Minnesota legislators are considering new policies that could make the state one of the most aggressive solar energy markets in the country.

“I’m pretty sure we’re the only state looking at ‘value of solar rates’ on a statewide level,” said Lynn Hinkle, director of policy development for the Minnesota Solar Energy Industries Association.

Value of solar requires utilities to calculate what they pay for solar as a rate rather than an incentive and makes them factor in cost savings on things like transmission and infrastructure expenses. That typically makes the rate for solar come out higher than the standard retail rate.

Austin, Texas has a “value of solar” program that places the cost of solar to the utility at 12.8 cents per kilowatt hour, Hinkle said. And the average retail rate there is about 10 cents, he said.

Hinkle said his trade organization along with several other groups lobbied for similar legislation in 2010 and didn’t succeed.

“Now the democrats have taken over control of both houses and we’re moving,” Hinkle said. “We don’t feel like our message is dependent on who is in the majority though. It just looks like this message resonates with more people now than it did three years ago.”

There is similar legislation moving through committees in both the Minnesota House and Senate. It’s hard to say right now where the hard numbers might end up. But Hinkle suspects proposed legislation to require investor-owned utilities to get 4 percent of their energy from solar by 2025 could be successful. Under that proposal, municipal utilities will have to achieve half what the for-profit utilities are required to do.

The value of solar is a key component of the bills, Hinkle said. And it would essentially be a production-based incentive that would only pay out as long as the solar panels are producing.

All of the proposed legislation also includes incentives for manufacturers to move to Minnesota.

“The goal is to create a made in Minnesota incentive that isn’t going to close the market,” Hinkle said. “We want to create an opening to attract new module manufacturers to the state.”

There will also be some stipulation to allow community solar gardens and make it easy for them to set up in the state.

“This is really a jobs program,” Hinkle said. “We don’t have any energy in Minnesota. We don’t have any oil or natural gas or even any coal – none – not a sliver. All of our energy money right now is shipped out of state.”