There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Minnesota continues to develop solar friendly programs. Lawmakers recently adopted the IEEE solar interconnection standard, making it easier to connect your panels to the grid. Minnesota has also been a leader in implementing innovative community solar programs, and the state's largest utility company, Xcel Energy, also offers a great low-income solar program.
All told, the North Star State loves the sun, and going solar here can be a great financial decision, too! Read on to learn more about the ins and outs of solar in Minnesota.
Learn what solar incentives are available to Minnesota homeowners
See what Minnesota solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Minnesota solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Minnesota
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume. If you run a surplus, you get credit for it.
Minnesota’s net metering law applies to all utilities and requires them to provide net metering for all solar power systems less than 40 kW. The 40-kW limit should cover virtually all residential solar systems, which typically come in somewhere around 5-kW for a single-family home.
While commercial and industrial customers may not be able to take advantage of net metering, it’s a pretty sweet deal for your residential system. You get compensation for any surplus you generate at the “average retail utility energy rate.” Minnesota has a specific formula for determining what that is, but it basically amounts to the same as the retail rate you pay every month for electricity. Compensation may come as either actual payment (i.e. a check) or a credit on your future bills.
Because Minnesota has such a strong RPS, there are a number of great utility rebates offered for solar. Most are paid as a simple calculation of dollars-per-kilowatt of generating capacity, but there's one that's different.
Minnesota Power offers a solar rebate program based on your first-year estimated production. The current incentive is $0.083 per kilowatt-hour (kWh), and with an average 5-kW system pumping out about 6,200 kWh, you can expect around $5,150 back as a rebate. That's a great incentive, but they disappear fast, so get in touch with a solar expert near you today and get the ball rolling on that rebate!
If you’re lucky enough to be an Xcel customer in Minnesota, you should definitely sign up for their Solar*Rewards Program. It pays you on an ongoing basis for the amount of kwh you produce with your solar panels.
You sign a contract to give your renewable energy certificates to Xcel for 20 years. They will pay you for the first 10 years at a rate of $.07/kwh, which is huge!
On an average sized 6kW system, you can expect to reap about $700 annually or $6,500 over those ten years.
Income-qualified Xcel customers who receive benefits under the Low-Income Heating Assistance Program (LIEAP) or Weatherization Assistance Program (WAP) can get a whopping $2,000 per kilowatt solar rebate from Xcel. If you make about $52,000 or less for a family of 4, you can qualify. The system must be sized to a maximum of 120% of your usage. For an average sized 6kW system, that amounts to $12,000!
A newly-installed solar power system is 100% exempt from associated property taxes. When a solar power system is installed, your home value rises significantly – twenty times estimated annual electricity savings. With the Minnesota property tax exemption in place, you’ll never pay any taxes on that home value jump.
The purchase of your solar power system in Minnesota is 100% exempt from sales tax. That saves you almost 7% up front.
Showing data for:
Prices based on a 10.1kW system, after 30% federal tax credit
26 solar companies in Minnesota provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 441 Reviews
Solar 2023, 2 weeks ago
My experience with All Energy Solar was excellent. Each person I had contact with was pleasant and helpful. I was kept up to date throughout the various stages including the sale, design, permitting, installation and follow-up. Molly was patient and informative throughout the sale and design process. Carlo has kept me apprised throughout the permitting, installation and approval process by checking in every 2 weeks. Installers were professional, courteous and on time. The inspections by local officials and the utility were approved without any issues.
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Solar 2023, 2 weeks ago
My experience with All Energy Solar was excellent. Each person I had contact with was pleasant and helpful. I was kept up to date throughout the various stages including the sale, design, permitting, installation and follow-up. Molly was patient and informative throughout the sale and design process. Carlo has kept me apprised throughout the permitting, installation and approval process by checking in every 2 weeks. Installers were professional, courteous and on time. The inspections by local officials and the utility were approved without any issues.
4.82 76 Reviews
Steve and Percy Lingen, 2 weeks ago
The company delivered on everything they promised. It is so nice to have the system up and running. The installers were GREAT! They were very respectful of our time and property.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
Steve and Percy Lingen, 2 weeks ago
The company delivered on everything they promised. It is so nice to have the system up and running. The installers were GREAT! They were very respectful of our time and property.
