Owatonna Public Utilities - Solar Choice Program

September 17, 2007

Summary

Note: This program is presently suspended pending a restructuring of the incentive. Owatonna hopes to reintroduce the program in 2008 as a per KW rebate designed to reduce the up front cost of installing a PV system. Modeled after the successful Sustainable and Natural Alternative Power (SNAP) program in Chelan County, Washington, Owatonna Public Utility's Solar Choice program encourages customers to install photovoltaic solar arrays and connect them to their utilities' electrical distribution system by offering an incentive payment based on the system's production on a $/kWh basis. The amount paid by each participating utility to its solar energy producers depends on the total amount contributed by that utility's purchasers through their solar green pricing program. The greater the amount contributed by purchasers, the greater the amount that will be distributed among participating producers, up to a maximum of $1.00 per kWh. This amount is considered payment for the green attributes of the electricity only, and is additional to retail rates the producer may receive for their electricity under the state's net metering laws. Producers are compensated for the total electricity produced, not the total exported to the grid. The maximum generation project that may be interconnected with the distribution system is 40 kilowatts. Solar Choice is not for customers who want to install renewable energy sources for back-up power generation at their home or business. This program began on October 1, 2005. Actual rates paid to producers will be posted annually.