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Xcel offers real incentives for Minnesota solar — Solar*Rewards for homes, net metering, and a demand credit for larger commercial systems. Here’s how each one helps.
Xcel Energy has a few different ways it helps Minnesota solar customers save. The programs have changed over the years, so here’s the honest, current rundown of what’s available.
Solar*Rewards is still here for homeowners. It’s a performance-based incentive that pays you a per-kWh credit for the solar energy your system produces — on top of the savings from net metering. Capacity is limited and the program enrolls in rounds, so it pays to apply early; we handle the Solar*Rewards application and interconnection paperwork as part of your install. (See Xcel’s program page: Xcel Solar*Rewards.)
When your panels make more power than you’re using, the surplus flows to the grid and Xcel credits you at the retail rate. You draw those credits back at night and in winter — so summer sun effectively pays your January bill. For most Minnesota homes, net metering plus Solar*Rewards is where the savings come from.
For demand-metered commercial and industrial customers with solar over 40 kW (AC), Xcel’s old commercial Solar*Rewards production incentive has been replaced by the Photovoltaic Demand Credit Rider. It pays a credit (around 7¢ per kWh) on the solar you generate during the 1:00–7:00 p.m. peak period, up to the size of your demand charge. We model the exact value as part of a commercial proposal.
Two state breaks quietly add up: solar equipment is exempt from Minnesota sales tax, and the added home value from solar is excluded from your property taxes — so going solar won’t raise your property-tax bill.
Through Xcel’s Solar*Rewards Income-Qualified program, eligible Minnesota families can go solar at little to no cost. iSolar has helped income-qualified households since 2020 — if money has been the barrier, ask us whether you qualify.
Businesses and farms can also stack the 30% federal Investment Tax Credit (time-limited — begin construction by July 4, 2026) with accelerated MACRS depreciation, which is what shortens commercial payback to just a few years. (The federal residential tax credit ended December 31, 2025, so it’s not part of home solar math anymore.)
Bottom line: Minnesota solar still adds up — especially when it’s sized and engineered right. Get a free assessment and we’ll show you exactly which of these apply to your home, farm or business.
Talk to a local iSolar expert — free, no pressure. Call (651) 565-1140.