The renewable energy sector continues to expand, despite policy uncertainty under the Trump administration.
Minnesota Solar Incentives: 2025 Overview
Minnesota offers strong incentives to make solar energy affordable. Homeowners can benefit from the 30% Residential Clean Energy Credit, and Minnesota’s net metering program allows residents to earn credits for excess energy, lowering future bills. The state also provides rebates through various programs, making solar even more accessible. Going solar in Minnesota is a smart…

Residential Clean Energy Credit
The Clean Electricity Investment Credit (previously called the Federal Investment Tax Credit) helps lower the cost of installing solar panels by 30%. This credit covers everything: the solar panels, equipment, labor, permits, and even sales tax.
For example, as of 2025 the average cost of a 10 kW solar system in the U.S. typically ranges between $21,000 and $29,500 before applying any federal tax incentives. After claiming the 30% Clean Electricity Investment Credit, the price drops to around $14,980 to $21,070, depending on the state and other factors like equipment quality and labor costs.
To claim this credit, you must buy your solar system with cash or a loan (leases don’t qualify). You also need to owe enough in taxes to claim the credit, but if you don’t, you can carry it over to future years until 2034.

Claiming the Clean Electricity Investment Credit is simple!
Step 1
Print IRS Form 3468
Step 2
Fill out the form using info from your installer
Step 3
Submit it when you file your taxes
What are the top solar incentives in Minnesota?
Besides the Clean Electricity Investment Credit (former ITC), homeowners can take advantage of several outstanding incentives that significantly enhance the return on investment for solar panels. Here are some of the most effective ways to lower your solar installation costs.
Incentive
Savings
Summary
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems of at least 0.5 kW DC and less than 20 kW DC. The program offers an incentive based on the kWh production from the PV system, as recorded by the production meter. This incentive is paid annually at $0.08/kWh produced over 10 years. The customer must agree to assign the Renewable Energy Credits (RECs) produced by the system to Xcel Energy for the term of the 10-year contract.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems of at least 0.5 kW DC and less than 20 kW DC. The program offers an incentive based on the kWh production from the PV system, as recorded by the production meter. This incentive is paid annually at $0.08/kWh produced over 10 years. The customer must agree to assign the Renewable Energy Credits (RECs) produced by the system to Xcel Energy for the term of the 10-year contract.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.08 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle. The program capacity available for 2018 has increased largely from 4.6 MW to 13.7 MW. Application owners will have 30 calendar days to upload engineering documents and payment after a project has received program funding.
Residential Renewable Energy Tax Credit
A taxpayer may claim a credit of 30% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.
Residential Renewable Energy Tax Credit
A taxpayer may claim a credit of 26% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.
Residential Renewable Energy Tax Credit
A taxpayer may claim a credit of 22% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.07 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.07 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.04 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle.
Residential Renewable Energy Tax Credit
A taxpayer may claim a credit of 30% for the installation which was between 2022-2032 (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit), with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the placed in service date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.04 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle.
Residential Solar Rewards – Income Qualified Systems
Solar*Rewards has specific incentives set aside for income-qualified customers with limited financial resources. You can invest in solar on your single-family home, townhome, apartment building or business, or by building a solar garden for income-qualified customers.
Residential Solar Rewards – PBI
Xcel Energy’s Solar Rewards Program provides an incentive for residential customers that install grid-connected photovoltaic systems that produces between 0.5 and 20.00kW. Systems of 20.01 kW do not qualify. The current performance based incentive (PBI) offered to customers to help offset the cost of installing PV is $0.04 per kWh produced by the PV system. The incentive is paid annually for 10 years, with payment being made by check in January and February of each year depending on your billing cycle.
Residential Solar Rewards – Income Qualified Systems
Solar*Rewards has specific incentives set aside for income-qualified customers with limited financial resources. You can invest in solar on your single-family home, townhome, apartment building or business, or by building a solar garden for income-qualified customers.
Solar Sense Rebate Program – South Facing
People’s Energy Cooperative offers a rebate for solar system south facing $0.25 per watt with a maximum of $2,000 per location, azimuth angle 135 to 224 degrees. Limit of one solar array allowed at each service location. Rebates are in place through December 31, 2020. Funds are limited. Documentation must be submitted no later than three months after commissioned date. Rebate offer in current calendar year will be utilized, if still available.
Solar Sense Rebate Program – West Facing
People’s Energy Cooperative offers a rebate for solar system west facing $0.50 per watt with a maximum of $4,000 per location, azimuth angle 225 to 270 degrees. Limit of one solar array allowed at each service location. Rebates are in place through December 31, 2020. Funds are limited. Documentation must be submitted no later than three months after commissioned date. Rebate offer in current calendar year will be utilized, if still available.
Solar Sense Rebate Program – South Facing
People’s Energy Cooperative offers a rebate for solar system south facing $0.25 per watt with a maximum of $2,000 per location, azimuth angle 135 to 224 degrees. Limit of one solar array allowed at each service location. Rebates are in place through December 31, 2020. Funds are limited. Documentation must be submitted no later than three months after commissioned date. Rebate offer in current calendar year will be utilized, if still available.
