solar rebates and incentives

Minnesota’s rebates and incentives will help you save on solar

Minnesotans have a lot to brag about when it comes to the top-rated solar incentives and programs available in the Land of 10,000 Lakes. Take a look at our breakdown of all of the state-specific benefits of going solar in MN.

The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.

What are the best Minnesota solar tax credits and incentives?

There are a number of great reasons to go solar in Minnesota but sometimes it’s hard to find them compiled in an aggregate incentives list. Luckily, you came to the right place! Here’s our top 3 list for Minnesota’s solar incentives:

Sales tax exemption

When you install solar panels on your home in Minnesota, you don’t have to pay any sales tax on your solar purchase. Considering that state sales tax is nearly 7 percent, the sales tax exemption means major solar savings.

Net metering in Minnesota

With so many solar incentives floating around, it may be easy to forget about one of the best ones out there that will apply to any Minnesota homeowner: net metering. All residential-sized PV installations qualify to receive solar bill credits for sending their energy back to the grid. Xcel Energy offers the top utility net metering program in Minnesota.

The federal solar tax credit

Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).

Other Minnesota solar energy programs

When looking at the biggest reasons to go solar in MN, probably the best incentives of all can be found within the state’s awesome utility-specific solar programs:

Xcel Energy's Solar*Rewards Program

Powered by the Minnesota Renewable Development Fund, this performance-based incentive offers solar homeowners in Xcel Energy’s service area a yearly payment based on the energy production of their photovoltaic system. Xcel pays homeowners $0.07 per kilowatt-hour (kWh) of solar power production annually for up to 10 years. Unfortunately, the Solar*Rewards program budget has already been fully allocated for 2022, but Xcel has a waitlist you can join (Note: projects on the waitlist are not guaranteed to receive funding).


This lottery-based rebate will cover almost the entirety of your MN solar installation if you’re chosen as a lucky recipient. SolarSense pays up to 60 percent of the price of installation for any qualified solar homeowner under the utility of Minnesota Power. Check out the requirements for system size, system type and installer to see if you qualify for this amazing solar incentive.

Is something missing or out of date? Contact us at marketing@energysage.com to get this page updated.
Want to find the best deal on solar in all of Minnesota?
You wouldn’t buy a car without comparing a few options first. Shouldn’t solar be the same?

Compare multiple solar quotes on EnergySage

With EnergySage, you can compare your solar options when you receive quotes from the best local solar installers near you.

Minnesota Solar Marketplace

Get a quick estimate of your savings with solar

Find out how affordable solar is for your home with our Solar Calculator, or simply register your property today to get quotes.

Solar Calculator

Looking for the best MN solar companies?

Check out solar installers in nearby cities

See the cost of solar in MN cities and towns

$14,578 – $19,722

Check Prices