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.
4.82 429 Reviews
JM, 1 week ago
All Energy Solar was transparent through the whole process from sales to design, installation to all the approvals and state/local bureaucracy. They did a great job navigating my town's special requirements, Eversource's slowdowns, etc. My rep Carlo was helpful, responsive, and friendly and I'm going to miss getting update calls from him because he's so positive and always brought a smile to my day. The solar panels work great and also look really sleek.
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JM, 1 week ago
All Energy Solar was transparent through the whole process from sales to design, installation to all the approvals and state/local bureaucracy. They did a great job navigating my town's special requirements, Eversource's slowdowns, etc. My rep Carlo was helpful, responsive, and friendly and I'm going to miss getting update calls from him because he's so positive and always brought a smile to my day. The solar panels work great and also look really sleek.
4.78 66 Reviews
Jim ODonnell, over 1 month
The entire team did a fantastic job of walking us through several scenarios and helped us make an informed decision. The crew that installed the solar was professional, courteous and cleaned up well. I would highly recommend MN Solar and More.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
Jim ODonnell, over 1 month
The entire team did a fantastic job of walking us through several scenarios and helped us make an informed decision. The crew that installed the solar was professional, courteous and cleaned up well. I would highly recommend MN Solar and More.
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.
4.46 16 Reviews
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!
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Average cost (5kW system)
$19,050 ($3.81 per watt)
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!
4.46 1,672 Reviews
Ben, 6 days ago
The initial/sales process was friendly, informative and no pressure. The stated timeline of 45 days was nowhere near accurate and to push progress forward, I had to take on the roll of middle man between BlueRaven and CORE electric. These interactions cost me personal time, energy and effort, because rather than taking accountability for their own lack of communication, both sides were blaming the other. Once everything was approved, the installation was quick. The installation crew left trash around the house even after I specifically called it out to them on day one. Inspection and needed rework were rescheduled no less than four times. Here I am almost 7 months later and I still don't have a functioning system. Blue Raven didn't resubmit the updated installation diagram to CORE, after the location of the PV panels was changed. Because of this error, CORE hasn't approved the system and the entire application needs to be resubmitted. I'm beyond frustrated at this point.
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Ben, 6 days ago
The initial/sales process was friendly, informative and no pressure. The stated timeline of 45 days was nowhere near accurate and to push progress forward, I had to take on the roll of middle man between BlueRaven and CORE electric. These interactions cost me personal time, energy and effort, because rather than taking accountability for their own lack of communication, both sides were blaming the other. Once everything was approved, the installation was quick. The installation crew left trash around the house even after I specifically called it out to them on day one. Inspection and needed rework were rescheduled no less than four times. Here I am almost 7 months later and I still don't have a functioning system. Blue Raven didn't resubmit the updated installation diagram to CORE, after the location of the PV panels was changed. Because of this error, CORE hasn't approved the system and the entire application needs to be resubmitted. I'm beyond frustrated at this point.
4.45 57 Reviews
Halsted, over 1 month
Working with Everlight Solar was a great experience! Especially, working with Graham Gunderson. I felt he understood what we wanted to accomplish with adding solar panels to our home and he tailored the project to our needs. There was great communication throughout the process which was important for us. I highly recommend this company and I have referred them to several friends and family!
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Halsted, over 1 month
Working with Everlight Solar was a great experience! Especially, working with Graham Gunderson. I felt he understood what we wanted to accomplish with adding solar panels to our home and he tailored the project to our needs. There was great communication throughout the process which was important for us. I highly recommend this company and I have referred them to several friends and family!
4.42 11 Reviews
Pete M, over 1 month
The installers were quick and professional. Customer service is excellent. Any questions were answered and easy to understand.
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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 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 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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