The Minnesota Value of Solar Study

Assessing the Full Benefits of Solar Energy

If you’re looking into solar in Minnesota, you’ll run into the term “Value of Solar,” or VOS. It’s a real methodology built into Minnesota law — not a sales pitch — that some utilities use to calculate what solar power is actually worth to the grid, and what they’ll pay you for the electricity your panels send back. Here’s the Minnesota Value of Solar methodology explained: where it came from, how it works, and why it matters for your bill.

Why is Solar Valuable?

VOS is a formula for putting a dollar value on what solar power is worth beyond just the electricity itself. Minnesota regulators, utilities, and energy experts worked it out together, with the goal of pricing in the economic, environmental, and social value that solar brings — not just the kilowatt-hours.

Minnesota passed the Value of Solar law in 2013, requiring utilities to use a transparent, standardized method for calculating what solar power is worth when they plan their systems and compensate solar owners for the electricity they send back to the grid.

How To Value Solar?

VOS looks at four main factors to arrive at that number:

• Energy Production: What your system actually generates, and what that electricity is worth on the market.
• Environmental Benefits: The value of the greenhouse gas emissions, air pollution, and other environmental impacts that solar avoids.
• Grid Benefits: The upside for the grid itself — less strain on infrastructure, better resilience, and fewer losses from transmitting power over long distances.
• Socioeconomic Factors: The economic development, local jobs, and community benefits tied to the solar industry.

In practice, not every Minnesota utility uses this exact formula to pay solar owners — some use simpler net metering instead, where you get credited close to one-for-one for the power you send back. If your utility does use VOS, this combined number is what sets the rate you’re paid per kilowatt-hour for what your panels send to the grid. It’s worth asking your utility directly which method they use before you sign anything.

How Much Value does Solar Add?

Solar doesn’t just add value to your home — it adds value to the neighborhood and the grid for all the reasons above. Zillow has found that homes with solar sell for 4.1% more than homes without, on average.

Widespread Impact of a Local Decision

Having a real number for what solar is worth helps Minnesota utilities and regulators plan for more solar on the grid instead of guessing. It also gives solar owners something concrete to point to — a documented, state-vetted method behind their compensation, not just whatever rate a utility decides to offer.

Minnesota was one of the first states to build this kind of framework, and other states have looked at it as a model for their own solar policy since.

None of this changes what you’ll pay for a system — it changes what you get paid once it’s on your roof and producing. If you want to know whether your utility uses VOS, net metering, or something else, ask us when we come out for a quote. We’ll walk you through exactly how your compensation works before you sign anything.

If you want to dig into the technical details, the link above has the original state methodology.