Summary of Minnesota solar incentives 2022
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.
On this page, you can:
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Learn what solar incentives are available to Minnesota homeowners
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See what Minnesota solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Minnesota solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Minnesota
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Minnesota
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.
Minnesota solar rebates
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!
Xcel's Solar*Rewards performance payments program
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.
Xcel's low-income solar program
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!
Tax exemptions
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.
Cost of solar panels in your part of Minnesota after all applicable solar incentives
Showing data for:
Prices based on a 10.1kW system, after 26% federal tax credit
Solar prices near you
Payback period
10.4-12.7 years
Net profit (savings less system cost)
$33,842-$41,363
Average size system installed in MN in 2022
10.1kW
Solar panel cost calculator
Best 10 solar companies in Minnesota
27 solar companies in Minnesota provide pricing on SolarReviews. Here are the best rated companies near you.
4.88 377 Reviews
Latest review
Bran Bishop, 2 weeks ago
All Energy Solar won Me over after I did months of research on all the nitty-gritty of how solar operated and what components preformed what functions by listening to what I wanted and understanding that they needed to provide me with exactly what wanted my system to comprise of. Molly (Sales) spent hours, multiple phone calls and 3-4 redesigns of my particular project. My solar battery backup (images) had to meet a minimum standard of backup and generation, while fitting into a specific wall space. Once we determined my project was able to be accomplished, we transitioned to Carlo (Project Manager) who took the rains of making my project a reality. Once the Electricians who performed the installation arrived (don't know if they want to be named) they adapted to my specific requirements (wiring / backup) and overcame limitations of available space. (Images) And finally, Murphy's Law would happen when (1 of 70ish) components malfunctiond. Carlo remained in contact with me constantly throughout my project from inception to paperwork to Installation to correction or equipment to closeout. Molly was still in contact at all times after her portion of my project was complete and available to assist with ensuing quality of service was upheld. I'm a Veteran who has been a Project Manager overseas and has delt with Contractors and frankly, slimy individuals who just care about the money. This company never gave me a reason to question them and I never felt as if I couldn't walk away at anytime. (Especially the legal contract paperwork part. Other companies I dealt with previously for solar installation options wanted signatures and legal binding contracts prior to discussion of what I actually wanted and ensuring I would get it the way I wanted it.) I endorse business with this company, because I got precisely what I wanted and how / where I wanted it and for my intended purpose.
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Latest review
Bran Bishop, 2 weeks ago
All Energy Solar won Me over after I did months of research on all the nitty-gritty of how solar operated and what components preformed what functions by listening to what I wanted and understanding that they needed to provide me with exactly what wanted my system to comprise of. Molly (Sales) spent hours, multiple phone calls and 3-4 redesigns of my particular project. My solar battery backup (images) had to meet a minimum standard of backup and generation, while fitting into a specific wall space. Once we determined my project was able to be accomplished, we transitioned to Carlo (Project Manager) who took the rains of making my project a reality. Once the Electricians who performed the installation arrived (don't know if they want to be named) they adapted to my specific requirements (wiring / backup) and overcame limitations of available space. (Images) And finally, Murphy's Law would happen when (1 of 70ish) components malfunctiond. Carlo remained in contact with me constantly throughout my project from inception to paperwork to Installation to correction or equipment to closeout. Molly was still in contact at all times after her portion of my project was complete and available to assist with ensuing quality of service was upheld. I'm a Veteran who has been a Project Manager overseas and has delt with Contractors and frankly, slimy individuals who just care about the money. This company never gave me a reason to question them and I never felt as if I couldn't walk away at anytime. (Especially the legal contract paperwork part. Other companies I dealt with previously for solar installation options wanted signatures and legal binding contracts prior to discussion of what I actually wanted and ensuring I would get it the way I wanted it.) I endorse business with this company, because I got precisely what I wanted and how / where I wanted it and for my intended purpose.
4.81 59 Reviews
Latest review
Jesse Robertson, over 1 month
My wife and I decided to have solar panels installed last year and got bids from 3 companies. We found MN Solar to be the easiest to work with and had a great product. We are so happy with our choice. MN Solar did a great job of being clear and transparent about the options available and the pricing. They worked with our electric utility and got us all of the incentives available. The installation was done quickly, correctly, and professionally. Now that our solar array is live, we can track our electric production with a phone app. It’s great to be able to see how our system is doing at any time from anywhere. Overall we are extremely pleased with the solar array at our home, and are so glad that we chose MN Solar. We highly recommend MN Solar for your residential solar project.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
Latest review
Jesse Robertson, over 1 month
My wife and I decided to have solar panels installed last year and got bids from 3 companies. We found MN Solar to be the easiest to work with and had a great product. We are so happy with our choice. MN Solar did a great job of being clear and transparent about the options available and the pricing. They worked with our electric utility and got us all of the incentives available. The installation was done quickly, correctly, and professionally. Now that our solar array is live, we can track our electric production with a phone app. It’s great to be able to see how our system is doing at any time from anywhere. Overall we are extremely pleased with the solar array at our home, and are so glad that we chose MN Solar. We highly recommend MN Solar for your residential solar project.
