A quick explanation of Minnesota Solar Incentives, federal solar tax credit, Net Metering, and how MN is working towards making it more affordable for Businesses and residents to install a solar energy system, get equipped with solar panels, and start saving while working towards a sustainable future.
Minnesota offers a variety of solar incentives to help make solar energy more accessible and affordable for its residents. MN Solar Incentives come in the form of state, local, and federal tax breaks and rebates from utilities and other organizations.
These local solar incentives can drastically reduce the cost of installing a solar power system, making it more feasible to go with renewable energy.
One key MN Solar Incentive is the Federal Solar Tax Credit (ITC) which gives residential and commercial customers back a percentage of what they spend on their solar energy system installation and solar panels.
And thanks to the new inflation reduction act, these tax credits return up to 30% of your total costs back in dollars that can be applied directly toward your taxes each year. The federal tax credit can be saved for up to ten years and applied periodically yearly, giving you a significant break on your federal taxes.
The Minnesota Solar Incentives program also offers solar rebates for local installation costs, depending on where you live in the state. The MN Solar Rebate Program gives residential solar customers a rebate of up to $0.25 per watt of installed solar capacity or up to 10% off their total system cost.
Commercial and industrial customers can receive even more. Some cities offer 15-25% off of solar energy systems costs if they purchase over 400kW of energy produced from their solar systems for their commercial office buildings. These incentives help businesses take a big step towards renewable energy by reducing their upfront cost while saving money on their electricity bills in the long run, thanks to annual energy production!
Finally, Clean Energy (PACE), Residential Renewable Energy Tax Credit Program (RERTC), solar renewable energy certificates (SRECs), and Minnesota-Made Solar Thermal Rebates (MMSR). These are all programs that can and should be taken advantage of.
If you live in Minnesota and are looking for an incentive to cover the cost of solar panel installation, SolarSense could be the answer. This lottery-based rebate program provides up to 60 percent coverage on qualified solar installations up to a maximum of $20,000 when working with Minnesota Power. In addition, there are size and type requirements that must be met in order to qualify. You can calculate how much you might get back using PV Watts, a publicly available tool developed by the National Renewable Energy Laboratories (NERL) To calculate the SolarSense rebate.
Minneapolis residents can take advantage of the Green Cost Share program to get an incentive for their solar panel installation. Qualified participants receive a minimum of $0.20 per kilowatt-hour produced. Additionally, St. Louis Park Solar Sundown offers a rebate of up to 6% of total cost for low-income homeowners, and the Chaska Solar Rebate Program provides rebates up to $2,500 for qualified customers.
Since 2005, Minnesota has offered a solar energy state sales tax exemption. This means that any solar systems installed or purchased in the state are 100% exempt from sales taxes. This applies to solar photovoltaic (PV), solar thermal, and other types of renewable energy systems. The savings can add up quickly. For example, purchasing a 10kW system for $20,000 could save nearly $1,400 in sales tax alone if calculated at the regular retail electric sales tax rate of nearly 7%.
Utilities throughout Minnesota also offer great solar electric rebates programs that reduce your upfront costs when going solar, making solar power more accessible. Xcel Energy MN offers solar rebates of up to $1,000 per system and provides net metering programs that pay you for every kW of output generated by your array.
Minnesota Power, Otter Tail Power, Dakota Electric Association, and some Electric Cooperatives also offer varying incentive programs to help reduce the cost of installing a solar energy system.
How much energy a solar panel system produces plays a big part in net metering profits, which is why it’s essential to understand how net metering works. Yes, even the oldest net metering laws matter.
Net metering works by allowing you to sell back excess energy production back to electric utilities. The reason net metering works so well is due to the fact that it helps drastically offset the cost of installing solar panels. And after the solar PV system is paid off, you can start making money by banking on your solar photovoltaic system and redeeming renewable energy certificates!
They are all great and, in most cases and can be combined to reduce the cost of going solar, helping MN residents and businesses save money and become more sustainable. With the federal solar tax credit, Minnesota solar incentives, local incentives, and utility company rebates, MN is making it easier than ever for its citizens to switch to solar energy.
By taking advantage of these Minnesota Solar Rebates & Incentives, you can install your solar system for less and save on your electricity bill sooner!
Minnesota’s solar incentives are constantly being updated as the state works towards creating a more sustainable future. Business owners & residents near MN should keep an eye out for new offerings from local governments or utilities, as they may be able to get additional savings on their solar energy systems. With Solar Incentives in MN becoming increasingly attractive, now is the best time to install solar panels!
Wolf River Electric is a solar company that can help you take the next step toward energy efficiency. We’ve got you covered; let’s lower your outrageous electric bill and get you started with your solar installation and some energy-efficient equipment today! For those researching MN Solar Incentives near them, local installers, solar installers, or solar companies. Contact us today to see what Incentives may be available in your area.