewables, electric vehicle charging infrastructure, make prescription drugs more affordable, and provide additional rights to student loan borrowers. As far as energy is concerned, over $60 million will be used by the renewable development account for the following:

Reaching net zero emissions by 2050.
Establishing building electrification goals.
Creating a process and transition program for retiring generation facilities.
Improving siting provisions for solar on farmland.
Creating carbon intensity reduction standards for transportation.
Facilitating the expansion of a solar plant.
Supporting solar projects on k-12 schools and community colleges.
And many other initiatives.

With Minnesota’s economy reopening and the school year quickly approaching, this program will be instrumental in providing schools equitable access to solar energy.

What it Means for Schools

$16 million will be available for solar projects on K-12 schools, and $5 million will be available for community college projects. In greater Minnesota, the maximum system size will be capped at 40 kW and projects in Xcel will be capped at 1 MW. The Minnesota Solar Energy Industries Association projects that the funds could support roughly 350 schools across the state, nearly tripling the current total of school installations.

There is a focus on equity within this program as well. Within Xcel territory, 40% of the program’s funding will be directed to schools where at least 50% of students receive free or reduced lunches. This will help school districts with a large percentage of low-income students invest in solar and save on utility bills.

Saving on Utility Bills

Installing solar panels can greatly reduce utility spending on schools, saving significantly in the long run. For example, Mounds View School District installed solar on 13 buildings, and will reduce energy costs by $2 million over the next 25 years. With solar, schools can also protect against rising electricity costs, guaranteeing electricity prices for up to 20 years.

Hands-on STEM Opportunities

Solar isn’t just a way to save money on energy, it also provides an opportunity to educate the next generation of energy leaders. Take ISD 197’s sustainability manager’s example, “It’s hard to encourage kids to be excited about learning about energy. This is one way that they can actually see it in action.” In fact, schools must have an educational component in order to participate. In addition to providing an opportunity to see solar in action, IPS clients are offered standards based STEM curricula and educator workshops, free of charge with the Sunrise Program.

Acting Sustainability

Switching to solar energy is one of the biggest changes we can make in our communities to curb climate change. According to the Environmental Protection Agency (EPA), generating electricity contributes over one-third of all greenhouse gas emissions in the United States. With rising concerns about our carbon footprint and the mounting cost of energy, solar is a wise investment for the health of the environment and generations to come.

Flip the Switch on Solar for your School!

Nearly a third of all Minnesota schools with solar have worked with IPS, and we are happy to help educate schools about the efficacy of solar energy. If you’re interested in learning more about solar, or seeing if solar is right for your school, simply request a quote, call, or reach out to info@ips-solar.com to get started. We’d be more than happy to coordinate a tour at one of our schools to see an array in person!

Helpful Links for Schools Considering Solar Energy:

MN Clean Energy Resource Teams | Additional Omnibus Energy Bill Info | Our Schools | Standards-Based STEM Curricula

2020 Solar Trends: National Price Trends

Good news, from a high level view, is that there’s continued downward pressure on system pricing. There are, however, several factors that are working against this trend and increasing cost.

Tariffs are a major factor. In 2018, the US international trade commission levied an import tariff on solar products, which phases down over four years. This has increased panel prices compared to the rest of the world by as much as 60%.

2020 Solar Trends: Community Solar for Breweries

We all love craft breweries! The popularity of local microbreweries is exploding in the United States, but how can they maximize their profits and minimize their operating expenses? Well, community solar is a great opportunity to do just that.

Former CEO of Insight Brewing Co., and now solar sales representative, Ilan Klages-Mundt is joining Eric Pasi to discuss how subscribing to community solar benefited his business.

Interested in learning how a community solar subscription could save your business thousands in operating costs? Give us a call: 651-789-5305!

2020 Solar Trends: MN Community Solar Updates

In 2020, Minnesota Community Solar financing is becoming one of the most popular financing mechanisms for commercial solar projects. The community solar program allows residents, businesses, and public entities to participate in solar that’s not located on their property.

Each year in September Xcel proposes a bill credit rate for the following year. This is based on a set of attributes like avoided costs and environmental impacts to develop a state-approved formula called the Value of Solar.

This rate has fallen slightly each year since 2017 to about 11 cents per kilowatt-hour levelized.

Xcel says its value of solar rate is on track to more than double to about 25 cents per kWh for projects coming online in 2020 — a result that is “unreasonable, unrepresentative, and clearly falls outside of the public interest,” according to the utility.

A compromise is currently being hashed out at the public utilities commission with a likely rate around $.12 per kilowatt hour levelized.

This will allow for continued development, although capacity on the grid is increasingly hard to come by.

2020 Solar Trends: ITC Update!

The investment tax credit, also known as the federal solar tax credit, allows you to deduct 30 percent of the cost to install solar from your federal taxes.

The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.

On December 17th, 2019, we learned that the federal tax extenders bill would not include an extension of the ITC, despite solar’s bi-partisan popularity.

Without the extension, the credit will phase down as outlined in congress’ 2015 compromise:

30% = 2019
26% = 2020
22% = 2021
10% thereafter, for Commercial projects only

Your solar project must be energized to qualify for that year’s tax credit rate.

There are safe harbor provisions that allow projects to start in a given calendar year and still qualify for that year’s rate, typically by spending at least 5% of the projects cost and starting construction activities.

2020 Solar Trends: PACE Financing

We are counting down the top ten solar trends that you need to be aware of going into 2020! It’s day two and we are talking changes to PACE financing & tips on how to make it work for you and your business!

PACE has several distinct advantages in that it is typically not considered debt on the balance sheet, and can be shown as owner equity similar to a mezzanine financing on new construction.

Impact Power Solutions | IPS