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Discover the Power of Solar Energy in Minnesota!

Welcome to Minnesota, a state celebrated for its thousands of lakes, rich natural landscapes, and a rapidly growing dedication to renewable energy. Despite its cold winters, Minnesota enjoys plentiful sunlight during the spring, summer, and fall, providing a substantial foundation for solar power generation. This untapped potential offers a compelling opportunity for homeowners and businesses alike to invest in clean, renewable energy, supporting the state?s environmental goals and its journey towards a sustainable future. Bolstered by enticing incentives aimed at reducing the initial costs of solar installations and a community ethos that deeply values the preservation of its natural beauty, Minnesota is poised for a significant shift towards solar energy. Learn how leveraging Minnesota?s solar resources can brighten your home, reduce your energy bills, and promote a healthier environment in the North Star State. Join us in embracing the sun?s endless power and moving towards a brighter, more sustainable future in Minnesota.

Solar State Incentives

Minnesota State Solar Incentives

Solar Grant Program: Public Buildings
H.F. 2310, enacted in May 2023, launched the Solar Grant Program: Public Buildings in Minnesota, allowing local government units to apply for grants covering 100% of solar energy system costs.
Solar for Schools Program
H.F. 2310, enacted in May 2023, established the Solar for Schools grant program in Minnesota, providing 100% funding for solar energy systems in schools.
Community Solar Gardens
Minnesota's HF 729 law, enacted in 2013, established the framework for Community Solar Gardens, with each facility limited to 1 MW capacity.
City of Minneapolis - Solar Access and Easement Laws
This policy outlines guidelines for solar energy systems, including location, compatibility, safety, and use, to increase renewable energy generation.
Minnesota PACE Program (MinnPACE)
MinnPACE provides 100% financing for energy-efficiency upgrades and renewable energy investments in Minnesota. Commercial properties, farm operations, nonprofits, and multifamily housing properties can participate.
Rural Minnesota Energy Board PACE Program
The Rural Minnesota Energy Board offers PACE financing for energy efficient retrofits of commercial or industrial buildings, with some restrictions in place.
Value of Solar Tariff
Minnesota allows utilities to use an approved solar value methodology for a Value of Solar Tariff but no utility has yet adopted it. The tariff credits customers for solar electricity produced.
Xcel Energy - Solar*Rewards Program
Xcel Energy's Solar*Rewards program provides solar production incentives for systems 20 kW-DC or less, with certain eligibility restrictions and requirements.
Fix-Up Loan
MHFA's Fix-up Loan offers low-interest financing for home improvements, with higher amounts for disability accessibility. Homeowners contract with approved lenders directly.
Owatanna Public Utilities - Solar Rebate Program
Owatanna Public Utilities offers rebates for customers installing solar systems, with eligibility conditions including energy audits and interconnection contracts.
Austin Utilities - Solar Rebate Program
Austin Utilities offers $500 rebates for PV and $15/sq ft for solar water heating, requiring net metering, energy audit, and application.
Rochester Public Utilities - Solar Rebate Program
Rochester Public Utilities offers $500 rebates for PV systems that meet requirements, with net metering, energy audit, and application.
Farm Opportunities Loan Program
The Farm Opportunity Loan Program offers low-interest loans up to $100,000 for farmers to purchase equipment and adopt best practices.
Community-Based Energy Development (C-BED) Tariff
Minnesota's C-BED tariff requires utilities to offer 20-year PPAs for community-owned renewable energy projects, with specific ownership criteria.
Renewable Energy Standard
Minnesota's RPS requires utilities to generate 55% of electricity from renewables by 2035, with a 1.5% solar carve-out and stricter requirements for Xcel Energy.
Dakota Electric Association - Residential Energy Efficiency Rebate Program
Dakota Electric offers rebates for energy-efficient home equipment, issued as credits or based on the product's efficiency.
Owatonna Public Utilities - Residential Conserve and Save Rebate Program
Owatonna's program offers rebates for energy-efficient equipment, increasing with recycling of old units.
Marshall Municipal Utilities - Residential Energy Efficiency Rebate Program
MMU offers rebates for various energy-efficient home equipment, including appliances and EV chargers.
Austin Utilities (Gas and Electric) - Residential Conserve and Save Rebate Program
Austin Utilities provides rebates for energy-efficient and solar equipment, plus recycling incentives.
Solar Energy Sales Tax Exemption
Minnesota exempts solar-energy systems from sales tax, covering a broad range of components and applications.
Minnesota Power - SolarSense Solar Rebate Program
Minnesota Power offers a $0.29/kWh rebate for solar PV systems up to 20kW, with preapproval and specific conditions.
Interconnection Standards
MPUC's updated interconnection standards use a three-tier approach for systems up to 10 MW, simplifying the process.
Renewable Development Fund (RDF)
Xcel's RDF, fueled by contributions linked to nuclear storage, supports a wide array of renewable energy initiatives.
Solar Equipment Certification Requirement
Minnesota mandates SRCC certification for solar heating systems on buildings, excluding electric power systems.
Comprehensive Energy Savings Plan for State Facilities
Minnesota's energy policies for state buildings focus on efficiency, renewable installations, and sustainable construction.
Minnesota Solar/Wind Easement Law & Local Law Options
Minnesota law enables solar and wind easements, requiring written agreements and allowing local zoning for sunlight access.
Net Metering
Minnesota's net metering law covers all utilities, with no cap, encouraging small-scale renewable energy systems.
Value-Added Stock Loan Participation Program
Minnesota's program aids farmers in financing value-added agri-product stock purchases, with up to 45% loan participation.
Wind and Solar-Electric (PV) Systems Exemption
MN exempts wind/solar systems from property tax, implementing a production tax instead, with specific rates and distributions.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.