To: The Minnesota State House and The Minnesota State Senate
Support Minnesota Rural Distributed Generation Tax Credit and Wind Gardens
I encourage you to support HF 1455/SF 1657 to establish a state Rural Distributed Generation (DG) Tax Credit because it provides farmers and rural businesses with a tool to encourage investment in renewable energy systems that will help them lower agricultural or business production costs, avoid reliance on fossil fuels, and address energy volatility for the long term.
I also encourage your support of legislation to expand the community solar garden financial model to allow Xcel Energy customers to buy into local wind projects.
Rural DG Tax Credit: The customers with the best land area resources available to host distributed renewable energy systems are located on rural electric lines and pay the highest electric rates. Minnesota’s 44 electric distribution cooperatives, serving 741,000 customer meters and covering 85% of the geographic area in the state, stand to benefit considerably from the state’s investment. DG systems help diversify our energy supply and relieve some of the burden on energy producers during peak energy times in the summer and winter. DG systems also avoid expensive transmission upgrades and projects that increase costs for all ratepayers.
Community Wind Gardens: Individual Xcel Energy customers, including those unable install their own wind turbines (i.e. renters and people in low wind areas), can help increase the amount of wind power in Minnesota if they are allowed to subscribe to a local wind project and receive a credit on their utility bill according to how much energy their share of the project produces each month. Similar community renewable initiatives are underway in several states from New York to Oregon that engage diverse communities and create accessible pathways to clean energy ownership.
A statewide tax credit that enables farms and rural small businesses to invest simultaneously in renewable energy, energy efficiency, and their business enterprises – and expanding solar gardens to allow community shared wind projects to encourage local investment and reduce utility bills – are good policy choices for Minnesota.
I also encourage your support of legislation to expand the community solar garden financial model to allow Xcel Energy customers to buy into local wind projects.
Rural DG Tax Credit: The customers with the best land area resources available to host distributed renewable energy systems are located on rural electric lines and pay the highest electric rates. Minnesota’s 44 electric distribution cooperatives, serving 741,000 customer meters and covering 85% of the geographic area in the state, stand to benefit considerably from the state’s investment. DG systems help diversify our energy supply and relieve some of the burden on energy producers during peak energy times in the summer and winter. DG systems also avoid expensive transmission upgrades and projects that increase costs for all ratepayers.
Community Wind Gardens: Individual Xcel Energy customers, including those unable install their own wind turbines (i.e. renters and people in low wind areas), can help increase the amount of wind power in Minnesota if they are allowed to subscribe to a local wind project and receive a credit on their utility bill according to how much energy their share of the project produces each month. Similar community renewable initiatives are underway in several states from New York to Oregon that engage diverse communities and create accessible pathways to clean energy ownership.
A statewide tax credit that enables farms and rural small businesses to invest simultaneously in renewable energy, energy efficiency, and their business enterprises – and expanding solar gardens to allow community shared wind projects to encourage local investment and reduce utility bills – are good policy choices for Minnesota.
Why is this important?
HF 1455, recently introduced by Rep. David Bly (D) and Rep. Rod Hamilton (R), and SF 1657, introduced by Sen. Kevin Dahle (D), propose a state Rural Distributed Generation Tax Credit. The bills would provide farms and rural small businesses with a 30% tax credit on the capital and installation costs for small-scale wind turbines (up to 40 kW), solar thermal arrays, or geothermal heat exchangers.
Family farms and rural businesses are best poised to implement distributed generation renewable energy systems. These entities readily meet the spatial requirement, property line setbacks, permitted use, and accessory use definitions established in zoning codes and are also located away from natural gas lines. Livestock operations are among the large energy consumers in rural Minnesota as well. Electricity consumers in rural areas pay higher electricity rates and service charges than investor-owned ratepayers due to economics involved in servicing fewer customers per mile of electrical line.
The Rural Distributed Generation Tax Credit would reduce the cost of the investment to accelerate the payback and enable diversification of farm and rural small business income.
Community Wind Gardens would allow individual Xcel Energy utility customers to buy into a local wind project and receive a credit on their utility bill according to how much energy their share of the project produces each month. This would enable all customers, including those who can’t install their own wind turbine (i.e. renters and people in low wind areas), to invest in local wind projects and reduce their utility bills.
Please contact Minnesota legislators and ask them to support the Rural Distributed Generation Tax Credit and Wind Gardens!
Family farms and rural businesses are best poised to implement distributed generation renewable energy systems. These entities readily meet the spatial requirement, property line setbacks, permitted use, and accessory use definitions established in zoning codes and are also located away from natural gas lines. Livestock operations are among the large energy consumers in rural Minnesota as well. Electricity consumers in rural areas pay higher electricity rates and service charges than investor-owned ratepayers due to economics involved in servicing fewer customers per mile of electrical line.
The Rural Distributed Generation Tax Credit would reduce the cost of the investment to accelerate the payback and enable diversification of farm and rural small business income.
Community Wind Gardens would allow individual Xcel Energy utility customers to buy into a local wind project and receive a credit on their utility bill according to how much energy their share of the project produces each month. This would enable all customers, including those who can’t install their own wind turbine (i.e. renters and people in low wind areas), to invest in local wind projects and reduce their utility bills.
Please contact Minnesota legislators and ask them to support the Rural Distributed Generation Tax Credit and Wind Gardens!