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No — Minnesota law specifically excludes the value your solar system adds from property tax assessment. Here’s the statute behind it, what’s actually covered, and the one exception worth knowing.
Solar panels raise what your home or business is worth — and in Minnesota, that added value is walled off from your property tax bill by state law. It’s one of the more useful, least talked-about solar incentives in the state, and it applies automatically to most residential and commercial systems.
Minnesota classifies solar energy generating systems as exempt personal property under Minn. Stat. § 272.02, Subd. 24. In practice, the market value your system adds to your property is excluded when the county assessor calculates your taxable value. Your home or building can appraise higher because of the array — solar reliably adds resale value — without your annual tax bill climbing to match.
The exemption covers the solar equipment itself: panels, racking, inverters, and the value they add. It doesn’t touch anything else on your bill — the land underneath and the rest of your property’s assessed value are taxed exactly as they were before you went solar. A battery installed alongside a typical residential array is generally treated as part of the same project; for anything more unusual, a quick check with your installer or county assessor is worth it.
Once the solar systems on one property add up to more than 1 megawatt, Minnesota reclassifies the land as class 3a and shifts the system off standard property tax and onto a separate solar production tax under Minn. Stat. § 272.0295 instead. That’s the framework most farms and commercial ground-mount projects fall under — including systems paired with USDA REAP grants for Minnesota farms and businesses.
Either way, the short version holds: solar is one of the few upgrades in Minnesota that pays you back in property value without also raising what you owe the county every year.
No. Minnesota Statute 272.02, Subdivision 24 exempts the value a solar energy system adds to your property from the property tax assessment, so your tax bill doesn’t rise because of the array.
No separate application is required for a typical residential or commercial system — assessors are directed to exclude the added value automatically. If it ever shows up on a valuation notice, flag it with your county assessor.
The exemption is written for solar energy generating systems. A battery paired with your array in a typical installation is bundled in — for an unusual setup, it’s worth confirming specifics with your installer or assessor.
Not quite. Once the solar systems on a property pass 1 megawatt combined, the land is reclassified as class 3a and the system moves onto Minnesota’s separate solar production tax instead of standard property tax on the equipment.
Talk to a local iSolar expert — free, no pressure. Call (651) 565-1140.