Minnesota mandates flexible interconnection, VPP pilot for Xcel Energy

Minnesota regulators have approved Xcel Energy's long-term plan for upgrading its power distribution system, with several requirements that could affect homeowners with solar panels, batteries, or plans to add them. The state's Public Utilities Commission wants Xcel to submit updates by the end of 2026 on how it connects home solar and battery systems to the grid, aiming to cut delays and red tape that can slow down these projects. The utility must also improve how it forecasts the impact of rooftop solar and home storage on the grid, which regulators expect will lower costs for all customers over time.

Looking further out, Xcel must file plans by March 2027 for a pilot program that would link together customer-owned solar panels, home batteries, and flexible electric loads into what's called a virtual power plant — a network of small home systems working together to support the grid during high-demand periods. Regulators specifically required that the pilot include options for low-income customers, renters, and people living in apartment or condo buildings, not just homeowners with their own solar and storage.

The order also directs Xcel to draft a wildfire prevention plan, undergo an independent audit of its technical standards, and take part in discussions on building equity into its grid planning. Advocacy groups involved in the case, including the Environmental Law & Policy Center and Vote Solar, said the changes should make it easier and more affordable for households to connect solar and battery systems to the grid while improving overall reliability.