received more than $133 Million since 2004;
Solar Contributing 11.5% in 2020
SAINT PAUL, MINN. (May 13, 2021) – The
Minnesota Department of Revenue Property Tax Division recently updated its
report on the amount of wind and solar production tax revenue paid to Minnesota
counties that host renewable energy developments. This year, 54 counties,
representing 62 percent of the state, will receive payments from wind and solar
projects totaling $16,031,859 in production tax revenue, with $14,185,507
coming from wind projects. Solar production taxes totaled $1,846,352 for 2020,
representing 11.5 percent of all production tax revenue in the state.
Since 2004, the combined total of wind production
tax payments is $133,941,615, with and additional $5.5 million coming from
solar projects over the past five years. These taxes are paid to the state,
which then funnels them back to the counties that host the projects. Eleven
counties will receive tax payments from both wind and solar projects sited
within their county.
Lincoln County now ranks first in the state as
the county that will receive the largest amount of revenue coming from wind,
surpassing Mower County. This year, Lincoln County will receive over $2.5
million, compared to $1.8 million in 2020, a 37 percent increase. Mower County ranks second in the state with
$2.097 million in wind production tax revenue.
Jackson County rounds out the top three with $1.8 million.
“The growth of utility-scale solar in
Minnesota is clearly revealed in the dramatic increase in the production tax
payments being distributed, and the number of counties that are hosting solar
projects,” said Clean Grid Alliance Executive Director Beth Soholt. Production
tax payments to counties hosting solar projects has increased 31 percent since
2019, and 139 percent since 2018. Minnesota now has 38 counties that have solar
installments, with Chisago County hosting the largest development in the state.
This year, Chisago County will receive $351,557 from production tax payments. “These
projects translate into real dollars and make a real positive impact on small
communities that might otherwise struggle to pay for investments into their
communities without overtaxing their residents. More opportunities for
communities to benefit from the growth of solar energy is on the way.” There are 2,836 megawatts of solar being
planned in Minnesota; and Xcel Energy recently announced a proposal to build a
460 megawatt solar project in Becker, which would make it the largest solar
project in the state.
According to the American Clean Power
Association, Minnesota ranks eighth in the
nation for its 5,363 megawatts of operating wind, solar and energy storage
capacity. Wind, solar and energy storage plants provide 21 percent of all
electricity produced in the state, and contributed $10 billion in capital
investment. Minnesota landowners also received $32.9 million in land lease
payments in 2020, which helps drive economic development.
Nationally, clean power projects provided
lease payments to landowners of $1.1 billion in 2020; $1.5 billion in property,
state, and local taxes to communities; and contributed $323 billion in capital
# # #
Grid Alliance (CGA) is a 501(c)(3) nonprofit organization based in St.
Paul, Minn., whose mission is to advance renewable energy in the Midwest.
Launched in 2001, CGA has been an active stakeholder in the MISO process at the
state and regional levels and a leading organization working on transforming
state energy policy. CGA’s membership includes industry representatives working
in wind, solar and storage as well as environmental nonprofit organizations,
public interest groups, clean energy advocates, farm groups, and businesses
providing goods and services to the renewable energy industry who come together
to reduce carbon and deliver a renewable energy future. Learn more at cleangridalliance.org.