Minnesota is a great location for solar systems, with 196 sunny days on average per year, providing a reasonable amount of sunlight for solar energy initiatives. While it may not have as many sunny days as some other states, Minnesota’s weather conditions still offer opportunities for viable solar power projects. The state actively supports renewable energy through various incentives. Here are some of the solar incentives available to homeowners and businesses in Minnesota:
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Federal Solar Investment Tax Credit (ITC):
Homeowners that qualify for the Solar ITC can take advantage of a tax credit for 26% of the total purchase price of their solar system. This credit applies to all solar projects that begin construction in 2023 and will last through 2033, at which point it will drop to 22%.
Xcel Energy Solar Rewards Program:
This program pays system owners for their systems’ energy production.
State Sales Tax Exemption:
The average cost of a solar panel system in Minnesota ranges from $14,578 to $19,722, according to EnergySage. The state sales tax exemption can help reduce the cost of the system.
Net-Metering:
Solar energy systems in Minnesota are eligible to participate in net metering, which allows you to send your extra electricity back into the grid and get credits on your electric bill. When your panels aren’t producing all the electricity you need, you can use your credits instead of having to pay for electricity from your utility.
Further information and programs can be found at the Programs.Dsireusa.org
