Minnesota Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 90.7 kW system using the historical observed average cost in Minnesota is $385,475. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $17,595.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Minnesota State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.