ROCHESTER , Minn.— For customers of Austin, Owatonna, and Rochester utilities, supporting the development of renewable energy generation in their communities is now easier. Austin Utilities (AU), Owatonna Public Utilities (OPU), and Rochester Public Utilities (RPU) have launched an innovative program that encourages the installation of solar electricity systems in their communities by making solar electricity cost-effective for their customers. The program is called SolarChoice and it relies on free-market supply and demand principles rather than rebates or tax incentives.

“Many people assume that Minnesota’s northern climate makes it an unsuitable location for solar energy systems. However, Minnesota receives almost the same solar radiation each year as Houston, Texas.” said Patty Hanson, the program manager.

Economics is the primary reason that more solar systems are not installed in Minnesota. SolarChoice closes this economic gap by connecting people that want to produce (the Producers) renewable energy with those people interested in promoting the development of renewable energy sources (the Purchasers).

Purchasers voluntarily pay a little extra on their utility bill each month. This additional money is kept in the SolarChoice Fund, and then passed on to the producers once a year according to the SolarChoice payment formula. Purchasers do not physically receive “green” electricity, but they are guaranteed that 100% of their contributions will be used to make incentive payments to the SolarChoice producers.

Any AU, OPU, or RPU electric customer may become a SolarChoice producer by installing a solar electric system and signing an agreement with the utility. The incentive payment a producer receives is proportional to the renewable energy they produce. For example, if a producer generates 5% of the renewable energy generated by all of the producers, they would receive 5% of the payments.