Minnesota utility regulators' decision to cap the size of community solar gardens has been upheld by a state appellate court, which shot down a challenge by solar developer Sunrise Energy Ventures.
The Minnesota Public Utilities Commission (PUC) a year ago limited developers like Sunrise to clusters of five community solar gardens, each with a maximum output of 1 megawatt. In essence, a community solar site would max out at 5 megawatts, while Sunrise and some other companies had planned for far more power.
The PUC acted on Xcel Energy's complaint that it had been flooded with proposals for large solar gardens that were bigger than intended by state law. Sunrise, which is partnering in Minnesota with solar industry heavyweight SolarCity, challenged the PUC's ruling before the Minnesota Court of Appeals.
In a decision released this week, the appeals court ruled that the PUC didn't — as Sunrise claimed — engage in unlawful, retroactive and capricious rule making.
"In light of the overwhelming response to Xcel's [Community Solar Garden] program, we concluded that the PUC made lawful and reasonable fact-specific determinations under the circumstances," Judge Jill Flaskamp Halbrooks wrote in an opinion.
Dean Leischow, managing director of Minnetonka-based Sunrise Energy, called the appeals court ruling "ridiculous."
The company hasn't decided whether to appeal to the Minnesota Supreme Court. Sunrise and some other developers have significantly scaled back their projects because of the PUC ruling.
"Xcel has conjured up a sort of Norman Rockwell version of community solar," Leischow said regarding the size limitations for solar gardens.