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
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.
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 26% federal tax credit
27 solar companies in Minnesota provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 399 Reviews
Adam Rudolph, 1 week ago
From the first call with Rolf, a consultant, through the installation, All Energy Solar was one of the best customer experiences I have ever had for home investments. The project was managed extremely well. I was in communication with Brandon, the project manager, for every milestone. All Energy Solar created a great design which blends in well with our roof. We get compliments from everyone who sees it. If you are considering solar, you need to talk with All Energy Solar.
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Adam Rudolph, 1 week ago
From the first call with Rolf, a consultant, through the installation, All Energy Solar was one of the best customer experiences I have ever had for home investments. The project was managed extremely well. I was in communication with Brandon, the project manager, for every milestone. All Energy Solar created a great design which blends in well with our roof. We get compliments from everyone who sees it. If you are considering solar, you need to talk with All Energy Solar.
4.80 64 Reviews
anelson, 3 days ago
I was working with another highly reputable solar company and almost signed the contract. I decided to get 1 more quote to make sure their equipment and prices were in-line. I sent an email to MN Solar and they scheduled a consultation within a day. I talked with the owner and designer (Kim & Leah), and they put together a proposal that used better materials, was more efficient, fit my roof better, and was about 10% cheaper that the other contractor. I also appreciated that they didn't try to bury excessive "administrative fees" into a low interest loan like the other contractor did. It was clear that they were not just sales people...they actually design the systems and know what they're talking about, so I decided to go with MN Solar. We ran into a hiccup just before the installation began that caused a slight delay. My electrical company (Dakota Electric) was not certain I'd be able to keep my off-peak rates for my off-peak heat pump and EV Charger equipment. Solar was still pretty new to Dakota Electric (May 2021), so I needed verification from Dakota Electric before anything moved forward. Kim, Leah, and their Master Electrician spent many hours with Dakota Electric to ensure everything was set up correctly, and I was able to keep my off-peak rates. The amount of effort they provided was impressive. The entire install took about 5-6 days (it was really hot out so they needed to quit early afternoon to avoid damaging the shingles). The crew that did the install was a really good group of guys. They worked hard and did a great job, but they were also extremely friendly and fun to chat with. MN Solar did great work at a very reasonable price. They took care of all the paperwork and permits, and made the whole process effortless for me. Their customer service and follow up were great too. If you're looking at getting solar installed, make sure you get 2-3 quotes so you can compare costs, equipment, and contractors. Just make sure MN Solar is one of the contractors because they are really good.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
anelson, 3 days ago
I was working with another highly reputable solar company and almost signed the contract. I decided to get 1 more quote to make sure their equipment and prices were in-line. I sent an email to MN Solar and they scheduled a consultation within a day. I talked with the owner and designer (Kim & Leah), and they put together a proposal that used better materials, was more efficient, fit my roof better, and was about 10% cheaper that the other contractor. I also appreciated that they didn't try to bury excessive "administrative fees" into a low interest loan like the other contractor did. It was clear that they were not just sales people...they actually design the systems and know what they're talking about, so I decided to go with MN Solar. We ran into a hiccup just before the installation began that caused a slight delay. My electrical company (Dakota Electric) was not certain I'd be able to keep my off-peak rates for my off-peak heat pump and EV Charger equipment. Solar was still pretty new to Dakota Electric (May 2021), so I needed verification from Dakota Electric before anything moved forward. Kim, Leah, and their Master Electrician spent many hours with Dakota Electric to ensure everything was set up correctly, and I was able to keep my off-peak rates. The amount of effort they provided was impressive. The entire install took about 5-6 days (it was really hot out so they needed to quit early afternoon to avoid damaging the shingles). The crew that did the install was a really good group of guys. They worked hard and did a great job, but they were also extremely friendly and fun to chat with. MN Solar did great work at a very reasonable price. They took care of all the paperwork and permits, and made the whole process effortless for me. Their customer service and follow up were great too. If you're looking at getting solar installed, make sure you get 2-3 quotes so you can compare costs, equipment, and contractors. Just make sure MN Solar is one of the contractors because they are really good.
4.74 238 Reviews
Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
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Charlie B, 1 week ago
I had a very positive experience with Sun Badger, from the beginning of the process through to to interconnection. My sales person (Jim) was super helpful and accommodating in answering my many questions, and was great about guiding me towards the right solution for my needs, rather than just maximizing my array size. Then post-sale Sun Badger was great about keeping me up to date on progress and when things were going to be happening. The only hiccups I had in the process were due to the utility company being slow to schedule and sometimes not communicating things, but that's certainly not Sun Badger's fault. After interconnection they also did a great job of getting me up and running with the monitoring app. Based on my experience, I would enthusiastically recommend working with Sun Badger for solar needs.
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 55 Reviews
Scott Patz, over 1 month
Jason Grecula, Steve Dettelbach, and the crew did a spectacular job installing our 82-panel installation. Thanks for staying late to resolve some last-minute items. Kyle Collins was our sales agent. He was very prompt at answering all of our questions and researching anything else we needed. Everyone we have encountered has been courteous, cheerful, and respectful. We are so excited to go whole-house solar! Thanks, Everlight.
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Scott Patz, over 1 month
Jason Grecula, Steve Dettelbach, and the crew did a spectacular job installing our 82-panel installation. Thanks for staying late to resolve some last-minute items. Kyle Collins was our sales agent. He was very prompt at answering all of our questions and researching anything else we needed. Everyone we have encountered has been courteous, cheerful, and respectful. We are so excited to go whole-house solar! Thanks, Everlight.
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 8 Reviews
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.
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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
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!
4.38 12 Reviews
Heather, over 1 month
REAL Solar installed our system last summer and it has been performing better than they said. They made the whole process very easy and were great to work with. Highly qualified and very friendly professionals!
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Heather, over 1 month
REAL Solar installed our system last summer and it has been performing better than they said. They made the whole process very easy and were great to work with. Highly qualified and very friendly professionals!