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126 Mr. Ross reviewed the three typical public sector opportunities or options: <br />127 installations on public property (either self -financed, installation only, <br />128 lease/buyback, or with a purchase power agreement); by enabling the private <br />129 sector to develop community solar systems by removing regulatory barriers <br />130 and/or creating regulatory incentives, participation in PACE or other financing <br />131 options; or by sponsoring a community solar installation, which is an available <br />132 option, but not yet done in MN even though there are several projects in their <br />133 initial states of analysis. <br />134 <br />135 At the request of Chair Stenlund, Mr. Ross advised that if using a financial option, <br />136 such as PACE, it would be beneficial to have a project in mind for an idea of total <br />137 dollars needed, with several of the projects currently under joint powers <br />138 agreements (JPA's) with the St. Paul Port Authority. <br />139 <br />140 Mr. Ross reviewed some of the considerations for solar installations on buildings, <br />141 including solar resources, roof age, roof structure, and interconnection with <br />142 substation or distribution line depending on size. For ground "solar farm" <br />143 installations, Mr. Ross reviewed some of those considerations, including solar <br />144 resources (e.g. trees, topography), surrounding land uses (important for larger <br />145 systems), potential future uses for adjacent land (aesthetics impacts to adjacent <br />146 neighborhood), and again interconnection needs. <br />147 <br />148 At the request of Mr. Schwartz, Mr. Ross addressed the feasibility of community <br />149 solar systems over parking lots, noting that while it may look like a huge <br />150 opportunity and potential asset, only a few have been done to -date on a small <br />151 scale. Mr. Ross advised that part of the problem was that when done over a <br />152 parking lot, the design of the structure had to be engineered to ensure if a car hit <br />153 them, it wouldn't impact the solar array or that the supporting structure itself <br />154 wouldn't create a problem with traffic flow — all requiring more expensive design <br />155 and engineering specifications and construction. <br />156 <br />157 Discussion ensued regarding benefits and considerations under tariff rates, of <br />158 which there are nine different rates, for community solar systems within the <br />159 residential, commercial, and industrial rate structure; along with renewable energy <br />160 credits versus standard electricity rates. Mr. Ross noted that utility companies <br />161 would soon be mandated to provide a certain percentage of solar power by 2020 <br />162 under the tariff and renewal energy credit. Mr. Ross further noted that the <br />163 minimum a utility company must achieve is 1.5%, with Xcel Energy already <br />164 having added two large projects to their system, so they would be half way to the <br />165 mandated goal once they were installed. However, if more than that comes to <br />166 fruition, and the market supports the additional solar project development, Mr. <br />167 Ross opined that the utility companies have to accept them into their system. <br />168 <br />169 Mr. Ross noted there were benefits of community solar system models for <br />170 businesses who want to invest in solar, if the system is installed on the roof, they <br />171 pay energy and demand charges, but solar systems interact differently and don't <br />Page 4 of 15 <br />