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Going Solar in Minnesota

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Incentives to Help You Go Solar in Minnesota

You might think Minnesota’s cold, snowy winters would make it an unlikely state for solar power success. In fact, as long as there’s sun, cold temperatures actually improve solar panel output. And snow is never an obstacle for high-quality solar panels.1 You can even use our LG Solar Concierge online tools to find out power generation and bill savings potential for any address in Minnesota.

The Solar Energy Industries Association ranked Minnesota 13th in the nation in solar energy for 2020 based on a variety of factors, including the number of homes that can be powered with the installed solar capacity (198,521), the percentage of electricity the state gets from solar (2.98%), and the number of solar jobs (4,335).2

Minnesotans interested in saving money long-term on their utility bills and doing something positive for the environment can take advantage of a variety of incentives that help residents who install solar earn rebates or other benefits.

State and Utility Incentives

Minnesota and the state’s utilities offer a number of solar incentives for residents, including:

  • Sales Tax Exemption: When you purchase and install a solar system in Minnesota, you don’t have to pay sales tax.3
  • Xcel Energy Program: Homeowners who own solar panels and who are located in Xcel Energy’s service area receive an annual payment based on the energy production of their solar system. Xcel pays $0.07 per kWh of solar production each year for up to 10 years. This incentive is powered by the Minnesota Renewable Development Fund.4
  • The SolarSense rebate program provides rebates to reduce the up-front costs of installing a solar system. To calculate the SolarSense rebate, a PV system’s estimated energy output is multiplied by $0.74/kWh. The rebates are available on a first-come, first-serve basis to Minnesota Power customers. Annual budgets for the program are approved through 2019.5

For a full list of the 162 energy-related regulatory, incentive, rebate, and loan programs in Minnesota, visit the Minnesota page at DSIRE, a service of the NC Clean Energy Technology Center.

Net Metering

Net metering enables some solar system owners to feed excess renewable energy from their systems into the local grid, reducing the demand for fossil fuels. In areas where net metering is available utilities will offer payments, usually in the form of energy credits, to utility customers who sell their excess energy to the grid.

All residential-sized solar installations in Minnesota qualify for Net Metering.6 

PACE Financing

PACE (Property Assessed Clean Energy) Financing is a program that will loan the cost of an eligible energy upgrade to a homeowner to be repaid over time through property tax bills.7 PACE of MN financing is available in all cities and counties of Minnesota through a Joint Powers Agreement with the St. Paul Port Authority. However, the eligible facilities are commercial office buildings, non-profit buildings, farms, and multi-tenant buildings.8

Federal Incentives

As a way to promote clean and renewable energy, the federal government has put in place two nationwide solar incentives. These incentives can be combined with any municipal or state incentives. However, some are time-sensitive, so homeowners should apply for them shortly after installation is complete. LG's Solar Concierge can help you connect with an expert to understand these incentives and how to apply.

  • The Federal Solar Tax Credit allows Americans in any state to deduct 26% of the cost of their residential solar installation from their federal taxes, dollar for dollar, through the end of 2020. The ITC then steps down to 22% for projects that begin construction in 2021. After 2021, the residential credit is scheduled to drop to zero, although a commercial and utility credit will remain.9 So lock in your ITC advantage by going solar now!
  • Customers of a public utility can save money at tax time because the money, credits or subsidies they earn are not taxable.10

Discover LG's Solar Concierge to Go Solar in Minnesota

Your geographical location, roof orientation, and electricity rates are major factors that influence the amount of savings solar energy can bring you. LG's Solar Concierge offers you a reliable online tool to find out personalized size and saving information. as well as access to our expert energy advisers so you get the right offers for your home. Choose a trusted global brand that offers high power output, high efficiency, long-term durability, and panels that produce power during late afternoons when the angle of light is lower (when utilities may charge more for electricity from the grid). Get peace of mind from knowing that we will be here for you now and for the 25 years guaranteed in our product, performance, and labor (up to $450) limited warranty.

When you go solar, ask for the brand you can trust: LG

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References

1. “Will Snow Hurt My Solar Panels?” LG USA. August 25, 2020. Web. 15, 2019. Web.
https://www.lg.com/us/solar/blog/will-snow-hurt-my-solar-panels.

2. “Minnesota Solar.” SEIA. April 15, 2019. Web.
https://www.seia.org/state-solar-policy/minnesota-solar.

3. "Solar Energy Sales Tax Exemption." DSIRE. September 11, 2020. Web: 
https://programs.dsireusa.org/system/program/detail/1218.

4. “Xcel Energy Solar rewards program.” Xcel Energy. August 25, 2020. Web. 2019. Web.
https://www.xcelenergy.com/programs_and_rebates/residential_programs_and_rebates/renewable_energy_options_residential/solar/available_solar_options/on_your_home_or_in_your_yard/solar_rewards_for_residences/.

5. “SolarSense.” Minnesota Power. April 15, 2019. Web.
https://www.mnpower.com/Environment/SolarSense/.

6. "Net Metering and Compensation". Minnesota Public Utilities Commission. August 25, 2020. Web. 
https://mn.gov/puc/energy/distributed-energy/net-metering/.

7. “Property Assessed Clean Energy Programs.” Office of Energy Efficiency & Renewable Energy. April 15, 2019. Web.
https://www.energy.gov/eere/slsc/property-assessed-clean-energy-programs.

8. “PACE in Minnesota.” Minnesota PACE. April 15, 2019. Web.
http://mnpace.com/pace-in-minnesota/.

9. “Solar Investment Tax Credit.” SEIA. April 11, 2019. Web.
https://www.seia.org/initiatives/solar-investment-tax-credit-itc.

10. Federal Government of the United States. "Title 26 - Internal Revenue Code". Federal Government of the United States. Federal Government of the United States. p.520. n.d.
https://www.gpo.gov/fdsys/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapB-partIII-sec136.pdf. 10 Dec. 2018.

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