TruNorth Solar details a wide range of financial incentives available to Minnesota residential and commercial property owners, including performance-based rebates, tax exemptions, and specialized battery storage programs. These incentives are designed to lower the upfront costs and maximize the long-term return on investment for solar and energy storage systems across the state.
This incentive expired for homeowners on 12/31/2025. In 2025 and years previous, the ITC offered a 30% tax credit for residential solar installations. Be sure to check with your tax advisor or accountant on any tax related matters!
The Minnesota Solar Incentive Program (SIP) offers performance-based incentives to homeowners who install solar photovoltaic (PV) systems. These incentives are paid based on the amount of electricity your solar system produces, providing additional financial benefits over the first ten years of system operation.
Xcel Energy offers the Solar*Rewards program to its customers in Minnesota. This program provides financial incentives for installing solar PV systems, including a performance-based incentive paid annually for the first ten years based on the system’s energy production.
Although the Made in Minnesota Solar Incentive Program is no longer accepting new applications, it offered rebates to residents who installed solar panels manufactured in Minnesota. Homeowners who previously enrolled in the program continue to receive annual production-based payments.
Minnesota provides a property tax exemption for solar energy systems. This means that the added value of your home from installing a solar energy system is exempt from property tax assessments, potentially saving you money on your property taxes.
Purchasing a solar energy system in Minnesota is exempt from state sales tax. This exemption can significantly reduce the upfront cost of your solar installation, making it more affordable for homeowners to go solar.
Minnesota’s net metering policy allows homeowners to receive credits on their utility bill for the excess electricity their solar system produces and sends back to the grid. This policy ensures that you get full retail value for the surplus energy your system generates, further enhancing the financial benefits of solar energy.
The ITC offers commercial projects a 30%-40% tax credit for solar installations. If you signed a contract in 2025 or 2026 and have any questions around safe harboring, construction start, etc., please contact us. Be sure to check with your tax advisor or accountant on any tax related matters.
The MACRS allows businesses to recover investments in solar energy systems through accelerated depreciation deductions. This incentive allows businesses to depreciate the value of their solar energy equipment over a five-year period, providing significant tax saving.
The Minnesota Solar Incentive Program (SIP) provides performance-based incentives for commercial solar installations. Business owners receive payments based on the amount of electricity their solar PV system generates, spread over the first ten years of operation.
Xcel Energy’s Solar*Rewards for Business program offers financial incentives for commercial customers who install solar PV systems. This includes performance-based incentives paid annually over ten years based on the system’s energy production.
In Minnesota, commercial solar energy systems are exempt from property tax assessments. This means that the added value from the installation of a solar energy system will not increase the property taxes for businesses, providing a financial advantage.
Solar energy systems purchased in Minnesota are exempt from state sales tax, which reduces the overall cost of commercial solar installations. This exemption helps make solar investments more affordable for businesses and property owners.
Minnesota’s net metering policy allows commercial solar system owners to receive credits on their utility bills for excess electricity generated and fed back into the grid. This ensures that businesses get full retail value for the surplus energy their solar systems produce, optimizing financial returns.
The C-PACE program in Minnesota provides financing for energy efficiency and renewable energy projects, including solar installations, through a special assessment on the property. This financing structure allows business owners to fund solar projects with little or no upfront cost and repay the investment over time through property tax assessments.
Offers up to $1,000 back (as a Visa Reward Card) for purchasing and installing Powerwall 3 or Expansion units, valid for orders placed Nov 1, 2025, to March 31, 2026, and installed between Jan. 1, 2026 to Sept 30, 2026. This promotion celebrates reaching 1 million Powerwalls installed and aims to make home energy storage more accessible, and can be stacked with other incentives.
This incentive is designed for residential and small business customers in Minnesota who install new battery storage systems paired with solar energy. The program aims to reduce the upfront cost of energy storage to help stabilize the electric grid and increase energy resiliency.
Standard Incentive: $175 per kWh of storage capacity
Income Qualified: $370 per kWh of battery storage
Incentive is capped at $5000
Combined battery system size cannot be over 50 kWh
Incentives are currently available for battery storage systems outside of Xcel Energy service areas that are paired with solar energy systems.
Incentive: $250 per kWh of storage capacity
Incentive is capped at $7,000
Combined battery system size cannot be over 50 kWh
Q: What are the main tax-saving benefits of installing solar in Minnesota?
Q: What is net metering?
Q: Are there specific incentives available for adding battery storage to a solar system?
