Minnesota solar incentives, made simple.
We track every credit, grant and rebate — and handle the paperwork so you capture the most.
What's available in 2026
For commercial & agricultural
- 30% federal Investment Tax Credit on the full system cost — time-limited: begin construction by July 4, 2026, or place in service by Dec 31, 2027
- Accelerated (MACRS) depreciation, plus bonus depreciation
- USDA REAP — the grant program is paused and under federal review in 2026; loan guarantees remain. We track the status and tell you where it stands for your project
- Xcel Solar*Rewards production payments + the MN sales-tax exemption
For homeowners
The federal residential solar tax credit ended December 31, 2025 — there's no federal credit for new homeowner-owned systems in 2026. We'll tell you exactly what still applies to your home (financing and any utility programs), and we never bake a credit into a quote that doesn't apply.
Every Minnesota solar incentive, in plain English.
Some apply to homes, some to businesses and farms — we'll tell you which are yours. Find your exact incentives with our free Incentive Finder →
30% federal ITC (commercial & ag)
Businesses and farms can claim 30% of the system cost as a federal tax credit. It's closing under the 2025 tax law — start construction by Dec 31, 2026 and be operational by Dec 31, 2027 to qualify. We help you lock it in.
Low-income community bonus (commercial & ag)
Commercial and farm systems under 5 MW in a designated low-income or Environmental Justice community can add 10% (up to 20%) on top of the 30% ITC. Competitive federal allocation with a yearly window — we check your site and file early.
MACRS + 100% bonus depreciation (business)
5-year accelerated depreciation plus 100% bonus depreciation, on top of the ITC, for commercial and farm systems — a major first-year tax deduction.
USDA REAP grant (agricultural)
Farms and rural small businesses may qualify for a USDA Rural Energy for America Program grant covering part of a solar project. Funding runs in cycles — we'll tell you if it's open when you're ready.
Xcel Solar*Rewards (homeowners)
Xcel's residential production incentive pays for every kWh your panels make in the early years. Budget is limited each year — enroll early.
Income-qualified Solar*Rewards
Xcel's income-qualified track offers a higher Solar*Rewards rate plus upfront help for eligible households. We handle the paperwork.
Xcel PV Demand Credit Rider (commercial)
Commercial Solar*Rewards has been replaced by Xcel's PV Demand Credit Rider — a monthly credit for larger systems (roughly 40 kW and up). We size and file it for you.
Battery storage incentive
Minnesota's storage incentive pays per kWh when you pair a battery with solar (about $175/kWh in Xcel territory, more elsewhere). Ask us about current availability.
Community solar garden
Not the right roof for panels? Subscribe to a Minnesota community solar garden and earn monthly bill credits — income-qualified subscribers get extra perks.
MN sales-tax exemption
Solar equipment is exempt from Minnesota sales tax — an automatic saving of nearly 7% on your system, with no application needed.
MN property-tax exemption
Solar raises your property value, but Minnesota exempts that added value from your property taxes. The savings are yours; the tax bill doesn't move.
City & local solar programs
Some metro cities add their own solar and energy rebates — like St. Louis Park's Climate Champions Solar Bonus. Run our Incentive Finder to see what your city offers.
Home Energy Rebates (coming soon)
Minnesota's federally-funded Home Energy Rebates (heat pumps, panels, insulation, wiring) are launching but not open yet. We'll flag it the moment it opens.
PACE financing (commercial & ag)
Commercial PACE lets businesses and farms finance solar through a long-term assessment with no money down. A financing option, not a rebate — we can walk you through it.
Minnesota EV charger, efficiency & electrification incentives (2026)
If you're adding solar, this is also the right time to evaluate EV charger rebates — the panel work, electrical permit, and inspection are largely the same project, and the combined incentives can offset most of the charger and wiring cost.
Major utility EV charger rebates
- Xcel Energy — EV Charger & Wiring Rebate: Offsets cost of adding a Level 2 circuit and eligible charger equipment (income-qualified customers may qualify for more). Xcel — EV Charger & Wiring Rebate.
