PSD24 Solar (Various Locations)

Project Details:

Project Start Date: 2021

Ongoing Program: Yes

Submitting Department: Finance & Property Services

Contact Person: Brian Millberg

Level of Need: Significant

Estimated Project Completion Date: 12/31/2027

Department Priority: High

Contact Phone Number: 612-816-2390

Website: N/A

Project Location:

Address: Various City Owned Assets

City Sector:Across the City

Affected Neighborhoods: Across the City

Affected Wards: All Wards

Description of Location

Project Description:

This Project will plan, design, and construct

behind the meter solar photovoltaic arrays on

City built assets between 2022 and 2027.

Purpose and Justification:

The City Council has declared a climate

emergency (Action 2019-01362) and

implemented a plan to have all of the electricity

used for City municipal operations be 100%

renewably generated (Action 2017-01275).

To reach the 100% renewable goal, as much

electricity as possible needs to be generated at

City-owned buildings. This project adds an

additional 2.6 million kWh annually to the

current 0.9 million kWh annually generated from

rooftop arrays on City-owned buildings,

providing approximately 5% of the total electrical

needs for municipal operations in 2027.

Project Cost Breakdown

Department Funding Request


Have Grants for this Project been secured?

Grants or other non-City funding has not been

secured for this project.

Describe status and timing details of secured or applied for grants or other non-City funding sources:


Describe any collaborative arrangements with outside project partners, including who they are and what their role is with the project:



State Law Chapter 462.356 (Subd. 2) requires review of all capital improvements for compliance with the comprehensive municipal plan. Chapter 13, Section 4 of the City Charter requires Location and Design Review for the purpose of approving the sale of bonds for these projects.

Policy 5.4 Enhance the safety, appearance, and effectiveness of the city's Infrastructure.

Policy 6.1: Integrate environmental, social and economic goals into decision-making processes at all levels.

6.1.1 Increase usage of renewable energy systems

consistent with adopted city policy.

6.1.2 Promote efficient use of natural and limited resources when renovating, constructing or operating city facilities and in general city operations.

6.1.4 Invest in energy efficient heating ventilation and air conditioning (HVAC) and lighting systems, controls and sensors that minimize emission and noise, use of renewable fuel sources, and utilization of best available control technology to minimize particulate emissions.

Policy 6.2: Protect and enhance air quality and

reduce greenhouse gas emissions.

6.2.1 Work at the state and regional level to

encourage analysis and implementation of

sustainable energy generation within the city,co-generation

facilities, and clean alternative fuels.

Policy 6.4: Expand the use of renewable energy.

6.4.1 Partner with others, including research

institutions, to explore the feasibility of alternative

energy sources for Minneapolis government

operations, and for use by residents and


6.4.2 Encourage use and generation of renewable

energy systems in the city.

Provide the date that Location and Design Review was conducted for the project, the outcome of that analysis and the date formal action was taken by the Planning Commission:

This will not be required as the buildings in the

project are owned by the City and no changes to

the building’s appearance or footprint will occur.

Economic Development

Will the project contribute to growth in the city’s tax base?


Describe the economic development impact of the project:


Does the project support redevelopment opportunity that without the project would be infeasible?



Is the proposed project on an existing or planned transitway, transit route, or high-volume pedestrian corridor? If yes, provide details on how the project will improve the transit and/or pedestrian experience.


Does the proposed project anticipate multi-modal enhancements (sidewalks, bicycle or transit facilities)? Provide details.


Is the right-of-way constrained and do you anticipate that modes of travel will be competing for space? Provide details, is there potential for innovative design options? Provide details


Operating Impacts

Operations & Capital Asset Maintenance: TBD

Is this request for new or existing infrastructure? Existing

What is the expected useful life of the project/Improvement? 25 Years

Year that Operating Incr/(Decr) will take effect? 2022

What is the estimated annual operating cost increase or (decrease) for this project?

Over the 25-year life of the solar arrays, the City will see a net savings of $2.1 - $7.4 million in electricity costs by generating its own power instead of purchasing the power from Xcel Energy.

Any Prior Year Remaining Bond Authorizations? None

Prior Year Remaining Bond Authorizations: $1.5M

Describe how operating cost increases or decreases were determined and include details such as personnel costs, materials, contracts, energy savings, etc:

The cost of the solar installations was budgeted at$2500/kWDC for each installed solar panel, which is at the high end of 2021 roof-top solar costs. This brings the array installation costs to just under $5.3 million.

