Wind energy production taxes boost Minnesota county coffers; solar energy production taxes bump local revenues, too

Mower County and 26 other Minnesota counties will receive about $12.7 million in wind energy production taxes this year, according to figures from the Minnesota Department of Revenue. Mower County is the state’s top recipient of wind tax revenue and will receive nearly $2.4 million this year based on the 2017 electricity generation of wind farms in the county. Jackson County will receive the second most at $2.2 million. Other counties receiving at least $1 million include Murray ($1.3 million), Nobles ($1.1 million), and Lincoln ($1.1 million).

Mower County was the leading wind energy producer in Minnesota for 2017 with 2,018 million kilowatt hours, and it is grateful for the positive economic impact of wind energy. The development of large wind farms in this southeastern county has been embraced by most in the community, according to Tim Gabrielson, a commissioner on the Mower County Board of Commissioners.

“In addition to the production tax revenue, wind farms are creating jobs and providing income for landowners who lease their land to wind developers,” said Gabrielson. “It’s also great that wind provides a clean alternative to electricity generated by fossil fuels, so wind is good for our environment and good for health reasons."

Gabrielson said the county normally puts all of its wind production tax revenue into a general fund to keep the tax levy down. But last year it decided that $400,000 from the Pleasant Valley wind farm would be designated for improving roads and bridges this year.

Since 2008, Mower County has received about $17 million from wind production taxes. Over that same 11-year period, Minnesota counties have received about $90 million overall. Wind energy is good for the economy and helps achieve the state’s clean energy goals, said Gabrielson. “It’s really been a win-win for our community.”

In 2017, Minnesota ranked seventh in the nation for wind as a share of total in-state electricity generation, with 18.2% (3,509 MW) of Minnesota’s electricity coming from wind. In 2007, just 4.8% of the state’s electricity was generated by wind.

More than 1 gigawatt of new Minnesota wind energy planned for next 3 years
No new large wind farms are planned for Mower County, but a number of big wind projects are planned or in the works, including: two new 200-MW wind farms in Lincoln County for completion by 2020; a 200-MW wind farm in Dodge County for completion in 2020; a 250-MW wind farm in Nobles County for 2019; a 150-MW wind farm for Yellow Medicine County by 2019; and 84 MW of new wind in Freeborn County as part of a 200-MW wind farm that stretches into Iowa, to be completed by 2020.

Read more on how wind farms are growing local tax bases nationwide in a Moody’s Investors Service report.

Chisago County is top solar energy production tax recipient
The proliferation of large utility-scale solar farms and community solar gardens in the last two years has bolstered the economies of at least 30 Minnesota counties. Chisago County, home to the 100-MW North Star Solar project, will receive $314,000 in solar energy production tax revenue this year based on 262,000 MWh of production in 2017. According to the Department of Revenue, Lyon County at $135,000 and Stearns County at $125,000 were right behind Chisago as Minnesota’s leading solar tax revenue counties. Similar to wind, landowners who lease their land to solar developers are increasing their incomes.

Solar News

California to require solar on all new homes starting in 2020

The California Energy Commission approved the 2019 Building Energy Code on May 9, requiring renewable energy access for all new residential homes in the state starting in 2020. The code includes incentives for energy storage while mandating that the construction of new homes include advanced energy efficiency measures and rooftop solar. The mandate could require between 68 and 241 MW of annual distributed solar buildout. This historic revision of building energy codes ensures a large investment in residential rooftop solar and energy efficiency as California pursues its mandate of getting 50% of its energy from renewables by 2030. Read more.

SEPA issues community solar garden report

The total installed capacity of community solar programs in the United States has expanded to 734 megawatts (MW), with approximately 387 MW of that being installed in 2017, according to a community solar gardens report by the Smart Electric Power Alliance (SEPA). Minnesota is the nation’s leader in electricity generated by community solar gardens, with 287 MW as the end of 2017. SEPA has researched and catalogued community solar programs since 2010 and has collected an extensive database on every launched program and publicly announced program. Access the report: “Community Solar Program Design Models” (pdf). Also from SEPA, see “Financial Community-Based Solar Projects: Case Studies from the Field.”