Minnesota Solar Tax Guide

Now is the time to go solar in Minnesota as the state offers incredible incentives and one of the nation’s most generous statewide net metering programs. Going green, lowering your utility payment, and increasing the value of your home are among the top benefits of getting solar on your home. The state of Minnesota has extra incentives in place to make the decision even easier!

Federal Residential Renewable Energy Tax Incentive

View information about the Federal Residential Renewable Energy Tax Incentive here.  You may download the form from the IRS here.

State Sales Tax Exemption

With sales tax in Minnesota at almost 7%, having the chance to be exempt from paying sales tax will offer many savings to homeowners in the state. The Minnesota state sales tax incentive allows you the opportunity to go solar without paying sales tax to the state.

Federal Tax Incentive

The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value.

Net Metering

Net energy metering is another solar incentive. Net metering allows you to store any excess energy that your panels produce in the electric grid. Net metering also allows you to pull from the electric grid at any time that your panels may be under-producing. Electricity usage fluctuates from month to month, and net metering protects you by storing your excess energy so you can use it at another time.

Xcel Energy Solar Rewards

Xcel Energy offers a performance-based incentive program for homeowners in its service area. Homeowners are able to be reimbursed $0.07 per kilowatt-hour (kWh) of the energy produced by their system each year for up to 10 years.

Minnesota Power SolarSense

Minnesota Power offers a rebate program to the homeowners in its service area. This is a lottery-based program and if you are selected, SolarSense can cover up to 60% of the installation costs.