Minnesota Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Minnesota costs $385,475. After the 30% federal tax credit: $269,833. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Minnesota State Incentives
Solar*Rewards (Xcel Energy)
Performance$0.05-$0.08/kWh for 10 years
Xcel Energy's Solar*Rewards program provides performance-based incentives for residential solar customers.
Made in Minnesota Solar Incentive
RebateAdditional incentive for MN-manufactured panels
Bonus incentive for using solar panels manufactured in Minnesota.
Net Metering
Net MeteringRetail rate for systems up to 40 kW
Net metering at full retail rate. Value of Solar tariff is an alternative option.
Tax Exemptions
property tax Exemption
Solar energy systems are exempt from property tax in Minnesota.
sales tax Exemption
Solar energy equipment is exempt from Minnesota state sales tax.
Utility Programs
Xcel Energy
- Solar*Rewards
- Net metering
- Community solar gardens
Minnesota Power
- Net metering
- Solar sense program
Highlights & Drawbacks
Highlights
- ✓Solar*Rewards provides ongoing incentive payments
- ✓Net metering at retail rate
- ✓Community solar garden options
- ✓Property and sales tax exemptions
Drawbacks
- !Lower sun hours
- !Cold winters reduce production
- !Short peak sun season
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.