Minnesota Solar Energy Incentives

Minnesota boasts one of the countries strongest Renewable Portfolio Standards (RPS), with an impressive 25% requirement for utilities to source their power from a renewable energy source by the year 2025. In addition, to assist in job creation, the state passed the Solar Energy Jobs Act which mandates that solar provide 1.5% of energy sales by 2020, and encourages 10% by 2030. The largest utility, Xcel Energy, expects to not only reach but exceed those goals. This means that there is plenty of growth in the solar sector, with high demand for installers, engineers, and electricians with a background and knowledge on solar energy.

Xcel Energy also offers the unique Solar Rewards Program for photovoltaics which offers $0.01-$0.05 per kilowatt hour credit that can either be rolled over and held in a solar bank or, homeowners can choose to have the saves paid out to them on a yearly basis. The program also offers a rebate for Photovolatics up to $90,000, which is paid at $2.25 per install watts of DC Solar power; this power cannot exceed 40kw. Homeowners must enter into a 20-year contract with Xcel for all REC’s generated by the system during the contracts life. In addition, Xcel offers the Minnesota Made program, in which Xcel offers an additional $2.75 per watt DC offering a total of $5.00 per watt DC payout every five years. The company will also purchase any excess generation of the system through its net metering program. In order to qualify, applicants must be an Xcel customer, live in Minnesota and have an Xcel meter. Existing structures also can apply for these programs as long as they have had an energy audit within the last three years.

In addition, all Minnesota utilities must offer a solar production incentive for systems of 20kw DC power or less. With the average size of home systems being between 5 to 15kw, most residential applications will be eligible for incentives regardless of their utility provider. Another impressive program for Minnesota residents is the Value of Solar Tariff, which is available for solar and other renewable applications. This tariff credits at a retail rate toward future months and is an alternative to net metering for utility companies that have not yet been established. To find out what solar incentives are offered, Minnesota residents are encouraged to go to their utility provides websites to find out further details and regulations.

Financial Incentives

Regulatory Policies