Net metering for solar makes electrical power generation more democratic
Photo by.
Editor's note: The Reformer is publishing dual commentaries as Minnesota lawmakers consider changes to the state's net metering law. Read the competing commentary here.
Our state net metering policy is what allows Minnesotans to install solar and be power producers, not just power consumers. Net metering requires that solar owners be fairly credited by the electric utility when the owner delivers solar power to the grid.
But the first goal of a monopoly is to maintain their monopoly. This is why monopoly power utilities are constantly trying to weaken net metering. They want to be the only option when it comes to delivering power.
The concept of net metering is fair and simple. Power produced by a small solar array — defined in state law as an array under 40 kW — is first consumed by the homeowner, small business or farmer who installed it. If there is any power they can't use, it goes to the grid, flowing to nearby power users. The utility charges the user for that power even though the utility did not produce it. The utility then credits the solar owner who produced the power that same amount. For the utility, this is an economic wash — the credit is equal to the income the utility generates for charging for the solar owner's power.
Net metering is key to advancing small-scale solar, which benefits us all.
First, it quickly adds renewable solar power to our energy mix. With the demand for electrical energy surging as more of our cars and appliances become electric, we need all the renewable energy we can get as soon as we can get it. Rooftop solar goes up in weeks, as opposed to utility scale solar — which takes years. Second, producing power closest to where it is used is most efficient. There is almost no line loss with rooftop solar, and it reduces the need for large transmission lines. Third, it allows Minnesotans to take control of their energy costs and become energy producers, not just consumers.
Representatives of Minnesota's rural electric cooperatives and municipal power companies are proposing state legislation to gut net metering. They propose that when a solar owner shares electricity with the neighbor, a rural electric cooperative or municipal utility can still charge the neighbor full retail price, but for any credits the solar customer has at the end of the year, they will compensate them a small fraction of that. And rural electric cooperatives and municipal utilities already can and do charge solar access fees just for having solar. They want to keep charging solar owners a fee for having solar and pay them a dramatically reduced rate for solar they deliver to the grid.
I can see why they would want this change. I can't see how they can claim it is fair.
Opponents of net metering like to bring up California, but that comparison actually makes the case for Minnesota keeping our current policy.
California had such a successful net metering policy that they reached 2 million rooftop solar arrays (versus fewer than 25,000 in Minnesota) which by one analysis has saved utility customers as much as $1.5 billion in 2024 alone. But utilities succeeded in dramatically weakening California's net metering law by pushing a cost shift myth. As a result, the adoption of solar slowed and thousands of solar jobs were lost. (For a deep dive on this issue go to the Solar Rights Alliance website.) That isn't what we want here in Minnesota.
Solar United Neighbors is a non-profit that works with folks throughout the state to help them go solar. The majority of people we work with are middle or lower income and small businesses looking to control energy costs and be a part of a carbon-free energy future. This is also what the Lawrence Berkeley National Laboratory reports from their 2024 report on the income of solar adopters: 'Roughly 49% of solar adopters in 2023 had incomes below 120% of their area median income, a threshold sometimes used to define 'low-and-moderate income,' while 26% were below 80% of AMI, often used to define 'low-income.'' It's a myth that solar adopters are only wealthy. In fact, solar is a key way that middle and lower income folks can take control of their energy costs.
Solar is still emerging and growing in Minnesota, especially in rural areas. The overwhelming majority of utilities in Minnesota have solar penetration that is less than 1% of customers with fewer than 500 small solar arrays in their service area. Changing our net metering policy now would reduce solar adoption dramatically just when it is most needed.
Decentralizing and democratizing our energy production may threaten monopoly utilities, but it is clearly in the public interest and we should be proud that Minnesota has a simple and fair net metering policy that is making this possible.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
2 hours ago
- Axios
Minnesota could cut popular e-bike rebates to $750
Minnesota's popular e-bike rebates could be capped at $750 and reserved for residents with lower incomes as part of the state budget. What's happening: Draft language included in a broader transportation funding agreement would make those changes heading into the second and final year of the pilot. Plus: Under the bill, the remaining $2.2 million in rebate money would be distributed via lottery, not a first-come, first-served application, if demand again exceeds available cash. The big picture: The taxpayer-funded pilot, approved by DFL legislators in 2023, hit a speed bump last year when a surge in applications caused the sign-up system to crash. Backers of the changes say the tweaks will make the process smoother and allow the program to reach more Minnesotans in its second and final year. Context: The original law directed the Department of Revenue to cover between 50% and 75% of an e-bike's cost, with rebates capped at $1,500. Under the revised language, the state would scrap that sliding scale and instead cut the maximum amount in half. The fine print: The new income limits would restrict the program to married couples making under $78,000 and singles making $41,000 or less. What's next: The transportation bill will get a vote during an upcoming special session to pass the budget, which could happen as soon as this week.
CBS News
5 hours ago
- CBS News
Get a text from the "Minnesota DMV"? It's a fake, officials say.