- Connexus Energy — EV Charger Installation Rebate: Up to $500 for qualifying members, often tied to an EV rate or program enrollment.
- Wright-Hennepin Cooperative — EV Charger Rebate: $500 bill credit for hardwired 240V Level 2 stations meeting program requirements.
- Minnesota Valley Electric Cooperative (MVEC): EV charger rebate tied to its EV charging program requirements.
- Rochester Public Utilities (RPU): EV-related incentives through Conserve & Save (offerings change by program year).
Cooperative & municipal utility EV charger rebates (expanded)
Minnesota has a large number of municipal utilities and electric cooperatives offering EV charger rebates — many require a WiFi-connected (“smart”) charger and/or enrollment in an off-peak/load-control program. Always confirm current terms on the utility's official page before purchase.
- Agralite Electric Coop — up to $500 (often tied to load management)
- ALP Utilities — $500 smart Level 2 / up to $150 non-connected (Bright Energy Solutions)
- Arrowhead Electric Coop — $500
- BENCO Electric Coop — up to $500 (often up to 50% of project cost)
- Blue Earth Light & Water — up to $500
- City of Anoka — rebate tied to TOU enrollment
- City of Buffalo — $500 bill credit (Level 2)
- City of Chaska — $250 (Level 2); business DC fast-charging rebate available
- City of Elk River — up to $700 (Level 2)
- City of Hawley — $50/kW (cap applies)
- Marshall, Detroit Lakes, Worthington, Sauk Centre, St. James, Staples, Wadena, Luverne, Jackson, Benson, Breckenridge, Barnesville — $500 smart Level 2 / $150 other (typical)
- Connexus Energy — up to $500 + commercial workplace charging
- Cooperative Light & Power — $500 (often tied to TOU enrollment)
- Crow Wing Cooperative — $350
- Dakota Electric Association — $500
- East Central Energy — $500
- Federated Rural Electric Association — $500
- Freeborn Mower Cooperative Services — up to $400
- Goodhue County Cooperative Electric — $500 (often tied to TOU)
- Heartland Power Cooperative — up to $800 (metered Level 2) / $400 (standard Level 2)
- Hutchinson Utilities Commission — $500 smart Level 2 / $150 other
- Itasca-Mantrap Cooperative — $500
- Kandiyohi Power Cooperative — $200
- Lake Park Public Utilities — $500 smart Level 2 / $150 other
- Lake Region Electric Cooperative — $500
- McLeod Cooperative Power — $500
- Meeker Cooperative Light & Power — $500
- Melrose Public Utilities — $500 smart Level 2 / $150 other
- MiEnergy Cooperative — up to $800
- Mille Lacs Energy Cooperative — $500 (verify current availability)
- Minnesota Valley Electric Cooperative — $150
- Minnkota Power Cooperative — $50/kW (cap applies)
- Moorhead Public Service — $500 smart Level 2 / $150 other (Bright Energy Solutions)
- Nobles Cooperative Electric — $500
- North Star Electric Cooperative — $50/kW (cap applies)
- People's Cooperative Services — up to $800
- Red Lake Electric Cooperative — $50/kW
- Red River Valley Coop Power — $50/kW (higher cap may apply)
- Rochester Public Utilities — $200
- Roseau Electric Cooperative — $100/kW (cap applies)
- Runestone Electric Association — $500 controlled / $250 non-controlled (typ.)
- Stearns Cooperative Electric — $500
- Steele-Waseca Cooperative Electric — $500
- Todd-Wadena Electric Cooperative — $500
- Wild Rice Electric Cooperative — $50/kW (cap applies)
- Wright-Hennepin Cooperative Electric — $500 bill credit
EV off-peak / time-of-use programs
Many MN utilities offer time-of-use or load-control programs for EV charging that can dramatically reduce electricity cost. Terms vary — some require a separate meter or a controllable charger.
