Minnesota Solar Energy Incentives

Minnesota’s rebates and incentives will help you save on solar

Minnesotans have a lot to brag about when it comes to the top-rated solar incentives and programs available in the Land of 10,000 Lakes. Take a look at our breakdown of all of the state-specific benefits of going solar in MN.
What are the best Minnesota solar tax credits and incentives?

There are a number of great reasons to go solar in Minnesota but sometimes it’s hard to find them compiled in an aggregate incentives list. Luckily, you came to the right place! Here’s our top 3 list for Minnesota’s solar incentives:

Minnesota Solar Energy Incentives: Sales tax exemption

When you install solar panels on your home in Minnesota, you don’t have to pay any sales tax on your solar purchase. Considering that state sales tax is nearly 7 percent, the sales tax exemption means major solar savings.

Net metering in Minnesota

With so many solar incentives floating around, it may be easy to forget about one of the best ones out there that will apply to any Minnesota homeowner: net metering. All residential-sized PV installations qualify to receive solar bill credits for sending their energy back to the grid. Xcel Energy offers the top utility net metering program in Minnesota.

Minnesota Solar Energy Incentives: The Federal Investment Tax Credit

When discussing the pros and cons of going solar rather than relying on fossil fuels, the benefit of the solar ITC is the first substantive factor that comes up in solar’s favor. This national solar incentive that pays for 30 percent of every PV installation continues to generate some strong momentum pushing the solar industry into the future. Just remember: to benefit from this great incentive, you need to own your system outright by purchasing either with a loan or in cash.

Other Minnesota solar energy programs

When looking at the biggest reasons to go solar in MN, probably the best incentives of all can be found within the state’s awesome utility-specific solar programs:

Minnesota Solar Energy Incentives: Xcel Energy Program

Powered by the Minnesota Renewable Development Fund, this performance-based incentive offers solar homeowners in Xcel Energy’s service area a yearly payment based on the energy production of their photovoltaic system. Xcel pays homeowners $0.08 per kilowatt-hour (kWh) of solar power production annually for up to 10 years.


This lottery-based rebate will cover almost the entirety of your MN solar installation if you’re chosen as a lucky recipient. SolarSense pays up to 60 percent of the price of installation for any qualified solar homeowner under the utility of Minnesota Power. Check out the requirements for system size, system type and installer to see if you qualify for this amazing solar incentive.