This article is only for customers in a solar garden that is part of the Minnesota Applicable Retail Rate (ARR) program.
As your community solar provider, we want to make sure you understand an upcoming change to how your bill credits will appear on your Xcel Energy bill. This change by Xcel Energy applies to older solar gardens in the Applicable Retail Rate (ARR) program.
What’s changing?
Beginning April 1, 2025, the credit you receive on your Xcel Energy bill will change from the Applicable Retail Rate (ARR) bill-credit method to the 2017 Value of Solar (VOS) bill-credit method. As a result, the bill credit will decrease from $0.17789 per kWh in 2024 to $0.15125 per kWh for energy produced after April 1, 2025. This new bill credit will be reflected in the bill you receive in May 2025.
When will I see the change?
The new VOS bill-credit method will apply to energy produced beginning April 1, 2025, and will appear on your May 2025 Xcel Energy bill.
Can I opt out or avoid this change?
No. This is a transition by Xcel Energy and applies to all solar gardens operating under the original ARR framework.
Why is this happening?
Despite strong opposition from community solar providers, advocacy groups, and hundreds of public commenters, Xcel Energy’s request to transition legacy solar garden bill credits from ARR to the VOS was approved.
How will this affect my savings?
Your monthly bill credit will decrease starting in April 2025. Xcel Energy’s change is expected to reduce the total credits received by ARR subscribers by approximately $41 million annually, statewide. While the amount of your credit will change, your subscription will continue to provide savings.
Will I still benefit from my subscription?
Yes. While the bill credit rate is lower than in 2024, you will continue to receive value from your subscription. The structure of the program still enables subscribers to save on their electricity costs.
Why should I stay subscribed?
Community solar remains one of the most accessible ways to:
· Lower your electricity costs without installing panels
· Support local clean energy development
· Participate in Minnesota’s clean energy transition
What should I do next?
· Watch for the updated credit amount on your May 2025 utility bill.
· Reach out to us with any questions—we’re here to help.
We understand that changes to your bill credit can raise questions, and we’re committed to keeping you informed. Thank you for being part of Minnesota’s community solar program and for your continued support of local renewable energy.