The Olmsted County Board of Commissioners voted to accept eight Minnesota Solar on Public Buildings grants and approved a budget change to cash-flow the projects, a county official said.

The grants are through the Minnesota Department of Commerce’s Solar on Public Buildings program and cover projects across county facilities. "For consideration this evening is acceptance of a grant through the Minnesota Solar on Public Buildings program through the Department of Commerce," said Matt Miller, director of facilities and building operations.

The grants fund arrays for three buildings at the Public Works Service Center, the planned exhibition center at Grand Park, two locations at the Oxbow nature center (the nature center and a caretaker’s house), and the main office and caretaker’s house at Chester Woods Park. County staff told commissioners the exhibition center application was accepted even though the building is not yet complete.

County staff said the projects require an initial outlay of roughly $540,000 from county reserves to pay for construction up front. "It's about 540,000 in reserves," Miller said. The state reimburses eligible costs and the county plans to seek a federal Inflation Reduction Act (IRA) reimbursement for the remaining portion; staff said the state will reimburse within about 30 days of a complete request and the federal tax-year reimbursement follows when a project is placed in service.

County staff explained the intended funding mix: the state program covers roughly 70% of the project cost and the county will apply for the Inflation Reduction Act credit for the remaining 30%, noting the combined state and federal reimbursements cannot exceed 100% of project cost. Miller said the cash-flow gap is expected to extend until 2027 while reimbursements are processed.

Commissioners asked about expected energy offsets and payback periods. Miller said some systems may be sized up to 120% of a building’s annual consumption to allow for future changes in use. He noted earlier county projects that used the IRA credit had paybacks in the seven- to 10-year range once tax incentives were applied. "On those 3 projects, we receive a 30% credit from the Inflation Reduction Act... that reduces your payback into that 7 to 10 year range," Miller said.

A motion to accept the grants and approve the budget change to cash-flow the projects passed on a voice vote.

County staff said the projects align with the county’s climate action and environmental sustainability goals, and they also signaled the county will continue to pursue grant opportunities for renewable energy in county facilities.

Several commissioners commented that the grant program historically favored Excel Energy’s service area and that the state’s decision to expand eligibility outside that area made these awards unusual and beneficial to the county.

Projected next steps include executing grant contracts with the Department of Commerce and beginning contracting for the installation work once funding is in place and procurement steps are complete.