Permitting and other “soft costs” account for over the half expense of residential solar projects, making rooftop solar less accessible for many Minnesotans, a new report finds.
Inconsistent and resource-intensive permitting processes across Minnesota are hindering the growth of rooftop solar, a report from the Institute for Local Self-Reliance (ILSR) found, making it “harder, slower and more expensive” for Minnesotans to go solar.
Minnesota has set ambitious targets for carbon-free electricity, aiming for 100% by 2040. The report emphasized that streamlining solar permitting is crucial to meeting these goals. Cumbersome processes increase project costs and rates of residents canceling rooftop installations, limiting the deployment of new solar energy sources needed to ensure a reliable electricity supply.
(See also: “How much can I expect to save by installing solar?”)
Permitting Inconsistencies
According to the report, permitting and other “soft costs” account for over half the total expense of residential solar projects, making solar less accessible for many Minnesotans, especially those with lower incomes.
Though it noted that permitting inconsistencies aren’t necessarily a pervasive issue across the state, the report said many installers face frequent challenges and complications in certain cities and counties.
“Unpredictable and unclear permitting practices drive up the cost of going solar,” the report said, “as installers must spend extra staff time to identify the correct process and then use more resources to address any surprises along the wide.” It added, “Plus, unexpected delays or costs frustrate households and may even push them to cancel their solar installation instead of taking on the extra wait or expenses.”
Most local governments in Minnesota require homeowners to get both building permits and electrical permits before they install rooftop solar.
The Minnesota Department of Labor and Industry approves electrical permits instantly, but according to the report, not one local government has yet adopted instant permitting. Many homeowners reported their local governments took up to six weeks to approve permits, compared to less than a week in other municipalities. The reported fees ranged from the tens or hundreds of dollars to more than a couple thousand dollars for residential rooftop solar.
For example, several solar companies pointed to Maple Grove, a metro area with 71,000 population, as having a permitting process that is among the most difficult of the communities they work in. While the city reported its permitting process only takes one to two weeks, solar installers said it often takes about a month, which is two to three times longer than in other communities.
When revised applications had a file name that slightly deviated from Maple Grove’s certain unique naming convention, the city rejected them.
Wolf River Electric employees claimed that permitting costs in Maple Grove have been rising, with building and electrical permits together now commonly costing over $1,000 or even as much as $2,200 for the company’s projects, the report said. They also said the city has begun asking solar installers for their signed customer agreements to verify the total project cost, basing the price of both the building and electrical permits on that same value.
“It almost seems like they want to know what the [customer] is paying for the system, so that they can charge more for their permit fees,” a Wolf River Electric employee said in the report.
Another company said Maple Grove did not charge high permit fees or as ask them for full contract valuations, but they have run into that issue in Edina, another suburb of Minneapolis, the report said.
Poor communication and snail mail hurdles
Numerous communities in Minnesota still require that parts or even all of the permitting process be completed via snail mail, over the phone, the report said, or, less commonly, in person, such as requirements to mail physical paperwork or check.
Installers said their project timelines were further complicated by uncommunicative or contentious permitting authorities, the report said, making it challenging to navigate the application process efficiently.
The lack of standardized processes across different jurisdictions forces installers to navigate a patchwork of unique requirements, often leading to confusion, the report found.
How governments can fix things
The report offers recommendations for both local and state governments to address these challenges.
For local governments:
- Use automated permitting software.
- Provide clear documentation and checklists.
- Create online permitting options.
- Establish common-sense requirements for engineering approvals consistent with best practices.
- Adopt flat or size-based permit fees.
For state government:
- Promote or require use of automated permitting and the state’s new incentive program (passed in 2024).
- Provide technical support and other resources to local governments.
- Encourage local governments to adopt consistent and standard permitting practices.
(Read: “Automated solar permitting speeds approval process” and “Six states offer grants to help local governments automate solar permitting”)
Minnesotans who wish to go solar are not alone in their permit hinderances. A separate study by Brown University recently found rooftop solar in Colorado is bogged down by permitting costs.
Without these improvements, solar installations across Minnesota’s rooftops may stagnate, as suggested by a Maple Grove administrative worker who told a Wolf River installer, “You have the choice of where you do work. Maybe you should not work in Maple Grove.”
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