Minnesota Solar Power in Minnesota
Not sure if solar is right for you? Incentives for solar power in Minnesota vary by utility provider. Read below or contact an All Energy Solar consultant to see what incentives are available for your solar system. Our team of dedicated professionals is waiting to assist you with every aspect of your solar energy project, from initial site visit and permitting to incentive paperwork and complete installation.
All Energy Solar is Minnesota Grown
All Energy Solar owners Michael and Brian Allen grew up right here in Minnesota, in the heart of Minneapolis, and they have been building the company for over a decade. Having national experience and an all-encompassing level of expertise in the solar industry, the brothers and their team work hard to offer their customers the very best full-service solar energy integration experience possible. And with industry leading certifications and full electrical and building licenses, you can be assured that All Energy Solar will make your dream a reality with ease.
Minnesota Solar Incentives
There’s no time like the present – read below to learn what incentives may be available to you as a Minnesota resident.
Made in MN Solar Rebate Program
Available for customers of Xcel Energy, Allete (Minnesota Power), Alliant Energy, and Otter Tail Power Company. Applications for the 2015 Made in MN Program are due by February 28, 2016!
The Minnesota legislature established a solar PV incentive program for consumers who install PV using solar modules certified as manufactured in Minnesota. The program is administered by the Department of Commerce with an annual budget of up to $15 million for ten years. The program is funded with 5% of each public electric utility’s total annual Conservation Improvement Program (CIP) budget. The Xcel Renewable Development Fund supplements this amount to bring the total incentives available to $15 million per year available to public electric utility customers.
Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years. Owners of an approved and installed PV system will receive payments annually by July 1st based on the kWh output of the system in the previous calendar year. There are three incentive levels depending on the ownership and system size. In addition, amounts vary by module. The three levels are For-Profit commercial, Non-Profit/Public, and Residential. Commercial systems may have a capacity of up to 40 kW and residential systems may have a capacity of up to 10 kW.
2016 Made in MN Solar Incentive Amounts
- Residential—for systems less than 10 kW
- Silicon Energy Voyageur Module = $.30/kWh
- tenKsolar Module XT-A = $.23/kWh
- Heliene Modules = $.23/kWh
- Itek Energy Module = $.27/kWh
- Commercial For Profit—for systems less than 40 kW
- Silicon Energy Voyageur Module = $.23/kWh
- tenKsolar Module XT-A = $.13/kWh
- Heliene Modules = $.13/kWh
- Itek Energy Module = $.18/kWh
- Tax Exempt/Nonprofit/Government—
for systems less than 40 kW
- Silicon Energy Voyageur Module = $.25/kWh
- tenKsolar Module XT-A = $.15/kWh
- Heliene Modules = $.15/kWh
- Itek Energy Module = $.20/kWh
Xcel Energy – Solar*Rewards Program
Available for customers of Xcel Energy. First come, first served!
This year’s program will allow MN solar producers in Xcel Energy territory to receive an annual rebate of $0.08/kWh of solar production for the next 10 years — in addition to net metering. This program offers incentives to customers for installing of PV panels and inverters listed on the California Energy Commissions (CEC) list. The PV system must be designed to produce less than 120 percent of the customer’s annual energy use, based on the past 12 months of energy use, and may have a capacity of 0.5 to 20 KW.
Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years.
Rochester, Owatonna, and Austin Public Utilities
Available for customers of Rochester, Owatonna, and Austin Public Utilities. The 2015 rebate pool is open for applications!
The Conserve & $ave Rebate program offers incentives to customers of Rochester, Owatonna, and Austin Public Utilities for installing a PV system that meets the MN Dept. of Energy’s rebates requirements in addition to the utility requirements. The PV system may have a capacity of 0.5 to 10 KW.
Incentives for solar PV are currently set at $0.50 per watt (based on the nameplate module rating) up to a maximum total rebate of $5,000.
Other local programs may be available. Don’t hesitate to contact us to learn whether or not an incentive is available for your utility!
Federal Solar Incentives
Federal Income Tax Credit
Available to any property owner in the United States. This credit is currently set to expire on December 31, 2016!
A taxpayer may claim a credit of 30% of expenditures for a system located in the United States that is owned by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed, and they include labor costs for on-site preparation, system installation, and wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then.
There is no maximum credit for systems place in service after 2008. Systems must be installed before December 31, 2016.
Additional Solar Incentives for Business Owners
Available to any business in the United States.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in PV through depreciation deductions. A solar PV system is classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A) to define eligible property.
USDA Rural Energy for America Program (REAP) Grants
Available for rural customers, as defined by the USDA.
The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to install solar PV systems. The maximum funding available is 25% of system cost, and each businesses total incentive will be determined based on a business level feasibility study.
Ready to talk about your solar energy system possibilities? Contact us to get a free solar quote.