The project will generate savings over the 25-year life of the arrays by replacing 2.6 million kWh of electricity currently being purchased from Xcel Energy. The actual savings will be determined by the unknown rise in electricity costs for the next 25 years, but a statistical prediction of this increase was determined by analyzing the rate increases from 2008 through 2019. At a 95% confidence level, the average annual rate increase will be between 1.9% - 5.9%. This would produce a reduction of utility costs of between $7.7 - $13.1 million over the 25-year life of the arrays. This will be a net savings of $2.1 million - $7.4 million over the 25-year life of the arrays.

If new infrastructure, discuss how the department/agency will pay for the increased annual operating costs:


For new infrastructure, describe the estimated timing and dollar amount of future capital investment required to realize the full expected useful life of the project:


  • 2022
    • 3 buildings
    • $1,550,000
  • 2023
    • 3 buildings
    • $ 1,118,000
  • 2024
    • 4 buildings
    • $ 1,005,000
  • 2025
    • 4 buildings
    • $ 580,000
  • 2026
    • 4 buildings
    • $ 510,000
  • 2027
    • 4 buildings
    • $525,000

TOTAL of $5,288,000

Project Coordination

Describe completion status for ongoing projects and how and when the department/agency plans to use the prior year remaining bond authorizations:


If this is a new project, describe the major project phases and timing anticipated for completing the project:

2021 – Installation of arrays at Currie Maintenance Facility and the Lowry Warehouse

2022-2027: Each year solar arrays will be installed on 2 - 4 buildings.

Scalability/Funding Allocation Flexibility – discuss any flexibility to increase or decrease funding among the years in the five-year plan and the most that could be spent in a given year:

Cost estimates are expected to be within 20% of actual costs. Accelerating the expenditures to install solar arrays on more than 6 buildings each year is possible in terms of timing, but the City’s Energy Manager does not have the capacity to manage that many capital projects. The acquisition of an outside project manager would allow the project to proceed faster, but at an extra cost of $100,000 - $150,000 for each year that the outside project manager is used. As currently planned, the maximum spent in any year would not exceed $1.2 million.

Minneapolis Goals and Strategic Direction

Minneapolis is a growing and vibrant world-class city with a flourishing economy and a pristine environment, where all people are safe, healthy and have equitable opportunities for success and happiness.Below is a description of how this project meets each of the City's Goals. Below is a description of how this project meets each of the City's Goals.

Below is a description of how this project meets each of the City's Goals.

Public Safety

Collaborative and community-inclusive strategies to ensure safety for all members of our community:



The City prioritizes equitable access to safe, stable, accessible, and affordable housing to eliminate racial disparities in housing:


Economic Development

The City prioritizes economic inclusion so that all workers and families are supported and People of Color, Indigenous and Immigrant (POCII)-owned businesses in all sectors can thrive.

The project will be subject to the City's Small and Underutilized Business Program (SUBP) goals, Affirmative Action and Compliance ordinance, and the Prevailing Wage requirement.

Public Services

The City prioritizes reliable and equitable access to high-quality public services.

The reduction in electricity costs created by the solar installations can be used to allow more funding for each department that occupies a building with a solar array.

Environmental Justice:

The City prioritizes sustainable practices and renewable resources to equitably address climate change while restoring and protecting our soil, water and air.

The 2.6 million kWh reduction in electricity purchased from the Xcel Energy grid will reduce the City’s annual greenhouse gas emission by 1,000 metric tons. This is a 2.4% reduction compared to the City's Municipal Operations carbon footprint in 2020.

Built Environment & Transportation:

The City prioritizes high quality neighborhoods, streets, infrastructure and equitable access to multimodal transportation in all parts of the City through thoughtful planning and design.

Building these arrays will reduce the carbon footprint of each of our existing facilities.

Public Health:

The City Prioritizes positive youth development so that all children can grow healthy and safe:

Reducing greenhouse gas emissions will lower

asthma and other respiratory illness rates in the


Arts and Culture:

The City prioritizes arts and culture as important part of inclusive economic development and placemaking in our communities:


Additional Information

Add any additional information you feel is important for the CLIC committee, Mayor, City Council members

or the general public to know about this potential project and why it should be approved: