Efficiency and Renewables Incentive

Supported by the state's Renewable Development Fund, Minnesota offers a payment of 1.0¢ to 1.5¢ per kilowatt-hour (kWh) for electricity generated by hydro facilities and on-farm anaerobic manure methane digesters. This incentive is available to hydro facilities located at the site of a dam, if the dam was in existence as of March 31, 1994, and begins generating electricity after July 1, 1994 or generates electricity after substantial refurbishing of a facility that begins after July 1, 2001. In order to receive payments, qualifying hydro facilities must begin operation by December 31, 2011. Anaerobic digesters that produce electricity are eligible for payments from July 1, 2001 through December 31, 2017.

In May 2007, the REPI was amended to make the actual gas produced by on farm anaerobic digesters eligible to receive the incentive beginning July 1, 2007. In other words, it is no longer required that the gas be used to produce electricity. Minnesota also issues a payment of 1.0¢ to 1.5¢/kWh for electricity generated by new wind-energy projects less than two megawatts (MW) in capacity. However, the program was closed to new applicants on January 1, 2005 and the in-service deadline for wind incentives expired January 1, 2008. Approximately 225 MW of small wind facilities are subscribed in the program.