Minnesota Solar Power Rebates

State Incentives

The Minnesota Solar-Electric Rebate Program is the main rebate vehicle in Minnesota, but at present it is out of funds. The initial budget of $700,000 for the financial year starting July 2008 has been expended and since the program was set to run only until the funds ran out, it is now closed. The rebate rate was decent, coming in at $2.25 per Watt of DC electricity generated.

The program covered systems from 0.5 kW to 10 kW and so the rebate amount was a maximum of $22,500. Given that the average installation is around the 3 kW mark, this fund only provided for about 700 homes throughout the state. Not quite a comprehensive plan. The solar hot water funding is included in this too, further reducing the range of the funding.

If you want to apply to the program in the hope of future funding, click here for application details.

Incentives By Utilities

At present two utilities offer further rebates, but both of these require you to have already been approved for the state based rebate. Since this fund is now exhausted, there is no point applying to these power providers.

The two are Great River Energy and Minnesota Power.

Installations performed by North American Board of Certified Electrical Practitioners (NABCEP-certified) installers are eligible for up to $4500, but you won't be able to apply this financial year.

Minnesota Solar Tax Exemptions And Credits

Minnesota residents are exempt from property tax increases due to the improvement in their property value from the construction of a solar or wind electricity generating system. Solar energy systems, including hot water systems, are also exempt from state sales tax.

Energy Efficiency Incentives

Heaps of power utilities offer incentives to residents to improve energy efficiency. These come in the form of rebates on purchases as well as grants for improvements to your home. Contact your local power provider to see what they can offer you to help reduce your energy use.

The state also has two energy efficiency loan options. The are offered by the Center For Energy And Environment and another by the Neighborhood Energy Connection. Both these loans have a fixed rate of 6.25%, which seems a little high given the current economic circumstances.

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