More states authorizing local governments to provide loans for small-scale renewable energy projects

In collaboration with Amanda Zidek-Vanega (DSIRE)

A growing number of states have adopted a policy that encourages development of renewable energy and energy efficiency projects: Property Tax Financing Authorization. The concept began in Colorado and California and has now gained momentum in a number of other states.

2007 was a landmark year for energy policy in Minnesota. The legislature passed the strongest renewable energy standard in the nation with overwhelming support from both sides of the aisle. This law makes Minnesota a leader in clean energy policy and creates a great opportunity for our state to reap the rewards of the booming renewable energy industry. With the passage of The Next Generation Energy Act of 2007, the legislature made sure much of the economic benefits of the increased renewable energy would stay in our rural communities.

Minnesota’s original (2005) Community-Based Energy Development (C-BED) legislation offers some important benefits to community wind projects, but understanding how it works can be a little challenging. This article will try to explain the major aspects of the C-BED program and illustrate how community projects are helped with a simple example.

Interconnection is the process of hooking your wind electricity generator into the larger electricity grid.

Interconnection standards and policies vary from state to state, and can have a large impact on the economics and feasibility of wind projects.

Net metering is a way for you to connect your small wind turbine behind the meter at your home, business or farm.  This system is designed to allow energy generated at your home farm or business to offset some or all of the electricity you use.  If your generator is producing more electricity than you can consume the excess is sold back to the utility.  The price that a project receives for the excess electricity varies from state to state and from utility to utility.

Many states have property tax incentives for wind energy.

Look for more information on the DSIRE web site.

Fourteen states exempt wind energy equipment from sales taxes.

Look for more information on the DSIRE web site.

Sixteen states have established clean energy funds to promote renewable energy and clean energy technologies.

These states are:

Renewable Electricity Standards (also called Renewable Portfolio Standards) are among the stronger policies used today by states seeking to encourage renewable energy development.