Bill > HF845

This bill modifies Minnesota's net metering laws by updating definitions and compensation rules for small-scale electricity generation facilities. The bill provides more precise definitions for terms like "distributed generation," "net metered facility," and "capacity," clarifying that distributed generation refers to facilities 10 megawatts or less that generate electricity from clean fuels. For smaller qualifying facilities (less than 40-kilowatts for cooperative and municipal utilities, and less than 1,000-kilowatts for public utilities), the bill establishes how customers will be compensated for excess electricity they feed into the utility grid. The compensation will be based on "avoided costs" as defined by federal regulations, which essentially means the cost the utility would have incurred to generate or purchase that same amount of electricity. The bill also introduces a new provision allowing customers with facilities below 40 kilowatts to carry forward kilowatt-hour credits on their energy bill, with any unused credits at year-end being compensated at a set rate. Importantly, these new rules will only apply to qualifying facilities that begin operation after June 30, 2025, ensuring existing facilities are not immediately impacted by the changes.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0845&ssn=0&y=2025