Solar Power Rebates, Tax Credits and Solar Panel Incentives in Minnesota; 2012 Update
August 2012 update: The PUC has recently made some adjustments to its net metering rules, these adjustments relate to how much electricity a customer must consume in order to qualify for net metering. It has also deemed that a systems capacity should be based on its average output over a 15 minute interval.
Minnesota's RPS or Renewable Portfolio Standard
Minnesota have created a Renewable Portfolio Standard ("RPS"); targets have been set at different levels for the different electricity Utilities. "The RPS for Xcel Energy requires that eligible renewable electricity account for 30% of total retail electricity sales (including sales to retail customers of a distribution utility to which Xcel Energy provides wholesale service) in Minnesota by 2020. Of the 30% renewables required of Xcel Energy in 2020, "at least" 25% must be generated by wind-energy or solar energy systems, with solar limited to no more than 1% of the requirement. The provision adding solar to this minimum resource standard -- the 25% mandate was formerly for wind energy only -- was made by S.B. 550 in May 2009. In effect, this means that the wind standard is at least 24%, solar may contribute up to 1%, and the "remaining" 5% may be generated using other eligible technologies." "The standard for other Minnesota utilities requires that eligible renewable electricity account for 25% of retail electricity sales to retail customers (and to retail customers of a distribution utility to which the one or more of the utilities provides wholesale service) in Minnesota by 2025." To help your understanding we distinguish the rebates and incentives available for solar electricity panels into incentives that reduce the up-front cost and incentives that increase the income and savings from the system over time.
Federal Tax Credit
The single most significant financial incentive for your solar power system in Minnesota is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system For more information on this visit out page "The 30% federal tax credit for residential solar power systems" Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar panel system.
Minnesota State Rebates
Minnesota has several local programs most being offered and run by the various local utilities or energy retailers. However the main Utilities rebate program has been suspended since 2011, the Minnesota legislature is currently reviewing the current rebate and incentives systems. There is an announcement due in July 2012 in relation to the state Utilities rebate program and possibly other things such as the RPS (Renewable Portfolio Standard) If you want to get a handle on what's going on in Minnesota why not get some quotes from local experts, just click "here".
Net Metering means that your electricity provider will monitor how much power you consume from the grid and how much power you generate and send back to the grid. This can be achieved by the installation of a bio-directional meter that separately records what you buy from the grid and what you push back into the grid. Some Net Metering systems don't require a new meter, the best way to find out about net metering in your state is to talk to local solar professionals, click "here" and we can make that happen.
Minnesota State Tax Exemptions and State Tax Credits
In Minnesota you receive a 100% property tax exemption on the solar equipment you install on your property, but there are rules and regulations that must be complied with, solar customers need to look into this. Thankfully, we know some experts in your area. Just fill out the form below and one of them will be more than happy to go over all those details and help you craft a plan to get the absolute most out of a solar power system for your home. Your quotes from local solar installers through this site are 100% free and without obligation..
Minnesota Solar Incentives and investment case: Summary May 2012
Minnesota has the building blocks in place for quite a good overall package of incentives and rebates. It can go a lot further as there are a lot of states that have a better overall package. Remember, Warren Buffet's compound annual return on investment over 50 years is only around 20% and with a solar power system you are likely to exceed this within only 5-6 years. From then on the percentage return you get each year just goes up and up as power prices go up and up over the next 30 years So if you have read this far and are really interested about getting solar power for your home why not click "here" and get some quotes from local solar professionals.