FOR IMMEDIATE RELEASE
Date: August 4, 2025
Media Contact:
Megan Holz, Director of Marketing & Engagement
952-715-1419
Court of Appeals Upholds PUC Decision That Will Cost Minnesotans Millions, Threatens State's Clean Energy Future
St. Paul, MN— Today’s opinion by the Minnesota Court of Appeals to affirm the Minnesota Public Utilities Commission (PUC) 2024 ruling to retroactively alter bill credit rates on community solar gardens (CSGs) is a severe blow for Minnesotans. This undermines the compensation paid to subscribers and is a violation of statutory limits, contract law, and developers’ reasonable expectations.
This nonprecedential opinion will require all CSG subscribers receiving the applicable retail rate (ARR) as their community solar credit to move to a value of solar (VOS) credit rate. The VOS is approximately 20-30% lower than the ARR.
“The CSG program plays a vital role in providing relief to Minnesota families in the face of rising energy bills and is an important tool to help Minnesota meet our rigorous carbon-free goals,” said Logan O’Grady, Executive Director of MnSEIA. “This decision harms ratepayers who relied on and planned for the cost savings community solar provided and makes financing and developing clean energy projects in Minnesota more expensive and risky.”
The contracts promised solar garden developers and subscribers ARR-based bill credits for 25 years—terms approved by the PUC in 2014 and 2016. Affidavits show the shift threatens financing agreements, may cause defaults, and undermines investor and subscriber confidence. Changing the contracts violates the U.S. and Minnesota Constitutions’ Contracts Clauses due to substantial impairment with no legitimate purpose and sends the signal to the marketplace that legally binding contracts can be violated in Minnesota.
“Subscribers were promised bill credits that would keep pace with their electricity bills, based on the rates in place when they signed up. But under the VOS, those credits no longer rise with retail rates—meaning customers will fall further behind as costs increase. By siding with the PUC and Xcel Energy, the Court of Appeals has chosen to hurt both CSG subscribers and the companies that have invested hundreds of millions in private capital to serve them,” said Kevin Cray, Vice President of Existing Markets and Regulatory Affairs at the Coalition for Community Solar Access.
This decision will have far-reaching financial consequences for thousands of Minnesotans, including local governments, school districts, and nonprofits that subscribed to community solar based on 25-year contracts. Cities like St. Cloud, St. Paul, and Maple Grove stand to lose millions in expected savings—funds they had planned to reinvest in core services and climate goals. School districts such as Big Lake, Rocori, and Winona Area Public Schools report that lost savings may force budget cuts that directly affect students. Cooperative Energy Futures, a community-owned solar developer serving predominantly low-income households, anticipates losing over half of its member-subscribers from the affected gardens, with some families facing over $500 in lost annual savings. These institutions and families did the right thing—signing up for clean energy and stable utility costs. Now, they’re being penalized for trusting Minnesota’s clean energy commitments.
MnSEIA, CCSA, our members, and our partners are exploring all options to protect Minnesotans’ rights and ensure clean energy remains affordable, accessible, and contractually sound.
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About MnSEIA:
The Minnesota Solar Energy Industries Association (MnSEIA), a 501(c)6 nonprofit, promotes and protects Minnesota’s solar and energy storage industries. We harness the strength of our 170+ member companies at the state legislature, in the regulatory arena, and the courtroom. We Move MN Solar + Storage Forward in a unified and actionable way that establishes a vibrant sector of the clean energy economy. Find out more at www.mnseia.org.
About CCSA:
CCSA is a national trade association representing over 125 community solar developers, businesses, and nonprofits. Together, we are building the electric grid of the future where every customer has the freedom to support the generation of clean, local solar energy to power their lives. Through legislative and regulatory advocacy, and the support of a diverse coalition — including advocates for competition, clean energy, ratepayers, landowners, farmers, and environmental justice — we enable policies that unlock the potential of distributed energy resources, starting with community solar. For more information, visit https://www.communitysolaraccess.org and follow the group on X (Twitter), LinkedIn, and Youtube.