- Connexus Energy — time-of-day program + optional EV subscription
- Wright-Hennepin — TOU plan + optional EV subscription
- Cooperative Light & Power — TOU (often requires separate meter)
- Todd-Wadena — EV rate with defined off-peak windows
- Willmar Municipal Utilities — monthly credit for controllable EV charging
- City of Anoka, Chaska, Elk River, Owatonna — municipal TOU schedules
- BENCO — on-peak / mid-peak / off-peak pricing structure
- Beltrami, Blue Earth Light & Water, Arrowhead — load-management / off-peak windows
EV purchase incentives (separate from chargers)
- MN State EV Rebate Program: Minnesota previously offered a state EV purchase rebate; funding status varies year to year. Confirm current status with the MN Department of Commerce. mn.gov/commerce — EV rebate.
- Utility EV purchase rebates (select MN utilities): Some utilities offer rebates toward purchase of a new EV or PHEV (separate from charger rebates). Confirm availability and requirements directly with the utility.
Electrical service / panel-upgrade and home-electrification rebates
- Xcel Energy — Electrical Panel Upgrade Rebate (up to $1,500): For Xcel customers upgrading the panel/service to support electrification loads (heat pumps, EV, induction range, etc.). Documentation required. Xcel — Electrification rebates.
- Federal Home Electrification & Appliance Rebates (HEAR): Helps eligible households reduce the cost of electrification upgrades. MN rollout timing controlled by the state. MN Commerce — HEAR.
- Federal Home Efficiency Rebates (HOMES): Whole-home energy-saving improvements; rebate amounts depend on energy savings + income. MN Commerce — HOMES.
- Save Energy Minnesota status: MN Commerce maintains the official rollout-status page for federal HEAR/HOMES.
Generator incentives
- Connexus Energy — Peak-Shaving Generation Credit Rider: Bill credit for qualifying standby generation sites that participate in peak-shaving (best fit for larger sites with standby capacity).
Energy-efficiency rebates (HVAC / windows / insulation / lighting / appliances)
- ENERGY STAR Rebate Finder (nationwide): ZIP-code search for appliance, lighting, HVAC, water-heating, smart-thermostat, and EV-charger rebates. energystar.gov — rebate finder.
- Xcel Energy — Home Rebates hub: Discounted LEDs, appliance recycling, smart thermostats, and other residential offerings.
- CenterPoint Energy (MN) — gas rebates: Air sealing, insulation, windows, HVAC, water heaters, thermostats. CenterPoint — efficiency programs.
- Minnesota Power — Rebates: Annual published rebate tables (calendar-year deadlines).
- Minnesota Energy Resources — Rebates: Air sealing, insulation, windows + more.
- Moorhead Public Service / Bright Energy Solutions: Residential and business rebates.
- Municipal utility rebates: Cities like North St. Paul publish annual electric-rebate lists for residents (appliances, thermostats, etc.).
Commercial-only incentives
- Federal Investment Tax Credit (Section 48E): Commercial solar projects qualify for the federal Clean Electricity Investment Credit framework. Confirm with your tax professional. IRS — Clean Electricity Investment Credit.
- USDA REAP grants: Up to 50% of project cost for agricultural producers and rural small businesses, plus loan guarantees. Timing matters — the grant has “before you build” rules. USDA — REAP Program.
- Accelerated Depreciation (5-year MACRS): Businesses can typically pair the commercial solar tax credit with accelerated depreciation on qualifying property. IRS — MACRS.
- Xcel Energy — PV Demand Credit Rider (commercial): Demand-metered Xcel customers may qualify (rules apply; generally not stackable with certain other Xcel solar incentives).
- Xcel Energy — Business Lighting & Equipment Rebates: Eligibility varies by equipment and project type.
Net metering: Minnesota's quiet, durable incentive
The biggest ongoing benefit for most homeowners isn't a one-time credit — it's net metering. When your panels make more than your home uses, the surplus flows to the grid and you earn a credit at the retail rate; in the dark months you draw those credits back down. Over a year, a well-sized system offsets the large majority of your usage, and you stop being fully exposed to every future rate increase. We handle the interconnection and net-metering application with your utility or rural co-op.
