Stearns Electric building solar array

by Cori Hilsgen

news@thenewsleaders.com

Stearns Electric Association is building a 20-kilowatt community solar array at the St. Joseph branch office.

Communications specialist Amanda Groethe said construction of the 50 solar-panel array began the week of May 11.

She said the cooperative has been looking at the possibility of a community solar project for about three years and did considerable research about it.

Electricians will finish their work near the end of May and Stearns Electric hopes to go live with the panels after the electrical work is completed.

The solar array offers members an alternative, environmentally friendly option and allows them to directly receive the benefit of solar power without having to install individual panels on their own rooftops or worry about maintenance or repair costs.

Homeowners and renters who are cooperative members can lock in today’s electric rate for the community solar portion of their energy bill for the next 20 years.

Energy purchased from the project helps supply energy to the Stearns Electric distribution system. Even though it doesn’t directly power members’ homes, they will receive credit on their monthly energy bill based on the system’s output.

The maximum output members can purchase is limited by their average annual usage or five solar panels, whichever is less.

Each of the 410-watt panels will be about 6.5 feet by 4.5 feet and will stand about 5.5 feet off of the ground. Panels, which are manufactured by the Minnesota company tenKsolar, cost $1,300 per panel.

Monthly kilowatt-hours of the project will be metered and recorded monthly. Members who purchase the panels will receive an energy credit on their monthly bills for the next 20 years. The credit amount will be 1/50th (per panel purchased) of total monthly production of the 50-panel array. Solar credits will be calculated by the general service energy rate.

Estimated output per panel is 530 kilowatt-hours per year or about 44 kilowatt-hours per month. At that rate, it would compare to reducing a member’s monthly electric bill about $5/month. The amount will vary monthly and seasonally and the value of the kilowatt-hours is expected to increase as the cost of electricity increases.

Weather will affect solar production. During sunny days, the panels will produce more energy than they will on cloudy days. During winter months, limited sunlight hours and snow coverage will mean less production.

Since the system is interconnected with the electric grid, the output goes directly onto distribution wires. There is not a battery backup for the system, and it will not work in the event of a power outage.

Stearns Electric hopes to provide a website live feed showing real-time production of the array.

To participate in the solar array program, members must complete a Community Solar License Agreement form along with payment. The 20-year agreement will begin when the array is completed. Financing options are available.

Members are purchasing the rights to the output of a panel for the next 20 years – not the panel itself. Stearns Electric will provide the necessary insurance, maintenance and other costs. The cooperative will also ensure the array meets applicable codes, standards and regulatory requirements at the time of installation and throughout the agreement.

Solar subscriptions are on a first-come first-served basis as long as panels are available. As of May 20,  Groethe said 15 panels had been sold and more are in the process of being sold. She said they saw an immediate uptick in phone calls from interested members since April 23 when they announced they would be accepting purchases.

The panel output will move with members who move within a Stearns Electric service territory. If they move off the Stearns Electric system, they can transfer the panel output to another member. If members are unable to find someone to take over their panel output, a discounted buyout option will be available.

Groethe said members who choose not to participate will not see any change in their electric bill because of the project. The $1,300 per panel cost factors in Stearns Electric Association’s lost gross margin on each credited kilowatt hour.

“Because each member who pays $1,300 will receive an energy credit, Stearns Electric Association will lose some net revenue on that energy for 20 years,” Groethe said. “To avoid a subsidy from those who don’t buy a panel to those who do, the panel price includes that revenue loss. No everyone can afford $1,300 and those who can’t or choose not to purchase should not subsidize those who can. It keeps things fair.”

Stearns Electric serves almost 25,000 member owners in six Central Minnesota counties. For more information, visit the website stearnselectric.org or call 320-363-4630.