Incentives
Minnesota residents looking to install solar panels in 2025 can benefit from a combination of federal, state, and utility incentives that significantly reduce upfront costs and enhance long-term savings. Here’s a concise overview:
Federal Solar Panel Installation Incentives
Federal Solar Panel Investment Tax Credit (ITC). Homeowners can claim a 30% tax credit on the total cost of solar installation, including equipment and labor. Other attached services such as battery installation and tree removal are also included. For example, a $22,000 system would yield a $6,600 credit (this is a dollar-for-dollar return, not a write-off). This credit can be claimed all in one year or spread over up to 5 years.
Minnesota Solar Installation Incentives
- Net Metering: All Minnesota utilities must offer net metering for systems up to 40 kW. Excess energy is credited at the retail rate (the same price you pay), reducing future electricity bills or returned as a check to you.
- Sales Tax Exemption: Minnesota and Wisconsin exempts solar equipment from the 6.875% state sales tax, saving approximately $1,500 on a $22,000 system.
- Increased Property Value: The average home in MN increases in value by over 6.9% compared to a similar home without solar and sells an average of over 13% faster.
- Property Tax Exemption: The added home value from solar installation is exempt from property tax assessments, ensuring increased home value without higher taxes.
Utility Programs & Local Rebates
Xcel customers can receive $0.03 per kWh of solar energy produced annually for 10 years, totaling over $3,000 for an average system. Income-qualified customers may receive up to $23,000. Many other local utilities offer rebates or incentives above and beyond net-metering. Contact us to see if what your utility offers!
Up to $5,000 rebate based on first-year energy production.
Austin, Dakota Electric, Rochester, Owatonna: Rebates ranging from $500 to $1,200 for qualifying installations. Contact Champion Solar for rebate opportunities in your area.
Battery Energy Storage Rebates
Xcel Customers: $175 per kWh of storage capacity, up to $5,000; income-qualified customers may receive $370 per kWh.
Non-Xcel Customers: $250 per kWh, up to $7,000; income-qualified customers may receive $1,000 per kWh, up to $15,000.
Great Solar Financing Options
Two questions Champion Solar is often asked by homeowners interested in going solar is “how do I pay for it” and “what solar tax incentives, grants, and rebates can I get?” The good news is there are incredible solar financing options. Champion Solar will help you find the best options and navigate each step in the process. In the meantime, please explore the solar financing options below.
Champion Solar Panel Installation Service Area Minnesota and Western Wisconsin
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