SolarCity Corp., the nation's largest installer of residential solar panels, says it will invest $200 million in Minnesota to build its first community solar gardens, and hopes to sell much of their electric output to apartment dwellers who have been left out of the rooftop solar market.
The company, based in San Mateo, Calif., said it signed a deal with Sunrise Energy Ventures of Minnetonka to construct 100 Minnesota solar gardens that offer subscribers clean energy at favorable prices. SolarCity would build, own and operate the solar gardens, which would be built on land on the fringe of the Twin Cities.
It is the first shared-solar offering — and a fresh direction — for a company that invented the concept of financing, installing and maintaining solar panels on residential and business properties. In 2014, according to GTM Research, SolarCity installed more than one-third of U.S. residential solar panels, although Minnesota isn't one of 18 states where the company has operated.
SolarCity CEO and co-founder Lyndon Rive said solar gardens are ideal for renters. To reach them, he said, the company will offer streamlined signup, a one-year-only commitment and savings of 10 percent to 15 percent off their electric bills with Xcel Energy, the state's largest power company.
"It enables us to provide clean, cheaper energy to renters," Rive said in an interview Tuesday about the company's solar garden launch. "The product will be available … to schools, hospitals, businesses and homeowners, but ideally we will get as many renters as possible."
Others have corporate focus
SolarCity isn't the only large solar company to enter the Minnesota market to build solar gardens under a 2013 state law that authorizes them for Xcel's 1.2 million electric customers. But some other large companies, including SunEdison, based in Belmont, Calif., and SoCore Energy of Chicago, have focused on signing up large corporate and institutional solar subscribers. By contrast, SolarCity wants a slice of the residential market, though it is not alone.
SunShare, a Denver-based pioneer in developing shared solar, also announced Tuesday that it hopes to sign up 5,000 residential customers for its Minnesota solar gardens by December. Just last week, the city of Cologne said it signed a deal with SunShare to offset all its municipal electricity with solar power, the first Minnesota city to go all solar.
Dispute with Xcel
Solar garden developers are hoping to get projects built in 2016, the last year of a 30 percent federal solar investment tax credit. But first they need to get solar gardens started, and that's being held up partly by a regulatory dispute with Xcel.