Study says solar thermal systems slow to catch on in Minnesota

FINANCE & COMMERCE. Thu, January 16, 2014 By Art Hughes.  The Minneapolis Third Precinct Police Station, at 3000 Minnehaha Ave. S., has a solar thermal collector on the side of its building. Public buildings are one place the Minnesota Department of Commerce study recommends using solar thermal systems. (Staff photo: Bill Kloz) Solar thermal energy is an untapped resource for commercial users in Minnesota, according to an analysis released this week by the Minnesota Department of Commerce. The analysis commissioned by the state finds the cost of installing and running the system is competitive with most other heating fuels once government incentive programs are factored in. Minnesota has the technical potential to satisfy more than 38 percent of its hot water needs using solar thermal methods, the study found. 'We think there’s a compelling opportunity for solar thermal for targeted applications,” said Neil Veilleux, senior consultant for Boston-based Meister Consultants Group, which conducted the study. “Our first analysis suggests it makes the most sense for commercial users that have large, stable hot water demand.”

Even so, solar thermal systems pose a pricey upfront investment, which is a barrier for businesses looking to save on their monthly heating costs with solar systems. In addition, solar thermal set-ups don’t provide 100 percent of a building’s heating needs so there needs to be a conventional-fuel back-up system. Buildings also need the right design to accommodate the equipment. Only 30 solar thermal systems have been installed in Minnesota in the past five years, according to the analysis.
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