Minnesota Energy Incentives & Financing
Below are a variety of Minnesota energy incentives and financing options and for residents in 2026 you can take advantage of to reduce your overall cost.
Minnesota Energy Incentives
Incentive
Terms
Solar
Net Metering
When your solar system produces more energy than your home consumes, the extra energy is sent to the grid for full retail credit on your bill.
*Available to every Minnesota resident
Xcel Solar Rewards Program
For the first 10 years after you install your solar system every kilowatt of energy you produce, regardless if you use it or not, will receive an $0.03 credit back towards your bill.
*Limited funds available, ask if you qualify!
Dakota Electric
$500 rebate on your solar installation.
Shakopee Public Utilities
$500 rebate on your solar installation.
Owatonna Public Utilities
$500 rebate on your solar installation.
Austin Public Utilities
$500 rebate on your solar installation.
Solar State Sales Tax Exemption
Minnesota exempts solar energy systems from state sales tax, providing an additional 6.875% savings on the total system cost!
For the average homeowner, this could result in savings of $1,000 or more.
Commercial Solar Federal Investment Tax Credit [ITC]
*Solar & Batteries
Allows businesses to deduct 30% of the total solar installation cost from their federal taxes, significantly reducing upfront expenses.
The ITC is available for systems that begin construction before July 4, 2026 or systems that are fully operational before December 31, 2027.
Modified Accelerated Cost Recovery System [MACRS]
*Solar & Batteries
Allows businesses to depreciate the cost of the system over five years, reducing taxable income and providing significant tax savings.
Batteries with a capacity of at least 5 kWh are eligible for the 30% ITC and MACRS depreciation, even if its not charged 100% by solar.
Batteries
Minnesota Department of Commerce Energy Storage Incentive
Get $250 off per kWh from your home battery system, with a max off of $7,000.
Income Qualified Customers: $1,000 off per kWh, with up to $15,000 off your entire home battery system
Xcel Battery Incentive
Get $175 off per kWh, with a max of $5,000 off your home battery system.
Income Qualified Customers: $370 per kWh of energy capacity
City of Edina Energy Incentive
$1,000 reimbursement for residents and businesses that have energy storage paired with solar or add a battery post solar install.
Cost share reimbursement program funded by the Community Action Fund
City of St.Louis Park Incentive
A cost share program available for residents and businesses. $1,000 off of base rate or $1,500 off an environmental justice rate for energy storage paired with a solar installation or adding a battery on an existing solar system.
Funds are based off of your homes efficiency score, and an energy audit would be conducted by the Home Energy Squad.
Smart Panels
Xcel Smart Panel Incentive
Get $1,500 off for upgrading your electrical panel.
Minnesota Department of Commerce Grant Program
*Waiting for approval from Department of Energy
Electrical panel upgrade to increase capacity to 200 amps or more and the installation of a smart panel.
$3,000 for households where annual income is less than 80% of median income
$2,000 for a households where annual income is less than 150% of median income
Ev Chargers
Owatonna Public Utilities EV Chargers
$500 off for your first EV charger and $150 off for each additional electric vehicle you own.
Minnesota Energy Financing Options
Loan
Terms
MNCEE Residential Solar Loan
- Covers loan amounts up to $60,000
- Terms up to 15 years
- Can cover 100% of your project costs
HELOC
- Affinity Plus Credit Union Learn More
- Blaze Credit Union Learn More
- Mayo Employees Federal Credit Union Learn More
MHFA Home Energy Solar Loan
- Covers loan amounts up to $60,000
- Terms up to 20 years
- Can cover 100% of your project costs
Property Assisted Clean Energy [PACE]
- Covers commercial projects only
- Includes solar, batteries, & smart panels
- Maximum loan is 30% of property value
- Terms up to 30 years