There’s a MN solar energy company, Novel, that supplies energy to the local electric company.
Talked to them today.
Basically they take over paying your electric bill and then they bill me at a 10% discount. The have a local solar farm you rent a chunk of it or at least reserve a chunk to suit your electric needs.
Seems legit and saving 10% on my current electric bill sounds great.
Anybody heard of it or a subscriber to it already?
Seems to good to be true! My electric company now penalize for the amount you use, used to be about $35 facilities charge, now it’s based on amount you use. Last month facilities charge was $90!!! On top of my higher price per kilowatt! We are paying for those solar credits some how!!
Is there an initial investment you have to make to buy into the community solar garden? I work for a utility and am familiar with the community solar garden concept, but a straight 10% savings seems too good to be true without a large upfront investment. Usually it takes several years of “savings” to come out ahead on the initial investment.
There is no initial investment required upfront. You don’t really “buy” anything.
Still researching but the potential savings is 10% but may be less. Still looking into why it “may” be less.
Xcel Energy even has the information, a lot of it, linked to their website.
Also this Novel Energy Solutions seems to have legit information out there.
I haven’t found any negatives…yet.
I know the spots for subscribing are limited as each solar garden only has so many panels. Once filled and they seem to fill fast, you would need to wait for the next garden to be operational to subscribe.
There’s a ton of info to sift though so hoping someone smarter than myself has more information on it.
I’m subscribed to a solar conglomerate in Wright County (St. Michael). Been involved for about a year. It has been really smooth and seems a fair reduction in costs.
Dan
Seems to good to be true! My electric company now penalize for the amount you use, used to be about $35 facilities charge, now it’s based on amount you use. Last month facilities charge was $90!!! On top of my higher price per kilowatt! We are paying for those solar credits some how!!
yep, someone has to pay for the subsidizes. Hope the figure in the cost of disposable of the solar panels 30 years down the road when there toast and considered a hazardous waste.
<div class=”d4p-bbt-quote-title”>gregory wrote:</div>
Seems to good to be true! My electric company now penalize for the amount you use, used to be about $35 facilities charge, now it’s based on amount you use. Last month facilities charge was $90!!! On top of my higher price per kilowatt! We are paying for those solar credits some how!!yep, someone has to pay for the subsidizes. Hope the figure in the cost of disposable of the solar panels 30 years down the road when there toast and considered a hazardous waste.
Yup. But I believe that nightmare is going to be on the landowner…..
Interesting. For the few systems I’ve priced out here for residential new homes when the government had tax incentives, recovery times were averaging about 12 to 15 years. Equipment was estimated to have a 20-25 year life expectancy.
The contract with the local electric utility was simple, they bought 100% of all power produced and sold back to you at a very reduced rate. On a perfect day, you could out produce your consumption. But from the feedback I received, that was only a limited number of days.
Most common was to just be close. Now, that is comparing rooftop or a unit in the yard. So theoretically if a solar garden over produces and hills you 90% of your bull, I’ll guess they are making 25-35% ROI. Not a bad investment
This a little different. It’s meant for people who can’t or don’t want to have their own panels. Be it no land or don’t want panels on their roof.
They provide the solar panel farm and you reserve enuf panels to cover your current use plus 20% to cover additional if needed. Think electric car.
But yet you aren’t charged extra instead get an approx. 10% discount to use their solar power supply.
Not sure I understand why they don’t sell all the power generated back to the power company and profit from it?
Not sure I understand why they don’t sell all the power generated back to the power company and profit from it?
I’m sure they do
I remember getting stuff in the mail for this a few years back in Rochester. So you get 10% your bill and how much does it cost you and for how many years is the contract?
Not sure I understand why they don’t sell all the power generated back to the power company and profit from it?
I am not an expert and cant say I have seen any of the exact contracts but I believe they do the community solar agreements to get around the regulations of becoming a power producing plant that need to go thru the PUC and many other complex steps. Rather they sell the power to you in small commodities and don’t have as much regulation/red tape to deal with.
It doesn’t cost anything.
The contract doesn’t end but you can cancel and takes 60 days. For them to find a new customer to take your reserved panels.
CBMN is probably on to the key. They may even get to take a tax credit.
Xcel has to go renewable resource by 2058 so it makes sense to get users switched now.
Really, it makes sense.
Think I’ll go for it and report back after a couple months of bills.
Seems like a no brainer.
I guess if it’s free why wouldn’t you? maybe give exel a call and make sure it’s all legit and that your bill will get paid
Somewhat off topic, but we are on our third separate company trying to get us to “lease” them land for a solar garden. All 3 proposed contracts have been unique but also had similar language. None of the 3 contracts dealt with disposal at the end of the contract other than requiring bonded money on behalf of the landowner. I countered one proposal and told them we’d be interested if they fronted $100k in secured funds to be used exclusively for disposal at the end of the 25 year contract. They offered $25k. I laughed and told them to never stop by again. They tried to tell us that disposal would likely be accomplished for under $50k. How could they even begin to estimate that cost 25 years from now?!? Sadly some people in the area are signing these contracts one after another without the slightest idea what will happen down the road (or for their kids). I think we will see a lot of inheritances eaten up in our area disposing of these things if more recyclable components are not used.
I guess if it’s free why wouldn’t you? maybe give exel a call and make sure it’s all legit and that your bill will get paid
yeah, i would definitely find a phone number and talk to somebody at the company. Have your questions wrote down so you can stay on track and not get distracted if the conversation tends to wander. I find it easier to talk to a human than try to decipher the complexities of things like this through reading online. I read all that i can, then talk to a human. Use both sources to form your decision.
<div class=”d4p-bbt-quote-title”>gregory wrote:</div>
Seems to good to be true! My electric company now penalize for the amount you use, used to be about $35 facilities charge, now it’s based on amount you use. Last month facilities charge was $90!!! On top of my higher price per kilowatt! We are paying for those solar credits some how!!yep, someone has to pay for the subsidizes. Hope the figure in the cost of disposable of the solar panels 30 years down the road when there toast and considered a hazardous waste.
You mean those aren’t free like the oil and gas industry subsidies?
You mean those aren’t free like the oil and gas industry subsidies?
Brent, could you explain those subsidies that the oil and gas industries get in detail? I always hear that argument but nobody can give me a good example. I’ve researched it and yes, there are special deprecation considerations, most business’s do get tax credits for investments and depreciation. My neighbor is considering putting solar shingles on his roof. There is a substantial direct tax credit for installing. Once operating the power company is required to buy the electricity generated at the same price as they are charging, say $0.10/KW. The power company essentially loses a customer then instead of buying on the wholesale market has to buy back at essentially no potential of profit, so the power company eventually has to go to the Public Utilities Commission and ask for a rate increase to all it’s customers which includes everyone. What if 50% of their customers decide to install solar. How does that work out. Electricity will eventually be just like gasoline. $0.50 – $0.60/kw.
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