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Combined Heat and Power Partnership

Minnesota Net-Metering Rules

Date Last Updated5/15/2013
Policy TypeNet-Metering Policy
Policy Administrator/Contact OfficeMinnesota Department of Commerce, State Energy Office
Policy Initiation Date6/15/1983
Policy SummaryMinnesota enacted its net-metering law, which applies to CHP, in 1983. Net-metering applies to all investor-owned utilities, municipal utilities and electric cooperatives. All "qualifying facilities" <40 kW in capacity are eligible. A "qualifying facility" is defined in the Public Utility Regulatory Policies Act of 1978 (PURPA) and generally includes most renewable-energy and CHP systems. There is no limit on aggregate statewide net-metering capacity. Each utility is required to compensate customers for any net excess generation (NEG) at the "average retail utility energy rate," defined as "the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales." This rate is basically the same as a utility's retail rate.
CHP Eligibility RequirementsBoth fossil-fueled and renewably-fueled CHP systems are eligible for net-metering.
Eligible Project Size (MW)Systems <40 kW are eligible to net-meter.
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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