Community solar builders decry Xcel Energy delays in activating solar panels

Snow covered rows of solar panels on the roof of Minneapolis' North High School on a mid-December day, but there was no need to brush it off: the panels haven't been connected to the power grid since they were installed two years ago.

When finally operational, the 365-kilowatt North High community solar garden will produce energy credits for the school and 47 homes. But officials with Minneapolis Climate Action, the nonprofit that built the garden, say they're increasingly frustrated by how long it's taking Xcel Energy to connect the panels that were installed in December 2020.

"There's a reasonable amount of time after panels are installed. Two years is not reasonable; it's ridiculous," said Executive Director Kyle Samejima.

Minnesota's community solar garden program has been a significant factor in generating renewable energy since it was established in 2013. The program, providing a middle ground between household rooftop and large utility-built projects, exploded in popularity for business and government clients looking to save on energy costs and reduce their carbon footprint.

But experts say Minnesota's program has underserved residential customers in working class, diverse neighborhoods, like those expecting to reap the benefits from the North High School project. According to leaders in the field, Xcel Energy, the state's largest utility provider, has been slow to connect such projects to its power grid, delaying environmental benefits and cost savings.

When contacted about the complaints, Xcel Energy touted the role that community solar plays in the company's goal of providing 100% carbon-free electricity by 2050. But utility officials declined an interview request, instead issuing a statement saying Xcel has connected "thousands" of projects across the state smoothly and that it expects the North High project to be connected "in the next few months."

"We understand that delays can be frustrating to communities who are eager to embrace renewable energy," Xcel said in the statement.

Some critics say Xcel is not financially motivated to activate solar panels built by outside parties that the utility won't profit from.

"It doesn't fit the business model for these for-profit utilities to have residential or community solar hooked up to the grid," said Pouya Najmaie, policy director for Cooperative Energy Futures, a leader in residential community solar in Minnesota.

Cooperative Energy Futures is lobbying lawmakers to make changes in Minnesota's community solar program in the 2023 legislative session. A 2022 version of a bill introduced in recent sessions didn't stipulate new grid connection procedures, but Najmaie said he was hopeful the Democratic-controlled House, Senate and governor's office will approve changes that take control out of Xcel Energy's hands.

Community solar supplies direct energy credits to customers, with solar arrays typically ranging from one to five megawatts. One megawatt takes up about 10 acres, but smaller urban projects can be installed on rooftops.

Customers typically subscribe to solar arrays to cover 100% of their energy use, and most will save a small amount of money each year on standard energy bills. Credits stored up in the summer often net a profit for people on their energy bill, which can help cover bills in the less solar-friendly winters.

The Minnesota program is unique because it doesn't place restrictions on how much community solar can be built, according to the institute's John Farrell. The program's main issue is relying on Xcel Energy to connect projects to the electrical grid, he said, because the utility controls the process to activate a completed solar project. It determines what testing is required, sets the dates for appointments and establishes deadlines for activating the project.

That's been a problem for several solar garden builders, who complain that Xcel frequently takes as long as possible to activate their projects. "One of the biggest things is the lack of accountability on Xcel's side," Najmaie said.

Cooperative Energy Futures, which operates eight community solar gardens in Minnesota and is planning seven more, is working on a one-megawatt solar garden on the roof of a new Allina Health building in south Minneapolis. The project is about a year behind because Xcel Energy has delayed key studies required to connect the project to the grid, according to Bruce Konewko, operations director for Cooperative Energy Futures. The average process takes 18 to 24 months, but he said it could easily be reduced by six months to a year.

Konewko recalled a project where Xcel personnel arrived on site on an overcast day but wouldn't wait five minutes for a cloud to pass so they could test the system. Instead, they left and rescheduled for weeks later.

"They're still slow-walking everything," he said.