BACK HERE OR JUST WHAT'S GOING ON THERE?

♪♪ >> Eric: STATE LAWMAKERS HAVE BEEN LOOKING AT CHANGING SOLAR POWER INCENTIVES THIS SESSION.

AND THIS NEXT STORY INTERSECTS STATE LAW, ELECTRICAL CO-OPS, AND A STATE MANDATE FOR CLEAN ENERGY.

REPORTER KAOMI LEE WENT TO MEET WITH FARMERS IN RENVILLE COUNTY WHO HAVEN'T BEEN ABLE TO GET THEIR SOLAR PROJECT CONNECTED TO THE GRID.

>> LAST SUMMER, BROTHERS LARRY AND RALEIGH TRIED TO ELECTRIFY FARMING INTO THE FUTURE ONE SOLAR PANEL AT A TIME.

>> I THINK I HAVE IT 3 ITERATIONS OF THIS.

>> THEY DESIGNED AND BUILT THEIR OWN SOLAR ARRAY RIGHT IN ONE OF LARRY'S CORNFIELDS.

THE OLIVIA FARMERS AND INVENTORS HAD A VISION.

THEY WANTED TO PROVE SOLAR PANELS AND CONVENTIONAL CROPS COULD COEXIST AND THEY WANTED TO SHOW FARMING COULD BE DONE WITH FEWER FOSSIL FUELS.

THEY INVESTED MORE THAN $80,000 OF THEIR OWN MONEY, ND EVEN GOT U OF M RESEARCHERS ON BOARD.

BUT ALMOST THREE YEARS LATER, THEY'RE STILL NOT CONNECTED TO THE GRID.

>> WE CAME UP WITH THE CONCEPT FOR THIS PROJECT ALMOST THREE YEARS AGO.

MET WITH THE CO-OP AND THEY TRIED TO DISCOURAGE US RIGHT FROM THE GET-GO.

>> WE'RE A NOT FOR PROFIT ELECTRIC COOPERATIVE, AND WE HAVE A VERY THIN OPERATING MARGIN.

TO PUT THAT INTO PERSPECTIVE AT THE END OF 2024 THE YEAR WE JUST COMPLETED WE HAD A $54,000 OPERATING MARGIN.

>> WITH JUST 1500 MEMBER-OWNERS, IT'S THE SMALLEST ELECTRICAL CO-OP IN THE STATE.

>> WE'VE BEEN FULLY UPPORTIVE OF THAT PROJECT FROM THE BEGINNING.

IT COMES DOWN TO A DISAGREEMENT ABOUT WHAT WE COMMUNICATED WAS GOING TO BE THE COMPENSATION.

>> THE DISPUTE IS OVER SOMETHING CALLED NET METERING.

MOST FOLKS IN RURAL MINNESOTA GET THEIR ELECTRICITY FROM A NON-PROFIT ELECTRICAL COOPERATIVE LIKE RENVILLE-SIBLEY, THEY'RE OWNED BY THE MEMBERS AND MOST COOPERATIVES REGULATE THEIR OWN RATES.

NET METERING ALLOWS MEMBERS WHO INSTALL UP TO 40 KILOWATTS OF SOLAR O GET A BREAK ON THEIR BILL.

>> IF YOU INSTALL GENERATION LIKE OLAR ON YOU ARE YOUR PROPERTY YOU CAN USE THAT GENERATION TO OFFSET ANY PURCHASES OF ELECTRICITY FROM YOUR UTILITY AND SO IT'S JUST LIKE ROLLING THE METER BACKWARDS TO EFFECTIVELY REDUCE OR NET OUT YOUR ENERGY CONSUMPTION.

>> MINNESOTA WAS THE FIRST TO CODIFY NET METERING INTO LAW IN 1983.

TO GET MORE INDIVIDUALS TO INVEST IN SOLAR, IT ADDED A CARROT.

>> IF YOU END UP PRODUCING MORE THAN YOU CONSUME, NET METERING REQUIRES THE UTILITY TO PAY YOU FOR THAT CCESS GENERATION AT THE SAME RATE THAT YOU BUY ELECTRICITY FROM THAT UTILITY.

>> IT'S CALLED THE RETAIL RATE, AND FOR RENVILLE-SIBLEY CUSTOMERS, IT'S ABOUT TEN CENTS PER KILOWATT, THAT'S ABOUT THREE TIMES COSTLIER THAN BUYING IT WHOLESALE.

>> THIS IS A UNIQUE SITUATION WHERE WE HAD A MEMBER PUT SOLAR PANELS IN AN EMPTY FIELD WHERE THERE WASN'T AN EXISTING SERVICE, AND WE HAVE 36 MEMBERS WHO HAVE INSTALLED V.G.

