A Complete Guide to Minnesota’s Solar*Rewards & Incentives

Thinking about going solar in Minnesota? You’re in luck. With a combination of utility incentives, tax exemptions, and federal tax credits, Minnesota homeowners can dramatically reduce the cost of going solar—especially when working with a local expert like Wolf River Electric.

Let’s explore how Minnesota’s Solar*Rewards program works and what other solar incentives you may qualify for in 2025.

What Is Xcel Energy’s Solar*Rewards Program?

Solar*Rewards is a performance-based incentive (PBI) program offered by Xcel Energy for residential solar customers in Minnesota.

Here’s how it works:

  • You get paid annually for the solar energy your system produces.

  • Payments are based on your actual kilowatt-hour (kWh) production.

  • The program runs for 10 years, providing long-term financial benefits.

In 2025, Xcel offers $0.07 per kWh produced—on top of your energy bill savings.

Example: If your system produces 7,000 kWh/year, you could earn $490/year, or $4,900 over 10 years.

Who Qualifies for Solar*Rewards?

To be eligible, you must:

  • Be a residential customer of Xcel Energy in Minnesota

  • Install a system under 40 kW AC

  • Use a certified installer like Wolf River Electric

  • Apply and get approved before funding runs out for the year

The program operates on a first-come, first-served basis—so timing is key. Once funding is gone, you may have to wait until the next calendar year to reapply.

Other Minnesota Solar Incentives

Beyond Solar*Rewards, the state offers several additional perks:

✅ No Sales Tax on Solar Equipment

That’s a 6.875% savings off your system cost—automatically applied.

✅ Property Tax Exemption

Solar adds value to your home, but Minnesota law ensures your property taxes won’t increase because of it.

✅ Local Utility Rebates

Some municipal and cooperative utilities also offer cash incentives for solar installations. Wolf River Electric can help identify any available in your area.

Don’t Forget the 30% Federal Tax Credit

Thanks to the Inflation Reduction Act, you can deduct 30% of your total solar system cost from your federal taxes. That includes:

  • Equipment

  • Labor

  • Permitting

  • Battery storage (if installed at the same time)

This credit is available through 2032, but the sooner you go solar, the sooner you start saving.

Maximize Incentives with Wolf River Electric

Wolf River Electric is a qualified Solar*Rewards installer and a trusted name in Minnesota solar. We take care of:

  • Filing your Solar*Rewards application

  • Designing your system for maximum production (and savings)

  • Handling all tax documents and rebate paperwork

We don’t just install solar—we guide you through the process and help you capture every dollar you’re entitled to.

Ready to Save?

If you’ve been considering solar, now’s the time to act. Solar*Rewards funding is limited, and energy costs aren’t getting any cheaper.

👉 Contact Wolf River Electric today for a free quote and incentive analysis—we’ll show you exactly how much you can save.