The Complete Guide to Minnesota Solar Incentives
Considering solar panels in Minnesota? With more than 250+ sunny days per year and some of the top solar incentives in the US. Its no wonder why so many are switching to solar in The Land of 10,000 Lakes!
In this article we'll explain the top solar incentives & local programs available to Minnesota home & business owners.
Read on to learn more or enter your zip code below to see exactly which solar incentives & programs your home qualifies for!
Enter your zip code to see which Minnesota Solar Incentives you qualify for!
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What Are Minnesota Solar Incentives?
Solar incentives in Minnesota are government initiatives, policies, or financial programs designed to promote the adoption of solar energy systems. These incentives strive to make solar installations more affordable and attainable for both residential and commercial properties. They encompass various forms such as tax credits, rebates, grants, and net metering programs. Some solar programs in Minnesota even provide opportunities for free solar panel installations. Learn more!
Minnesota solar incentives can help residents and businesses minimize upfront costs and maximize the financial advantages of making the switch to solar.
Federal Solar Investment Tax Credit (ITC)
The Green Energy Tax Credit, officially known as the Federal Investment Tax Credit (ITC), is a valuable financial incentive offered to residents and businesses in Minnesota who choose to install solar energy systems. Eligible individuals or entities can take advantage of the ITC to claim a tax credit equivalent to 30% of the total cost of their solar installation, covering both equipment and installation expenses. This credit significantly reduces federal income taxes owed, leading to significant savings. It's worth noting that the ITC is subject to a gradual phase-down, with the current rate set at 30% until the end of 2032.
Solar Net Energy Metering (NEM)
Solar net metering is a program available to solar system owners in Minnesota that enables them to receive credits for the excess electricity they generate and send back to the grid. This means that when a solar system produces more electricity than is being consumed, the surplus is fed into the grid, and the solar owner receives credits that can be used to offset future electricity consumption. These credits effectively reduce or eliminate the cost of electricity bills.
Minnesota has a Solar Renewable Energy Certificate (SREC) program, where solar system owners earn certificates for the renewable energy they generate. These certificates can be sold to utilities or other entities, providing an additional source of income for solar owners.
Solar Sales Tax Exemptions
In Minnesota, solar panels are exempt from sales tax, providing an automatic discount of 6.875% on the purchase of solar energy systems. This exemption applies to the equipment and materials used in the installation of solar panels. By exempting solar panels from sales tax, the state aims to encourage the adoption of renewable energy and make solar installations more affordable for residents and businesses. This discount helps reduce the upfront costs of going solar in Minnesota and promotes the transition to clean and sustainable energy sources.
Enter your zip code to see which Minnesota Solar Incentives you qualify for!
Do I Qualify?
Please enter a zip code
Minnesota Solar Programs
Minnesota is a state that embraces impressive solar programs and initiatives, demonstrating its commitment to sustainable practices. These initiatives, led by local organizations and non-profits, showcase the proactive steps taken by Minnesota communities to promote the use of solar energy. Through these programs, solar power becomes more accessible and affordable, fostering a greener and more sustainable future for the state. By supporting these initiatives, Minnesota is actively contributing to the advancement of renewable energy and environmental stewardship.
Made in Minnesota Solar Incentive Program
The Made in Minnesota Solar Incentive Program is designed to encourage the use of solar PV systems manufactured within the state of Minnesota. Residential and commercial customers who install solar panels made in Minnesota are eligible for cash incentives through this program. The incentives are provided as a financial reward for supporting local manufacturing and promoting the growth of the solar industry within the state. By choosing solar PV systems made in Minnesota, customers not only benefit from renewable energy but also contribute to the economic development and job creation in the local solar manufacturing sector.
Minnesota Power’s SolarSense program
Minnesota Power's SolarSense program offers rebates to customers installing solar electric photovoltaic (PV) systems, reducing the initial costs associated with solar installation and making it a more viable option. Funding for the program is allocated through a lottery system for the years 2023 and 2024, and interested customers must submit a SolarSense application to be considered. The application period opens on March 1 of each program year and lasts for three calendar days. In the event of more applications than available funds, projects may be placed on a waitlist. The annual budgets for the SolarSense program are approved through 2024, and any unused funds from previous years may be rolled over.
Xcel Energy's Solar Rewards Program
Xcel Energy's SolarRewards Program, supported by the Minnesota Renewable Development Fund, provides an annual payment to solar homeowners in Xcel Energy's service area based on their photovoltaic system's energy production. Participants receive $0.07 per kilowatt-hour (kWh) of solar power produced each year for a maximum period of 10 years. It's important to note that the SolarRewards program budget for 2022 has been fully allocated, but interested individuals can join a waitlist; however, it is essential to understand that waitlisted projects do not guarantee funding. This program offers an opportunity for solar homeowners to receive financial incentives for their renewable energy generation in partnership with Xcel Energy.
Enter your zip code below to see which Minnesota Solar Programs you qualify for!
Do I Qualify?
Please enter a zip code
Going Solar in Minnesota
Minnesota embraces a sunny opportunity for solar energy adoption with its favorable climate and abundant sunlight. By going solar, residents and businesses can decrease their dependence on traditional energy sources, resulting in notable savings on electricity bills and a positive impact on the environment. With various incentives, programs, and financing options, transitioning to solar power in Minnesota is not only financially beneficial but also contributes to a greener and more sustainable future in the state. Join the solar revolution in Minnesota and unlock the potential for a brighter tomorrow while enjoying the rewards of renewable energy.
Start the switch to solar today and explore all of your solar options with a Solar Savings Quote from EcoGen America, Minnesota's most trusted solar company.
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