Minnesota Solar Power in Minnesota
Not sure if solar is right for you? Incentives for solar power in Minnesota vary by utility provider. Read below or contact an Minnesota Renewable Energies consultant to see what incentives are available for your solar system. Our team of dedicated professionals are waiting to assist you with every aspect of your solar energy project, from initial site visit and permitting to incentive paperwork and complete installation.
Minnesota Solar Incentives
There’s no time like the present – read below to learn what incentives may be available to you as a Minnesota resident.
Xcel Energy – Solar*Rewards Program
Available for customers of Xcel Energy. First come, first served!
This year’s program will allow MN solar producers in Xcel Energy territory to receive an annual rebate of $0.08/kWh of solar production for the next 10 years — in addition to net metering. This program offers incentives to customers for installing of PV panels and inverters listed on the California Energy Commissions (CEC) list. The PV system must be designed to produce less than 120 percent of the customer’s annual energy use, based on the past 12 months of energy use, and may have a capacity of 0.5 to 20 KW.
Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years.
Made in MN Solar Rebate Program
Available for customers of Xcel Energy, Allete (Minnesota Power), and Otter Tail Power Company. Applications for the most recent round of the Made in MN solar rebate lottery were due by February 28, 2017.
The Minnesota legislature established a solar PV incentive program for consumers who install PV using solar modules certified as manufactured in Minnesota. The program is administered by the Department of Commerce with an annual budget of up to $15 million for ten years. The program is funded with 5% of each public electric utility’s total annual Conservation Improvement Program (CIP) budget. The Xcel Renewable Development Fund supplements this amount to bring the total incentives available to $15 million per year available to public electric utility customers.
Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years. Owners of an approved and installed PV system will receive payments annually by July 1st based on the kWh output of the system in the previous calendar year. There are three incentive levels depending on the ownership and system size. In addition, amounts vary by module. The three levels are For-Profit commercial, Non-Profit/Public, and Residential. Commercial systems may have a capacity of up to 40 kW and residential systems may have a capacity of up to 10 kW. Applications are approved by lottery, with $7.5 million allotted for residential rebates and $7.5 million for commercial and non-profit.
2017 Made in MN Solar Incentive Amounts
- Residential—for systems less than 10 kW
- Heliene Modules = $.16/kWh
- Itek Energy Module = $.18/kWh
- Silicon Energy Voyageur Module = $.21/kWh
- tenKsolar Module XT-A = $.14/kWh
- Commercial For Profit—for systems less than 40 kW
- Heliene Modules = $.10/kWh
- Itek Energy Module = $.11/kWh
- Silicon Energy Voyageur Module = $.11/kWh
- tenKsolar Module XT-A = $.11/kWh
- Tax Exempt/Nonprofit/Government—
for systems less than 40 kW
- Heliene Modules = $.11/kWh
- Itek Energy Module = $.14/kWh
- Silicon Energy Voyageur Module = $.14/kWh
- tenKsolar Module XT-A = $.13/kWh
Rochester, Owatonna, and Austin Public Utilities
Available for customers of Rochester, Owatonna, and Austin Public Utilities. The 2017 rebate pool is open for applications!
The Conserve & $ave Rebate program offers incentives to customers of Rochester, Owatonna, and Austin Public Utilities for installing a PV system that meets the MN Dept. of Energy’s rebates requirements in addition to the utility requirements. The PV system may have a capacity of 0.5 to 10 KW.
Incentives for solar PV are currently set at $0.50 per watt (based on the nameplate module rating) up to a maximum total rebate of $5,000.
Other local programs may be available. Don’t hesitate to contact us to learn whether or not an incentive is available for your utility!
Federal Solar Incentives
Federal Income Tax Credit
Available to any property owner in the United States.
Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property applies to solar-electric systems and several other renewable energy technologies. The Consolidated Appropriations Act, signed in December 2015, extended the expiration date for PV technologies, and introduced a gradual step down in the credit value for these technologies.
Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.
The maximum allowable credit, equipment requirements and other details vary by placed in service date, as outlined below.
Solar-electric property tax credit step down schedule
- 30% for all systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
- The home served by the system does not have to be the taxpayer’s principal residence.
If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The form that you will need to complete in order to file for the federal tax credit is Form 5695. It is to be filed in conjunction with your Federal Income Tax Return. This form can be found at www.irs.gov.
Additional Solar Incentives for Business Owners
Available to any business in the United States.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in PV through depreciation deductions. A solar PV system is classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A) to define eligible property.
USDA Rural Energy for America Program (REAP) Grants
Available for rural customers, as defined by the USDA.
The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to install solar PV systems. The maximum funding available is 25% of system cost, and each businesses total incentive will be determined based on a business level feasibility study.
Ready to talk about your solar energy system possibilities? Contact us to get a free solar quote.