solar incentives

An Update on Minnesota’s Solar Incentives

Wondering if any new solar incentives have become available to make it easier to afford your new solar energy system? Here’s a look at what is currently available to homeowners in Minnesota and what may be available in 2025 and beyond.

Federal Solar Tax Credit

What the Solar Tax Credit Covers

How much you receive for the federal solar tax credit is calculated based on five expenses related to your new solar energy system.

  1. The cost of the PV panels or cells.
  2. The costs of installation, including labor, fees, and inspection costs.
  3. Wiring, inverters, mounting equipment, and other balance-of-system materials.
  4. Energy storage devices with capacities of 3 kWh or more.
  5. Sales taxes on eligible expenses.

Sales Tax Exemption

The State of Minnesota has exempted solar energy systems from state sales tax, which will save you 6.875 percent of the total cost of your system. For the average homeowner, this could be a savings of $1,000 or more.

Minnesota Power SolarSense Lottery

Xcel Energy’s Solar*Rewards

Future Savings: Solar for All

The Environmental Protection Agency has awarded the State of Minnesota more than $62 million to fund grants for qualified homeowners who want to install solar energy systems. Solar For All grants will be available to low-income and disadvantaged homeowners. While these grants were not yet available as of October 2024, homeowners may be able to take advantage of this program in 2025.

Learn more about the future program at mn.gov. In the meantime, beware of scammers out there promising free solar for low-income households. From the Department of Commerce:

Solar for All program funding is not yet available. Minnesota residents should be aware of bad actors attempting to use this high-profile program to spread scam offers. Offers of “free solar” to low-income households because of this program—whether received via phone, email, text, advertisement or door-to-door marketing—are probably not legitimate.

It’s an Exciting Time for Solar Incentives!

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