Solar Sense Rebate Program – West Facing
People’s Energy Cooperative offers a rebate for solar system west facing $0.50 per watt with a maximum of $4,000 per location, azimuth angle 225 to 270 degrees. Limit of one solar array allowed at each service location. Rebates are in place through December 31, 2020. Funds are limited. Documentation must be submitted no later than three months after commissioned date. Rebate offer in current calendar year will be utilized, if still available.
Residential Solar Rebate – PBI
Dakota Electric Associationâ??s solar performance program offers a rebate of $0.50 per watt for installed capacity, not to exceed $4,000. Payment of the rebate is based on the kilowatt-hour (kWh) production from your photovoltaic (PV) system, as recorded by Dakota Electricâ??s production meter. The rebate is credited on your bill monthly at $0.08 per kWh produced up to the rebate amount or 10 years, whichever occurs first.
Residential Solar Rebate
Dakota Electric Association offers a one-time payment of $500 per premise upon the installation and commission of your solar photovoltaic (PV) array.Rebate is available for the installation of a solar array installed on or after Jan. 1, 2023.
Residential Solar
SPU will be offering a $1,000 solar rebate for installed and approved solar systems in 2021. Solar rebate funding is limited and is available on a first come, first served basis. Rebate applications will not be accepted in advance of a signed interconnection agreement and paid application fee. In an effort to reward more customers installing solar systems within our service territory, SPU has allocated funds to rebate sixty (60) solar installations in 2021.
Residential Solar
SPU offers a solar rebate up to $500 for installed and witness test approved net metering solar systems.Solar rebate funding is limited and is available on a first come, first served basis. Only qualified solar systems will receive a solar rebate.
Residential Photovoltaic (PV) Rebate Program
The New Ulm Public Utilities solar electric rebate provides financial incentive for the installation of new grid connected solar electric systems. A rebate of $1 per nameplate watt (Standard maximum $2,000 Residential). Systems must be new and sized between 0.5 kilowatts (kW) and 40 kW.
Residential Photovoltaic (PV) Rebate Program
The New Ulm Public Utilities solar electric rebate provides financial incentive for the installation of new grid connected solar electric systems. A rebate of $0.50 per nameplate watt (Standard maximum $2,000 Residential). Systems must be new and sized between 0.5 kilowatts (kW) and 40 kW.
Residential Photovoltaic (PV) Rebate Program
The New Ulm Public Utilities solar electric rebate provides financial incentive for the installation of new grid connected solar electric systems. A rebate of $1 per nameplate watt (Standard maximum $2,000 Residential). Systems must be new and sized between 0.5 kilowatts (kW) and 40 kW.
Solar Panel Residential Rebate
The City of Chaska Electric Utility is excited to offer renewable energy choices for residential customers. Today, 17% of your home’s electricity comes from renewable energy, as required by the State of Minnesota. You now have a choice of increasing your renewable energy mix to 50, 75 or 100 percent from renewable sources for only a few extra dollars per month. By participating in the Chaska Rebate Program, you can save energy and earn a rebate when you install solar panels.Due to program changes, the Solar Panel Rebate will not be offered beyond 2023. All interconnections signed in 2023 will remain eligible.
Residential Photovoltaic (PV) Rebate Program
There is a new and exciting renewable energy program in Moorhead called “Capture The Energy.” Capture The Energy was developed by Moorhead Public Service (MPS) to promote renewable energy in Moorhead. It offers rebates for qualifying electricity producing solar systems for up to $1,500 per kilowatt (kW). Systems must meet MPS interconnection standards.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.25 per watt (based on the System DC Rating) (up to a maximum lifetime total rebate per location of $2,500). At least 0.5 kW DC or larger. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $500 will be available to customers. New photovoltaic system that is 2.0 kW DC or larger. All of the system components must be new.Customer must sign a utility net-metering/interconnection agreement with Austin, Owatonna, or Rochester Public Utilities. In exchange for the rebate, the utility will own any and all Renewable Energy Credits (RECs) associated with the PV system.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.25 per watt (based on the System DC Rating) (up to a maximum lifetime total rebate per location of $2,500). At least 0.5 kW DC or larger. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $500 will be available to customers. New photovoltaic system that is between 2.0 kW DC or larger. All of the system components must be new. Due to limited funding, this rebate offer first-come, first-served basis.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.50 per watt (up to a maximum total rebate of $5,000). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $0.25 per watt (up to a maximum total rebate of $2,500). At least 0.5 kW and up to 10 kW. All of the system components must be new.
Residential Photovoltaic (PV) Rebate Program
The CONSERVE & SAVE solar electric rebate for households provides financial support for the installation of new grid connected solar electric systems. A rebate of $500 will be available to customers. New photovoltaic system that is between 2.0 kW DC or larger. All of the system components must be new. Due to limited funding, this rebate offer first-come, first-served basis.
Disclaimer: The information provided here regarding solar incentives, tax credits, and rebates is for general informational purposes only and may vary based on your specific circumstances. For exact details, eligibility requirements, and current rates, we recommend consulting a certified solar installer or a tax professional. Incentives can differ by location, utility provider, and individual project, so it’s important to get personalized advice for your solar installation. Always verify the most up-to-date information from your local solar installer to understand how these incentives apply to your project.
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