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.
Minnesotans who participate in community solar programs get to use the unique Value of Solar tariff, which values solar energy based on its economic and it's environmental, and societal benefits as well. Though only available for community solar right now, this methodology for valuing solar energy for its holistic value may become popular for homeowners as more utilities seek to change net metering.
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
25 solar companies in Minnesota provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 469 Reviews
Chris Smith, over 1 month
We first started our adventure with All Energy Solar back in 2020. Carlo did a great job at walking us through everything virtually, from estimating our solar panel output, install cost, and state rebates. We had our install completed in September of 2020 by a very courteous and professional crew. All inspections passed, system worked fine, and we were able to stop paying National Grid after a few months. Fast forward to 2023 - we were in the market for some solar backup batteries. We live in an area prone to power outages due to downed tree branches, so it is common for us to lose power for a couple hours several times a year. Solar is great, but you're still required to be tied to the grid to keep the lights on. Carlo again walked us through the process, making sure we got a system that meets our needs without overselling. All Energy Solar's end of the install went great, as did the inspections. Our only hang-up was that MA state fire code requires a fire resistant closet to be built around the batteries, which meant hiring a different contractor to do that part of the job. This slowed down the process by a few months, but this shouldn't be held against All Energy since this part wasn't affiliated with them. They were quite good about checking up on the progress and trying to help as best they could through all that. Anyways, our batteries are working, everything is up to code, and we run off battery power through the night while retaining a few hours of backup power in case on an outage. Overall, both installs were exactly what we wanted, everything stayed within our budget and worked exactly as we wanted. All our interactions with the staff, whether over the phone or in person, were great. Everything seems to meet our needs for now but if we ever need another upgrade, we know where to look!
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Chris Smith, over 1 month
We first started our adventure with All Energy Solar back in 2020. Carlo did a great job at walking us through everything virtually, from estimating our solar panel output, install cost, and state rebates. We had our install completed in September of 2020 by a very courteous and professional crew. All inspections passed, system worked fine, and we were able to stop paying National Grid after a few months. Fast forward to 2023 - we were in the market for some solar backup batteries. We live in an area prone to power outages due to downed tree branches, so it is common for us to lose power for a couple hours several times a year. Solar is great, but you're still required to be tied to the grid to keep the lights on. Carlo again walked us through the process, making sure we got a system that meets our needs without overselling. All Energy Solar's end of the install went great, as did the inspections. Our only hang-up was that MA state fire code requires a fire resistant closet to be built around the batteries, which meant hiring a different contractor to do that part of the job. This slowed down the process by a few months, but this shouldn't be held against All Energy since this part wasn't affiliated with them. They were quite good about checking up on the progress and trying to help as best they could through all that. Anyways, our batteries are working, everything is up to code, and we run off battery power through the night while retaining a few hours of backup power in case on an outage. Overall, both installs were exactly what we wanted, everything stayed within our budget and worked exactly as we wanted. All our interactions with the staff, whether over the phone or in person, were great. Everything seems to meet our needs for now but if we ever need another upgrade, we know where to look!
4.78 79 Reviews
Al Ickler, over 1 month
We just passed our one year anniversary of having solar panels placed on our roof with MN Solar. What a great company to work with! We got bids and for exactly the same panels and work, they were considerably less expensive. The work they performed was excellent and everyone was great to work with. Responsive and timely. When we were doing some additional work this summer on our garage and we had a question about power, they responded within an hour to our phone call. We would highly recommend.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
Al Ickler, over 1 month
We just passed our one year anniversary of having solar panels placed on our roof with MN Solar. What a great company to work with! We got bids and for exactly the same panels and work, they were considerably less expensive. The work they performed was excellent and everyone was great to work with. Responsive and timely. When we were doing some additional work this summer on our garage and we had a question about power, they responded within an hour to our phone call. We would highly recommend.
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.
4.62 19 Reviews
Micah, over 1 month
The Centauri team did a great job throughout the project. Everything went well, install looks good, and pricing was very competitive. I recommend!
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Micah, over 1 month
The Centauri team did a great job throughout the project. Everything went well, install looks good, and pricing was very competitive. I recommend!
4.53 84 Reviews
Mike , over 1 month
The installation started on time and was completed quickly. Great installation crew !
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Mike , over 1 month
The installation started on time and was completed quickly. Great installation crew !
4.49 1,857 Reviews
James P, over 1 month
Great experience from Sales to design, installation and interconnection.
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James P, over 1 month
Great experience from Sales to design, installation and interconnection.
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, over 1 month
Very nice people who you can trust.
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Average cost (5kW system)
$19,050 ($3.81 per watt)
Wade, over 1 month
Very nice people who you can trust.
Tom Loeffler, over 1 month
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4.32 14 Reviews
Ann H, over 1 month
REAL Solar was a joy to work with, from initial contact with the office to final commissioning. During project development they made sure I understood what the terms meant and how the system would work; during installation the crew was professional and friendly, and answered all my (many) questions. There was a long lag time between signing the contract and getting on line, but that was expected, and I received regular communication throughout, to keep me informed of the schedule. Whether I needed to talk to the system designer, the project manager, the electrician, or the office manager, I received a quick and knowledgeable response. Our case was unique in that we contracted with REAL Solar in 2022, but didn't get on the install schedule until 2023. During that time, REAL Solar chose not to renew their license in North Dakota, but instead of abandoning me, they contracted with a solar installer in the state to help complete the project - definitely above and beyond! I can't say enough good things about our experience, and I highly recommend the folks at REAL Solar!
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Ann H, over 1 month
REAL Solar was a joy to work with, from initial contact with the office to final commissioning. During project development they made sure I understood what the terms meant and how the system would work; during installation the crew was professional and friendly, and answered all my (many) questions. There was a long lag time between signing the contract and getting on line, but that was expected, and I received regular communication throughout, to keep me informed of the schedule. Whether I needed to talk to the system designer, the project manager, the electrician, or the office manager, I received a quick and knowledgeable response. Our case was unique in that we contracted with REAL Solar in 2022, but didn't get on the install schedule until 2023. During that time, REAL Solar chose not to renew their license in North Dakota, but instead of abandoning me, they contracted with a solar installer in the state to help complete the project - definitely above and beyond! I can't say enough good things about our experience, and I highly recommend the folks at REAL Solar!