Sherco, Minnesota’s largest coal plant, is being converted into a major solar-and-storage hub by Xcel Energy. The first three phases now produce about 710 MW from roughly 1.7 million solar panels, and a fourth phase could raise capacity to 910 MW by 2029 — enough for 190,000+ homes. Planned battery storage could reach 600 MW, and Xcel supports the Minnesota Energy Connection to carry at least 2,000 MW of wind and solar. Xcel also expects to return roughly $480 million in federal tax credits to customers.
Sherco Reborn: Minnesota’s Largest Coal Plant Converted Into 1.7 Million Solar Panels and Large Battery Hub
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The Sherburne County Generating Station (commonly called Sherco), long Minnesota’s largest coal-fired power plant, is being redeveloped as a major solar-and-storage complex after owner Xcel Energy abandoned earlier plans to replace it with natural gas.
A technology commentator known as The Electric Viking highlighted on YouTube that Sherco’s existing high-capacity transmission infrastructure is a major advantage for the project: the site already has equipment capable of moving large amounts of power onto the regional grid, reducing connection costs and timelines.
According to the video and project filings, the first three phases of Sherco Solar are online today and deliver roughly 710 megawatts (MW) of capacity from about 1.7 million photovoltaic panels, making it the largest solar installation in Minnesota. A proposed fourth phase could expand output to 910 MW by 2029, which Xcel estimates would be enough to meet the average needs of more than 190,000 homes.
The site also includes significant battery storage plans. If fully approved and built, storage could reach up to 600 MW, allowing surplus daytime generation to be stored and dispatched when demand is higher or solar output falls.
Cost and speed were central to the decision. The Electric Viking reported that replacing the aging coal plant with solar and batteries is less expensive than continuing coal operations, and that a proposed gas replacement was rejected because it would have been costlier. Xcel has said the project leverages existing infrastructure and broader transmission upgrades to keep costs down.
"Cheaper power, no job losses, and a coal site reborn as a clean energy hub," the video creator summarized.
Beyond costs, retiring coal combustion at Sherco should reduce local air pollution. One viewer commented on the video: "This makes a boatload of sense. Also a win for the locals as there will be a dramatic reduction in pollution and a drag on property values. Love it." (comment as posted).
To move more low-cost renewable energy across the state, Xcel supports the Minnesota Energy Connection transmission line, intended to carry at least 2,000 MW of wind and solar from southwest Minnesota into the broader grid. Sherco’s existing interconnection is being reused to speed delivery of the new renewable power.
The Electric Viking also noted that Xcel expects to return roughly $480 million in federal tax credits tied to the project to customers — a payment that could help lower rates for ratepayers if approved and realized.
Sherco’s conversion reflects a broader energy transition in the U.S. and worldwide toward resources that can be built faster, operated more cheaply, and support grid reliability. In the U.S., renewables accounted for more than 30% of national generating capacity during the first five months of 2026, with solar growing especially quickly.
Whether completed as planned, Sherco will be an example of how large fossil-fuel sites can be repurposed into utility-scale clean energy hubs using existing grid connections and new storage technologies.
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