The commercial & ag credit is time-sensitive.
The 30% federal credit for commercial and agricultural solar is closing. Under the 2025 tax law, projects that began construction on or before July 4, 2026 keep the full credit on a four-year build window. Projects starting after that must begin construction by December 31, 2026 and be placed in service by December 31, 2027 to still qualify — after that, the commercial ITC is gone. If you're a business or farm weighing solar, the window to lock in 30% is now. As always, confirm the specifics with your tax advisor.
- 30% ITC (commercial & ag) — begin construction by July 4, 2026
- MACRS + bonus depreciation
- USDA REAP — grant window under federal review
- Xcel Solar*Rewards + MN sales-tax exemption
Frequently asked.
Is there still a tax credit for home solar?
The federal residential solar tax credit ended December 31, 2025 — there is no federal credit for new homeowner-owned systems in 2026. Commercial & agricultural projects still have the 30% ITC, but it's time-limited (begin construction by July 4, 2026, or in service by Dec 31, 2027). We never bake a credit that doesn't apply into a homeowner quote.
What is REAP — and can I get it now?
The USDA Rural Energy for America Program has historically granted funding to farms and rural businesses for solar. As of 2026 the grant program is paused and under federal review (loan guarantees remain), and policy is shifting against solar on productive farmland. We track the status and tell you exactly where it stands for your project.
What is Xcel Solar*Rewards?
An Xcel Energy production incentive that pays for the solar energy your system generates, on top of net-metering credit. Availability and the per-kWh rate change with program capacity — we check current status and help you enroll.
What is MACRS depreciation?
For commercial and agricultural systems, solar is depreciable business property. 5-year MACRS accelerated depreciation — often with bonus depreciation in year one — recovers a large share of the cost through tax savings, stacked on top of the 30% ITC. (Your CPA confirms how it applies; we provide documentation.)
Is there a Minnesota state solar rebate or tax credit?
There's no statewide residential cash rebate in 2026, but Minnesota has two valuable standing breaks (below) plus utility programs like Solar*Rewards Income-Qualified solar. We'll map what actually applies to you.
Do I pay sales tax on solar equipment?
No — Minnesota exempts solar electric (PV) equipment from state sales tax, which trims the up-front cost of every system.
Will solar raise my property taxes?
No. Minnesota offers a property-tax exemption on the value solar adds to your home — your assessment doesn't go up because of the system, even though your home value typically does.
What is net metering — is it an incentive?
Effectively, yes. Minnesota credits the surplus power you send to the grid at the retail rate. Summer overproduction banks against winter use, so a well-sized system offsets the large majority of your annual bill. We handle the interconnection and net-metering setup with your utility or co-op.
Is there income-qualified or low-cost solar?
Yes — through Xcel's Solar*Rewards Income-Qualified program, eligible families can go solar at little to no cost and dramatically cut or eliminate their electric bill. iSolar has helped income-qualified Minnesotans go solar since 2020. Ask us if you may qualify.
What about Solar for Schools or public buildings?
Minnesota runs Solar for Schools and solar-on-public-buildings grant programs that help districts and municipalities put solar on public facilities (like the array we built at Edina City Hall). We help eligible organizations pursue them.
Our nonprofit/school has no tax liability — can we still benefit from the ITC?
Yes — tax-exempt organizations can receive the value of the 30% ITC through elective (“direct”) pay, or go solar via a power-purchase agreement where a third party uses the tax benefits and you simply buy cheaper power.
How do I find out what I qualify for?
Book a free assessment. We review your property, utility and goals and give you a straight, written breakdown of every credit, exemption, rebate and program that actually applies — no inflated promises.
Ready to lock in your energy costs?
Family-owned, Minnesota-based, here for the long haul. Free, no-pressure assessment.