All Energy Solar

Minnesota solar power incentives

For being the North Star State, Minnesota residents sure love our daytime star – the sun. Despite our snow-covered reputation, as of 2019, we’re ranked 12th in the nation for solar power installed. As Minnesota continues to develop solar friendly programs, we could rate even better. 

On top of great solar incentives, Minnesota solar panel installation costs have fallen 45 percent over the last 5 years. Between the varied Minnesota solar energy incentives and federal tax credit listed below, solar panel installation for your home or business could both affordable, and an extremely wise investment that will easily pay for itself. 

Minnesota residential solar power installation


30% Federal Solar Tax Credit

Thanks to the 2022 Inflation Reduction Act, the federal solar tax credit incentive has been increased and extended! Instead of falling to 22 percent in 2023, it was raised from 26 percent to 30 percent through 2032. That’s more than one-quarter of the cost of your solar power system covered before you even start looking at additional incentives.

Local Minnesota communities with solar incentives 


Some cities and towns throughout Minnesota offer solar rebates, exemptions from property taxes, and other solar programs. Minneapolis Green Cost Share, Saint Louis Park Solar Sundown, Chaska Municipal solar rebate and Rochester Public Utilities Solar Rebate are just a few examples of local-level Minnesota solar programs.  Could your community offer a solar power incentive?

solar for business

Minnesota business solar power incentives

PACE financing (Property Assessed Clean Energy) through MinnPACE is making energy efficiency upgrades and renewable energy investments more attainable to commercial building owners. Administered through the Saint Paul Port Authority, MinnPACE covers 100 percent of all project costs to start. Going forward, payments are repaid through a special property tax assessment with terms up to 20 years. As a result, projects become cash positive with financial savings outweighing financial burden.

Minnesota solar sales tax exemption

When installing solar panels in Minnesota, you don’t have to pay any sales tax on your solar purchase. With the sales tax exemption, you automatically save 7 percent or more instantly. Remember that these incentives stack together – using one solar incentive doesn’t stop you from using others.

Saint Paul Home backyard pergola with Solar panels - All Energy Solar

Minnesota net metering solar programs

All residential-sized Minnesota solar panel installations qualify to receive solar bill credits through net metering. Net metering is a process by which extra electricity produced by your solar power system is sent into the utility grid in exchange for credits on your energy bill. Later, at a time when your property consumes more power than your panels are generating, those credits can pay for the electricity you use when you have to tap into the grid.

Solar incentives with Minnesota utilities

Some Minnesota utility companies offer additional solar power rebates or incentives. For example, in addition to paying out a standard metering rate for which any of it’s solar powered customers can qualify, Xcel Energy’s Solar*Rewards pays you extra every time you generate more solar power than you use. Dakota Electric Association’s solar performance program offers a rebate of $0.50 per watt for installed capacity, not to exceed $4,000.  Rochester Public Utilities, Owatonna Public Utilities, and Austin Municipal are all cities who are part of a Conserve and Save rebate program. Minnesota Power’s SolarSense first-come-first-served program provides rebates to reduce the upfront costs of installing solar, helping make solar energy a more viable option for customers.

All Energy Solar is a full-service and licensed Minnesota solar panel installer that can help to ensure you take advantage of as many programs for which you may qualify. Contact us for a free quote that can show what solar power can do for you.ebook: Solar for BusinessWant to get more Minnesota solar power updates like this or learn about All Energy Solar solutions and services? Take a look at our Solar Power Case StudiesCustomer TestimonialsResidential Solar Project Gallery and Commercial Solar Project Gallery, then follow us on FacebookTwitter and Linkedin.



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