Community Solar: When Sustainability = Savings

You’ve heard the phrase win/win? Well, community solar in Minnetonka is exactly that: we pay below-market prices for solar energy for our entire municipal electricity supply - all city-owned buildings and property. The savings are approximately $500,000 per year, or $12.5 million over the 25 year agreement.

Community solar is a relatively new thing, but it’s not complicated. Minnesota utility regulators, in the process of encouraging more investment in renewable energy, give private companies the opportunity to build “solar gardens” (effectively a power plant, made up of solar panels) and connect them to Xcel’s electricity grid. These private companies find buyers for the electricity they add to the grid, often for below Xcel’s price.

Almost 10 years ago, Minnetonka city staff and Councilmember Patty Acomb began to make the case for this program. The premise was simple - Minnetonka would be supporting renewable energy, without needing to build and maintain its own solar garden, and make a long-term agreement that would provide a lower and more predictable price than Xcel’s historically volatile energy prices. As a city, we were in the unique position of being financially sound and able to sign a long-term contract. So, they signed the agreement, but only a partial one - because Minnetonka is both innovative and cautious. After a few years of the community solar program working as promised, the city signed an agreement to purchase enough electricity for all city operations - which increased our savings.

In the broadest sense, sustainability means meeting the needs of the present without compromising the ability of future generations to do the same. There was an upfront investment in staff time to research and manage a new agreement, but today Minnetonka is more financially successful through supporting clean and local renewable energy. Over the next decade, Minnetonka will make other investments in sustainability, and whether the payoff is financial or a longer-term benefit to the health of our outdoor spaces, these innovative and cautious decisions will preserve our community for future generations. It’s the Minnetonka way!