1.1 	A bill for an act
1.2 	relating to energy; modifying the solar energy incentive program;amending 
1.3 	Minnesota Statutes 2019 Supplement, section 116C.7792.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2019 Supplement, section 116C.7792, is amended to read:
1.6 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
1.7 	(a) The utility subject to section 116C.779 shall operate a program to provide solar 
1.8 	energy production incentives for solar energy systems of no more than a total aggregate 
1.9 	nameplate capacity of 40 kilowatts alternating current per premise. The owner of a solar 
1.10 	energy system installed before June 1, 2018, is eligible to receive a production incentive 
1.11 	under this section for any additional solar energy systems constructed at the same customer 
1.12 	location, provided that the aggregate capacity of all systems at the customer location does 
1.13 	not exceed 40 kilowatts.
1.14 	(b) The program shall be operated for eight consecutive calendar years commencing in 
1.15 	2014. $5,000,000 shall be allocated in each of the first four years, $15,000,000 in the fifth 
1.16 	year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the eighth year 
1.17 	from funds is funded by money withheld from transfer to the renewable development account 
1.18 	under section 116C.779, subdivision 1, paragraphs (b) and (e), and. Program funds must 
1.19 	be placed in a separate account for the purpose of the solar production incentive program 
1.20 	operated by the utility and not for any other program or purpose.
1.21 	(c) The following amounts are allocated for the solar production incentive program: 
1.22 	$17,000,000 in 2020; $15,000,000 in 2021; $15,000,000 in 2022; $10,000,000 in 2023; and 
2.1 	in 2024, any unspent amount remaining from program years 2020 through 2023. Any unspent 
2.2 	amount allocated in the fifth during a specific program year is available until December 31 
2.3 	of the sixth year for use during any subsequent program year. Any unspent amount remaining 
2.4 	at the end of any other allocation yearon January 1, 2025, must be transferred to the 
2.5 	renewable development account.
2.6 	(d) The solar system must be sized to less than 120 percent of the customer's on-site 
2.7 	annual energy consumption when combined with other distributed generation resources and 
2.8 	subscriptions provided under section 216B.1641 associated with the premise. The production 
2.9 	incentive must be paid for ten years commencing with the commissioning of the system.
2.10 	(e) The utility must file a plan to operate the program with the commissioner of 
2.11 	commerce. The utility may not operate the program until it is approved by the commissioner. 
2.12 	A change to the program to include projects up to a nameplate capacity of 40 kilowatts or 
2.13 	less does not require the utility to file a plan with the commissioner. Any plan approved by 
2.14 	the commissioner of commerce must not provide an increased incentive scale over prior 
2.15 	years unless the commissioner demonstrates that changes in the market for solar energy 
2.16 	facilities require an increase.

2.17 	EFFECTIVE DATE. This section is effective the day following final enactment.