State officials are warning Minnesotans that texts about unpaid traffic tickets are part of a scheme to steal personal information. The Department of Public Safety said the texts purport to be from the "Minnesota Department of Motor Vehicles" or "DPSMN" and request payment, using "threatening language to pressure them into paying." "These messages are not only fraudulent — they're frightening," said Driver and Vehicle Services Director Pong Xiong. "We understand how upsetting it can be to receive multiple threatening messages demanding payment. If you're unsure, please reach out to us directly. We're here to help protect your information and your peace of mind." The agency said not to open any links in these text messages and that it will never request payment or even broach traffic tickets via text. Anyone who has already fallen victim should report it to the FBI. Officials also recommended following these steps: Do not respond to the message or click any links. DPS and DVS will never ask for your information or money by text. Do not give money or personal information. If you think the message might be real, contact DVS through our website at Report the message as junk or spam and delete it.
Yahoo
8 hours ago
- Yahoo
Minnesota's workers are gaining. Trump and his henchmen could take it all away.
Construction workers in Minneapolis. Union construction workers earn higher wages, and most have health and retirement benefits. They also complete years of apprenticeship training to learn their craft with the highest standards of safety and productivity. Photo by Max Nesterak/Minnesota Reformer. I've been a Minnesota sports fan my whole life, so I know false hope. Every year, at least one of our teams shows signs of championship form, only to see that promise wiped out in some new, heartbreaking fashion. (Thank goodness for the Frost and Lynx.) Unfortunately, I worry Minnesota workers are now in a similarly tenuous position — on the brink of meaningful progress, but susceptible to a sudden loss. That's the conclusion reached in the latest State of Working Minnesota, an annual look at the status of working people in the North Star State. Over the past year, working families have made significant strides, including record-high job numbers and a record-low uninsured rate. But like a Minnesota team on the precipice of glory, there are reasons to worry. Federal policies advanced by the Trump administration, Elon Musk and congressional Republicans could undo years of growth for working Minnesotans. Let's start with the good news. In 2024, Minnesota added more than 40,000 jobs, outpacing gains from the previous year. Construction, education, health services and government jobs led the way —sectors that are vital to both our economy and our communities. The state's unemployment rate remained low, while labor force participation rates stayed high, indicating a relatively large portion of the state is trying to work and finding work. Gains have been particularly strong for certain groups. In a dramatic turnaround, Minnesota now boasts the lowest Black unemployment rate in the Midwest after having the region's highest rate during the Great Recession. Among prime working-age adults (25 to 54), Minnesota has the second-highest labor force participation rate in the nation. At the same time, the North Star State made real headway in tackling economic inequality. In 2024, the gap between high and low earners fell to a 25-year low. We've enjoyed a 56% decline in the share of Minnesota workers earning poverty-level wages over the past ten years. More than half of Latino workers took home wages that put them below the poverty line in 2014, whereas today it is just 16%. One explanation for these gains: Organized labor is showing signs of resurgence in Minnesota. Countering a decades-long decline, union membership jumped nearly 7% in 2024. Women led the way, with unionization among female workers rising 20%. The state's workers are also demonstrating an increased interest in unions. The past two years saw the most union elections in nearly two decades, and these elections had a higher success rate than at any point since 2000. These wins are more than symbolic: Union workers in Minnesota now earn a median wage 20% higher than their non-union peers. Minnesotans are finding family-sustaining jobs, and they are safer while working. In 2024, Minnesota posted the lowest rate of workplace fatalities in the Midwest. Outside of the workplace, our uninsured rate hit a historic low of 4%, the fourth lowest in the nation, and a 52% decline since 2013. A big part of this drop can be attributed to the rising number of Minnesotans getting health coverage through Medical Assistance, which is what we call our Medicaid program. Contrary to the stereotype of this care going to people who are not working, working families have come to increasingly rely on Medical Assistance. To be sure, there are plenty of areas where more work is needed. Minnesota's gender wage gap grew in 2024, with Minnesota women making approximately 81 cents on the male dollar. While the state can claim one of the highest rates of employer-provided health coverage in the country, we also suffer the nation's largest level of racial inequality in this coverage. Ultimately, the gains made for Minnesota's workers indicate a state moving in the right direction, as well as the need for further investments to address these outstanding issues. By contrast, federal policy changes portend a full-scale reversal to benefit the rich at the expense of working Minnesotans. Republican plans to cut Medicaid to partially pay for tax cuts for the wealthy would decimate health care for working people, with particularly strong impacts in communities of color and rural areas. Federal cuts promoted by the richest man in the history of the world have targeted key areas of job growth in Minnesota: education, health, and construction jobs to build a green future. And, the Trump administration has made no secret of its desire to weaken unions, undermining one of the most effective tools workers have for raising wages and protecting benefits. As Minnesota sports fans, we're used to heartbreak we don't control. We can't make the kick go through the uprights or hit the game-winning three. But when it comes to public policy, we're not just spectators. Lawmakers — and the public who hold them accountable — have a real say in what happens next. The progress made by Minnesota workers in 2024 didn't happen by chance; it was the result of deliberate policy choices, robust public investments, and strong labor protections. We may not be able to change the score on the field, but we can still fight for a future where that kind of progress isn't easily undone.
