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Minnesota Solar Power Rebates, Tax Credits, and Incentives

The state of Minnesota leads the mid-west's efforts to increase clean energy by providing several incentive programs for installing wind and solar power systems. In 2005, the legislature passed a law which requires all utility providers to generate at least 25% of their energy from wind, solar, geothermal, and other renewable energy sources by the year 2025. Xcel Energy, the state's largest utility, must produce at least 30% of its power from renewable energy sources by 2025, 25% of which must be wind power.

There are several programs in Minnesota, which when combined, can mean big savings:

  • Solar Choice Program: Austin Public Utilities, Owatonna Public Utilities, and Rochester Public Utilities each offer variations on this program. In short, the utility sells your excess solar to customers who are interested in using solar energy instead of traditional. You receive a check for the amount sold at the end of the fiscal year.

  • PV Rebate Program: The big guys, Xcel, offer a rebate of $2/watt of solar paneling you install. The average single family system is 2-4kW in size, so that would be $4,000-$8,000 in rebate. The program maxes out at $20,000 (for a whopping 20kW system – if your roof can handle a system this big, I am impressed). A good solar installer will help you with all the icky paperwork.

  • Tax Exemptions: Your solar equipment and installation is exempt for state sales tax and your property taxes are also exempt. Yippee!

  • Federal Tax Credit: On top of all of that, you can claim 30% of the total cost of your installation on your federal taxes.

See Also: What is Photovoltaic Solar Power? ; How to Choose a Solar Installer? ; Is Solar Right for Me? ; What is a Certified NABCEP Solar Installer? ; Solar FAQ

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