This bill proposes significant changes to Minnesota's renewable energy policies by repealing the Renewable Development Account, sunsetting a utility’s solar production incentive program, and establishing new accounts for funding solar energy incentives.

Key provisions include:

1. Repeal of Renewable Development Account: The bill eliminates the Renewable Development Account, which previously funded renewable energy projects.
2. Continuation of Solar Energy Production Incentive Program: The bill extends the solar production incentive program for small solar energy systems (up to 40 kilowatts) through 2036, with funding allocated through a new mechanism.
3. Transition of Program Management: Until December 31, 2025, the utility company will manage the solar production incentive program. Starting January 1, 2026, the Minnesota Department of Commerce will take over.
4. Funding Structure:
   • Through 2025, funds for the incentive program come from amounts previously withheld from the Renewable Development Account.
   • Starting in 2026, a newly established Solar Energy Production Incentive Account in the state’s special revenue fund will be used to manage payments for the program.
   • The commissioner of commerce will manage this account, and from January 1, 2026, to December 31, 2036, it will be used solely for solar production incentives.
   • Any remaining funds as of December 31, 2036, will be returned to the state’s general fund.
5. Low-Income Solar Projects: A portion of future program funds is specifically reserved for low-income solar installations.
6. Phase-Out of Incentives:
   • Payments are limited to participants who begin receiving incentives by the end of 2026.
   • No new participants will be accepted starting January 1, 2027.
   • The program and funding account officially expire on April 1, 2037.

Overall, the bill restructures Minnesota's approach to solar energy incentives by phasing out direct utility management, shifting responsibility to the state, and eventually winding down the program entirely.