4.74 212 Reviews
Latest review
John, 4 days ago
I was very impressed with Sun Bader Solar, it was a great experience from the first sales call to now when we are just monitoring our energy production. They took care of all the true hastles of a project like this: 1.) All the paperwork with the city - minus signatures, of course. 2.) All the paperwork for financing - minus signatures, of course. 3.) Installation clean up - the install team was fantastic at picking up after themselves, I only found 1 bolt and small piece of bracket in the yard, I make a way worse mess than that anytime I do a big project - especially on a roof. They had one team member who's job was, among other things to make sure things were kept clean, this was much appreciated. Since install we have enjoyed watching the energy roll in on the app and with helpful emails from the Sun Badger Team. All in all great work and workmanship.
Read more
Latest review
John, 4 days ago
I was very impressed with Sun Bader Solar, it was a great experience from the first sales call to now when we are just monitoring our energy production. They took care of all the true hastles of a project like this: 1.) All the paperwork with the city - minus signatures, of course. 2.) All the paperwork for financing - minus signatures, of course. 3.) Installation clean up - the install team was fantastic at picking up after themselves, I only found 1 bolt and small piece of bracket in the yard, I make a way worse mess than that anytime I do a big project - especially on a roof. They had one team member who's job was, among other things to make sure things were kept clean, this was much appreciated. Since install we have enjoyed watching the energy roll in on the app and with helpful emails from the Sun Badger Team. All in all great work and workmanship.
4.72 33 Reviews
Latest review
Ground mount in SE MN, 2 days ago
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.
Read more
Average cost (5kW system)
$20,550 ($4.11 per watt)
Latest review
Ground mount in SE MN, 2 days ago
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.
4.62 50 Reviews
Latest review
Jay Worden, 4 days ago
We have always been very concerned about the environment and have done all we could to make our home energy efficient including installing a Geo-Thermal system in our home several years ago. Salesman Mark Nelson arrived at our door late last summer and thoroughly explained Everlight Solar and how it would help reduce our electric bill and help with our environment. Every aspect of the whole process from beginning to end went very smoothly. Matt and his crew for installing the panels were terrific and it only took a few hours. Our system will be turned on later this month and we are looking forward to being more green and even more conscious of our environment. At this point, we would recommend Everlight Solar to others that might be interested.
Read more
Latest review
Jay Worden, 4 days ago
We have always been very concerned about the environment and have done all we could to make our home energy efficient including installing a Geo-Thermal system in our home several years ago. Salesman Mark Nelson arrived at our door late last summer and thoroughly explained Everlight Solar and how it would help reduce our electric bill and help with our environment. Every aspect of the whole process from beginning to end went very smoothly. Matt and his crew for installing the panels were terrific and it only took a few hours. Our system will be turned on later this month and we are looking forward to being more green and even more conscious of our environment. At this point, we would recommend Everlight Solar to others that might be interested.
4.57 62 Reviews
Latest review
Jesse Hennum, over 1 month
Energy concepts developed a great plan for our cabin and due to unexpected events beyond their control had to fight through some pretty huge obstacles in this pandemic year. Despite those challenges they completed a beautiful 12 kw project in the expected time frame. Russel is extremely responsive for all questions and concerns.
Read more
Latest review
Jesse Hennum, over 1 month
Energy concepts developed a great plan for our cabin and due to unexpected events beyond their control had to fight through some pretty huge obstacles in this pandemic year. Despite those challenges they completed a beautiful 12 kw project in the expected time frame. Russel is extremely responsive for all questions and concerns.
4.46 16 Reviews
Latest review
M.T. Mondovi, WI, over 1 month
Winona's quote proved the best value of three different quotes I received. They were professional and timely throughout the whole process. I found them to be honest and straightforward. I appreciated the staff's willingness to explain various details before, during and after installation. All members of the team gave the same professional courtesy and personal touch, which I felt confirmed a company with a great culture of service. I would not hesitate to recommend Winona Renewable Energy, in fact I would encourage anyone interested in solar to go with Winona Renewable!
Read more
Average cost (5kW system)
$19,050 ($3.81 per watt)
Latest review
M.T. Mondovi, WI, over 1 month
Winona's quote proved the best value of three different quotes I received. They were professional and timely throughout the whole process. I found them to be honest and straightforward. I appreciated the staff's willingness to explain various details before, during and after installation. All members of the team gave the same professional courtesy and personal touch, which I felt confirmed a company with a great culture of service. I would not hesitate to recommend Winona Renewable Energy, in fact I would encourage anyone interested in solar to go with Winona Renewable!
4.42 11 Reviews
Latest review
Pete M, over 1 month
The installers were quick and professional. Customer service is excellent. Any questions were answered and easy to understand.
Read more
Latest review
Pete M, over 1 month
The installers were quick and professional. Customer service is excellent. Any questions were answered and easy to understand.
4.42 8 Reviews
Latest review
Venkat, over 1 month
Mark and Ben’s team did an excellent job on the solar installation at our home late 2019 and early 2020. We have been super happy with their professionalism and how they have explained all options to us on our journey. I would recommend the live wire guys to any body that is looking at Solar.
Read more
Latest review
Venkat, over 1 month
Mark and Ben’s team did an excellent job on the solar installation at our home late 2019 and early 2020. We have been super happy with their professionalism and how they have explained all options to us on our journey. I would recommend the live wire guys to any body that is looking at Solar.
4.42 22 Reviews
Latest review
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!
Read more
Latest review
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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