LREC Awaits Funding Awarded to GRE to Develop 2.4 MW Solar Array

A portion of grant monies awarded to Great River Energy (GRE) through the USDA’s Empowering Rural America (New ERA) program will directly benefit LREC through the reduction of cost on a power purchase agreement for a planned 2.4 MW solar array. While a green light was given to move forward on the planning phase of the project, full approval from the LREC Board of Directors will be needed for continued development once final contracts and pricing are received.

An application for the funding was submitted in a consortium with other Great River Energy (GRE) co-ops and is part of a $794M federal investment from New ERA as part of the Inflation Reduction Act signed by President Biden in 2022 to help rural Americans transition to clean energy.

If approved by the Board, the array as planned will operate on a single-axis tracker to maximize production with connection to LREC’s existing grid, thereby reducing any interconnection cost. Upon completion, energy generated will act as a hedge against inflation and future wholesale power cost increases.

LREC engaged in a roughly year-long process of interviewing and receiving proposals from multiple solar developers before selecting Minneapolis-based Nokomis Energy to assist with future next steps. Established in 2017, clean energy-focused Nokomis has experience in partnering with other communities throughout the state to develop solar programs, including the City of Farmington, Faribault Public Schools and the Waite Park Community Solar Garden project scheduled to begin in 2026. Expertise in maintaining arrays in our cold climate was also a contributing factor in the decision.

Once development and construction are complete, LREC will enter into a power purchase agreement (PPA) through GRE for the energy generated by this project, rather than owning the solar array. Entering into a PPA mitigates any risks of the array not performing as expected, as LREC will only pay for the energy generated by the solar array.

Updates on this project will be posted on our website, Facebook page and in NewsFlashes as more information becomes available.