Bill Summary: HF1619 - Minnesota Solar Energy Act

• Establishes mandatory solar energy standards for electric utilities requiring them to generate or procure solar electricity equal to 0.1% of retail sales by 2012, escalating to 10% by 2030, with intermediate targets of 0.4% (2016), 1% (2020), and 5% (2025).

• Allows utilities to comply through constructing solar installations, purchasing electricity and solar renewable energy credits from independent producers or customers, purchasing credits from approved markets, or making payments to the state energy conservation fund at average market price plus 25%.

• Requires the Public Utilities Commission to establish a separate tracking system for solar renewable energy credits and ensures credits can be used to meet either the renewable energy standard or the solar standard, but not both.

• Mandates utilities purchase solar electricity from public facilities (state, local government, or tribal property) with capacity up to 2 megawatts at specified rates ranging from 27.1 cents per kilowatt-hour for projects 10 kilowatts or smaller down to 0.9 cents for projects over 301 kilowatts, with power purchase agreements of at least 20-30 years.

• Requires the Commissioner of Commerce to determine and publish base prices for residential solar renewable energy credits by January 31, 2012, and every two years thereafter, ensuring prices reflect average prices paid by utilities and provide reasonable returns on investment.