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.
C G, over 1 month
Great experience!
4.76 85 Reviews
Wish it was better, over 1 month
We contacted MN Solar to install a home solar array and battery backup. After a bit of research and a recommendation from a friend, I chose to go with the SolarEdge system. I liked that it is one of the few systems that wasn't constantly switching from DC to AC and back again with inverters at the panels, between panels and the backup battery, then from the backup battery back to the house. Other than our local utility provider's glacial approval process, the install of the system went well. MN Solar was knowledgeable and professional. The 10kWh battery has been a problem from day one. Once it was installed, a software glitch prevented it from being recognized by the system. MN Solar, did multiple visits to our house and hours on the phone with SolarEdge to diagnosis and fix the problem. It was determined by SolarEdge that our battery wasn't functioning. That was October 2025. Here we are at March 2026 and we still don't have a replacement or any idea when/if one is coming. MN Solar has copied me on the weekly emails asking for updates on the RMA for a tracking number. SolarEdge's response is something to the effect of, "We will be in touch next week with your tracking number." After 6 months of waiting and already paying for a $41k system + battery, my patience is at an end. Now, comes the "fun" of trying to get a refund for this bricked battery sitting in my basement. The app so far has worked most of the time. There have been some bugs a few days with reporting but nothing of note. The array works well. If you are considering SolarEdge, my suggestion is don't get their battery. Everything else is fine.
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Average cost (5kW system)
$16,500 ($3.30 per watt)
Wish it was better, over 1 month
We contacted MN Solar to install a home solar array and battery backup. After a bit of research and a recommendation from a friend, I chose to go with the SolarEdge system. I liked that it is one of the few systems that wasn't constantly switching from DC to AC and back again with inverters at the panels, between panels and the backup battery, then from the backup battery back to the house. Other than our local utility provider's glacial approval process, the install of the system went well. MN Solar was knowledgeable and professional. The 10kWh battery has been a problem from day one. Once it was installed, a software glitch prevented it from being recognized by the system. MN Solar, did multiple visits to our house and hours on the phone with SolarEdge to diagnosis and fix the problem. It was determined by SolarEdge that our battery wasn't functioning. That was October 2025. Here we are at March 2026 and we still don't have a replacement or any idea when/if one is coming. MN Solar has copied me on the weekly emails asking for updates on the RMA for a tracking number. SolarEdge's response is something to the effect of, "We will be in touch next week with your tracking number." After 6 months of waiting and already paying for a $41k system + battery, my patience is at an end. Now, comes the "fun" of trying to get a refund for this bricked battery sitting in my basement. The app so far has worked most of the time. There have been some bugs a few days with reporting but nothing of note. The array works well. If you are considering SolarEdge, my suggestion is don't get their battery. Everything else is fine.
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.
4.64 56 Reviews
Highland, over 1 month
We had a terrific experience with Centauri. They were very responsive and communicative. They helped push the utility to stop dragging its feet when necessary, and they kept us informed each step of the way. Friendly, professional and flexible. And unlike some other installers, they did not make dodgy promises about whether the project would be operational in time for us to get the solar credits before they expired. They gave us a price for early 2026 (with no tax credits) that was better than the prices others gave us for 2025 (with tax credits).
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Highland, over 1 month
We had a terrific experience with Centauri. They were very responsive and communicative. They helped push the utility to stop dragging its feet when necessary, and they kept us informed each step of the way. Friendly, professional and flexible. And unlike some other installers, they did not make dodgy promises about whether the project would be operational in time for us to get the solar credits before they expired. They gave us a price for early 2026 (with no tax credits) that was better than the prices others gave us for 2025 (with tax credits).
4.43 92 Reviews
Mark E, over 1 month
Our system was installed in September 2024. We submitted a copy of our previous years electric usage. We we told that annually, we would generate enough power that we would end up with an annual credit. That was based on 3 adults living in our home for the prior 12 months. Shortly after install, we have achieved that goal 2 months out of the past 15 months. NEVER achieved close to an annual rebate/refund. When asked point blank about total snow coverage of panels during winter (Minnesota) we were told that the black panels would absorb the suns rays and quickly melt the snow. Experience shows that snow fall during extremely cold months, panels stay covered for many weeks. When questioned, we were also told that there were “unavoidable fees” from the utility company (Connexus) of $18+ monthly. We were not informed by the sales rep that to maximize our solar generation, we would need to clean the panel surfaces (at all) more than once annually (more like 2-4 times annually). I’m 73 years old and climbing on my roof is not something I can physically perform. 18 months after system install, I am now looking at adding more panels (not from Everlight) to cover monthly costs and some kind of heating elements to melt snow. When I sent my concerns via email to Malory at Everlight, she did not respond.
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Mark E, over 1 month
Our system was installed in September 2024. We submitted a copy of our previous years electric usage. We we told that annually, we would generate enough power that we would end up with an annual credit. That was based on 3 adults living in our home for the prior 12 months. Shortly after install, we have achieved that goal 2 months out of the past 15 months. NEVER achieved close to an annual rebate/refund. When asked point blank about total snow coverage of panels during winter (Minnesota) we were told that the black panels would absorb the suns rays and quickly melt the snow. Experience shows that snow fall during extremely cold months, panels stay covered for many weeks. When questioned, we were also told that there were “unavoidable fees” from the utility company (Connexus) of $18+ monthly. We were not informed by the sales rep that to maximize our solar generation, we would need to clean the panel surfaces (at all) more than once annually (more like 2-4 times annually). I’m 73 years old and climbing on my roof is not something I can physically perform. 18 months after system install, I am now looking at adding more panels (not from Everlight) to cover monthly costs and some kind of heating elements to melt snow. When I sent my concerns via email to Malory at Everlight, she did not respond.
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.
Read more
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!
4.17 4 Reviews
Monica Wong, over 1 month
We chose to go with Electro Solar b/c they work with quality panels, and are a small enough company that would give us more personalized service. That's exactly what we received too. Friends of ours worked with a large company and had problems b/c they were just a number to them. Stacey Green was great at communicating next steps and what to expect along the way. They were not trying to nickel and dime us, and worked with us to get only what we needed, not trying to oversell us. I would highly recommend going with Electro Solar. It was a completely smooth process.
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Average cost (5kW system)
$67,500,000 ($13500.00 per watt)
Monica Wong, over 1 month
We chose to go with Electro Solar b/c they work with quality panels, and are a small enough company that would give us more personalized service. That's exactly what we received too. Friends of ours worked with a large company and had problems b/c they were just a number to them. Stacey Green was great at communicating next steps and what to expect along the way. They were not trying to nickel and dime us, and worked with us to get only what we needed, not trying to oversell us. I would highly recommend going with Electro Solar. It was a completely smooth process.