Sunrise
Forest Trees

Solar

Are you intrigued about going solar for your home or business? Let's start with some solar basics and solar incentives specific to Minnesota.

Federal tax credits were extended in the Inflation Reduction Act, and that is just the start of the numerous new provisions implemented! Take a look at useful factsheets on the new IRA provisions to learn new incentives to take advantage of.

 

Minnesota’s solar incentives:

1. Sales tax exemption

 Minnesota residents do not have to pay sales tax on their solar purchases when they install solar panels. Minnesota state sales tax is close to 7 percent, therefore a sales tax exemption creates significant solar savings.

2. Net metering in Minnesota

Net metering is one of the best incentives around for Minnesotans. All residential-sized PV installations qualify to receive solar bill credits for sending their energy back to the grid. Check your utility company for their net metering program.

3. The federal solar tax credit

 With the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 30 percent in 2022. The ITC applies only to those who plan to buy their PV system outright, either with cash or a solar loan. 

If you're ready to go solar, you should invite at least 3 solar contractors to do a site assessment & present you with bids. Then you have 3 different designs and bids to look at. At that point, you choose your contractor. 

Solar 101 Webinar
with Solar United Neighbors & CCLEP

This informative webinar with Bobby Kind of SUN and Jessy Carlson of CCLEP will demystify the basics of solar, installations, financing, and more. 

Solar Energy Resources

New Provisions from the Inflation Reduction Act:

  • Rebates for households (single and multi-family residential):

    • Energy efficiency measures, especially for income-qualified households, including for heat pumps

      • Goes into effect 2023

  • Residential solar tax credit:

    • 30% of the installed cost

      • Effective immediately

  • Commercial solar tax credit:

    • 30% of installed cost: this includes battery storage

      •  Effective immediately

    • Potential to increase this tax credit depends on domestic content, low-income/tribal areas, etc. 

    • Tax-exempt entities (including local governments and nonprofits): direct pay option means that these entities can now access the benefits of the tax credit even though they don't pay taxes 

      • Goes into effect in 2023

  • Rural Energy for America Program (USDA REAP): Farms and rural small businesses loans & grants

    •  Funding is more than tripled, and grants can now cover up to 50% of project costs.

    • CERTs provides direct assistance on this program, including non-sales solar site assessments.

Solar Panel Installation

Did you know that solar can also heat your home?

Learn more about energy efficient solar thermal heating technology from an innovative Minnesota company!

MRES Virtual Solar Home Tour

Solar Panels