4.72 33 Reviews
Ground mount in SE MN, over 1 month
I admit, there were only 2 'bidders' for our home project. (1) Solar Connections and (2) me. I really wanted to design and install our own ground mount system myself. But I also knew, from many hours of research, from experience wiring this property and a glowing recommendation from a trusted friend in the power distribution business, that I had better get at least 1 other 'competing' bid. I fully expected that the bid would be too expensive for the size of the system I wanted. But once I saw it and figured what I would have to pay to get comparable hardware (that took me a while), the profit built into the bid seemed very fair. That, coupled with the fact that we are always happy to support local business and their estimated time to get the system up and running was way shorter than the 'preferred vendor... me' we signed up. Super glad we did. The whole process from sales to commissioning was low pressure, informative, VERY flexible given we decided midstream to upgrade some panels to both meet code today and be ready for battery chargers in the near future.
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Average cost (5kW system)
$20,550 ($4.11 per watt)
Ground mount in SE MN, over 1 month
I admit, there were only 2 'bidders' for our home project. (1) Solar Connections and (2) me. I really wanted to design and install our own ground mount system myself. But I also knew, from many hours of research, from experience wiring this property and a glowing recommendation from a trusted friend in the power distribution business, that I had better get at least 1 other 'competing' bid. I fully expected that the bid would be too expensive for the size of the system I wanted. But once I saw it and figured what I would have to pay to get comparable hardware (that took me a while), the profit built into the bid seemed very fair. That, coupled with the fact that we are always happy to support local business and their estimated time to get the system up and running was way shorter than the 'preferred vendor... me' we signed up. Super glad we did. The whole process from sales to commissioning was low pressure, informative, VERY flexible given we decided midstream to upgrade some panels to both meet code today and be ready for battery chargers in the near future.
4.49 70 Reviews
Rosann , 5 days ago
Everlight Solar is a great company to work with. Every interaction with them has been positive. We needed our roof shingles replaced and they came to remove the panels when requested and promptly put them back on.
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Rosann , 5 days ago
Everlight Solar is a great company to work with. Every interaction with them has been positive. We needed our roof shingles replaced and they came to remove the panels when requested and promptly put them back on.
4.47 1,736 Reviews
Jonathan Lowe, 4 days ago
I was quite pleased with my solar panel purchase from Blue Raven and overjoyed to hear they are now offering battery options as well. Getting set up for my solar batteries was a breeze. Chris Postin facilitated the process from start to finish and made things extremely easy. He was professional, courteous and more than happy to answer all of my questions. Looking forward to my install. Highly recommended!!!
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Jonathan Lowe, 4 days ago
I was quite pleased with my solar panel purchase from Blue Raven and overjoyed to hear they are now offering battery options as well. Getting set up for my solar batteries was a breeze. Chris Postin facilitated the process from start to finish and made things extremely easy. He was professional, courteous and more than happy to answer all of my questions. Looking forward to my install. Highly recommended!!!
4.42 22 Reviews
Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
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Anonymous, over 1 month
Midwest installed an 18.9 kw ground mounted system for us that was an especially challenging set of circumstances. Without going into all the details, let's just say they went above and beyond to do whatever it took to make this work, and stayed at their quoted amount even after a lot of challenges. Top notch organization!
4.32 17 Reviews
Wade, 3 weeks ago
Very nice people who you can trust.
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Average cost (5kW system)
$19,050 ($3.81 per watt)
Wade, 3 weeks ago
Very nice people who you can trust.
4.32 13 Reviews
John K Remer, over 1 month
We love our system! It is amazing how much power it produces, even in winter. Great sales and installation process - this was needed because we were not on-site for most of the work. Very thorough and professional. Turnkey system with REAL Solar and no surprises.
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John K Remer, over 1 month
We love our system! It is amazing how much power it produces, even in winter. Great sales and installation process - this was needed because we were not on-site for most of the work. Very thorough and professional. Turnkey system with REAL Solar and no surprises.
Tom Loeffler, over 1 month
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4.29 7 Reviews
Cinevzn Media, over 1 month
We were very happy with the service Matt provided. It was honestly surprised how much solar reduced ours in our annual savings. Overall, very happy we went with Optimum!
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Cinevzn Media, over 1 month
We were very happy with the service Matt provided. It was honestly surprised how much solar reduced ours in our annual savings. Overall, very happy we went with Optimum!