WHERE THEY WERE OFFSETTING ENERGY.

>> ONCE YOU HAVE AN ELECTRICAL SERVICE YOU CAN INSTALL SOLAR.

IT'S NOT ABOUT YOUR INTENT.

>> AARON BUSSE IS ADVISING, HE'S INSTALLED SYSTEMS SINCE 2009.

HE SAYS HIS CLIENTS SATISFIED ALL THE REQUIREMENTS TO CONNECT TO THE GRID.

THE SOLAR WILL OFFSET POWER FROM AN E.V.

CHARGER AND A SHED.

HE SAYS THE CO-OP IS NOT FOLLOWING THE LAW.

>> FROM THE COST PERSPECTIVE I GET IT, MAYBE IT DOESN'T LOOK RIGHT.

IN THIS INSTANCE THEY ARE GOING TO BE USING THE POWER.

THERE'S JUST A LITTLE BIT OF EXCESS ONCE IN A WHILE THAT GOES BACK BUT THAT DOES HELP WITH THE COST OF THE PROJECT.

>> SOME SAY THE DECADES-OLD LAW NEEDS REVISING, AS SOLAR BECOMES MORE AFFORDABLE, MORE OF IT IS COMING ONLINE.

BUT IT'S NOT AVAILABLE AT NIGHT WHEN CO-OPS SAY IS THEIR PEAK DEMAND.

WITHOUT REFORM THEY SAY RATES WILL GO UP FOR ALL PAYERS.

>> NET METERING SAYS THEY MUST BUY THE EXCESS AT A RETAIL RATE AND THEY TURN AROUND AND SELL IT FOR RETAIL AND OF COURSE THAT'S NOT A BUSINESS MODEL ANYBODY CAN SUSTAIN.

>> OVERALL IT'S STILL A VERY SMALL FRACTION OF OUR OVERALL PICTURE BUT IN CERTAIN UTILITIES IT CAN ACTUALLY BE A BIG ENOUGH AMOUNT TO REALLY MATTER.

>> STATE LAWMAKERS ARE CONSIDERING NET METERING REFORM THIS SESSION.

DEMOCRAT STATE SENATOR NICK FRENTZ IS SPONSORING A BILL THAT WOULD REDUCE THE RATES THE CO-OPS HAVE TO PAY FOR EXCESS SOLAR.

FRENTZ IS ALSO CHAIR OF THE SENATE ENERGY, TILITIES, ENVIRONMENT AND CLIMATE COMMITTEE.

>> THIS LEGISLATION COME PRIMARILY FROM PEOPLE WHO SAY WE CAN HAVE SOLAR ENERGY FOR LESS.

>> REFORM HAS BIPARTISAN SUPPORT.

HOUSE REPUBLICANS ALSO SAY THE SUBSIDIES ARE TOO EXPENSIVE.

REPRESENTATIVE CHRIS SWEDZINSKI IS COCHAIR OF THE HOUSE ENERGY, FINANCE, AND POLICY OMMITTEE AND COSPONSOR OF THE HOUSE VERSION.

>> WE FEEL IT'S TIME TO STOP WITH THE MANDATES AND STOP WITH INCENTIVE PROGRAMS BECAUSE IT'S ALREADY A GROWN INDUSTRY, IT'S ALREADY MATURE, IT'S NOT LIKE A BABY BIRD BEING KICKED OUT OF THE NEST.

>> THE SOLAR INDUSTRY SAYS THE BILLS ARE JOBS KILLERS AND DISINCENTIVIZES INDIVIDUALS FROM INVESTING IN SOLAR.

>> CHANGING THAT FORMULA REALLY CHANGES HOW A MINNESOTAN IS GOING TO BE ABLE O PAY THAT SYSTEM OFF IN THE TIMELINE THAT THEY CAN DO SO.

>> THE BILLS ALSO SUNSET COMMUNITY SOLAR GARDENS.

THE STATE HAS A GOAL OF 100% CLEAN ENERGY BY 2040.

GABRIEL CHAN SAYS SMALL SCALE SOLAR WILL STILL BE NEEDED.

>> THE FASTER WE CAN MOVE THESE RESOURCES ONTO THE GRID IN A WAY THAT BENEFITS EVERYONE, THEN HE FASTER WE CAN MEET OUR CARBON GOALS ND THE MORE RELIABLE OUR SUPPLY WILL BE.

>> FOR THE ROUNDHURSTS, THEY MAY TAKE THEIR CASE TO COURT.

THEIR CO-OP WANTS THEM TO ACCEPT A RATE LOWER THAN RETAIL RATE.

>> THEY'VE ALLOWED IT FOR OTHER CASES BUT IN THIS CASE THEY JUST LOOK AT IT AS ALL YOU'RE GOING TO DO IS GENERATE