Minnesota Solar Incentives
Rebates & Credits
Your guide to
Rebates & Credits
Take advantage of robust incentives that are set to make a significant impact. Homeowners who choose to adopt solar systems onto their properties are eligible for substantial incentives, including attractive rebates from utility companies, state-level tax exemptions, net metering and the satisfaction of harnessing the sun’s energy to power your residence.
LEADING RESIDENTIAL
Utility Rebates & Tax Incentives
Unlock exceptional benefits with the leading utility rebate programs in Minnesota. These offerings, alongside others, can be explored by requesting a personalized solar quote, providing insight into your eligibility for various rebates and credits.
No MN Sales Tax
Purchases of solar energy systems in Minnesota are exempt from state sales tax, reducing the upfront cost of installing solar panels.

Xcel Energy
$0.05 per kWh
Solar*Rewards provides this rebate for up to a decade based on your system’s energy production – translating to an average of $6,250 over 10 years in a 10kW system.

Main Service Panel Upgrade Rebate
If your home needs a main service panel upgrade, Xcel Energy offers a rebate of up to $1,500 toward it. Ask us whether your project qualifies.
Net Metering
Net metering in Minnesota allows homeowners with solar panels to sell excess electricity back to the grid at the retail rate, earning bill credits that help offset future energy costs.

Dakota Electric
$500 installation rebate
In addition to the $500 installation rebate, you may also be eligible to be paid for selling some of your excess solar energy back to Dakota Electric.

Minnesota Power
SolarSense program reduces the initial installation costs, promoting the feasibility of solar energy adoption. SolarSense is available to customers installing a solar electric photovoltaic (PV) system.
RESIDENTIAL
City Rebates & Other Programs
Minnesota residents can benefit from city-specific solar grants like Green Cost Share and income-qualified programs that offer rebates or free solar for eligible households.

Income Qualified
Covers up to 100% of install costs
Can cover up to $3/watt of solar costs for eligible Xcel customers enrolled in programs like SNAP or Energy Assistance.

MNCEE Loans
Available for residents of specific cities
MNCEE partners with many Minnesota cities to bring residents and business owners special lending and grant programs.

Green Cost Share
Minneapolis Residents
Provides financial incentives to residents and businesses for installing solar energy systems, helping to offset upfront costs and support renewable energy adoption.
MINNESOTA BUSINESS
Grants & Other Programs
Minnesota businesses can take advantage of a variety of solar rebates, grants, and incentives to reduce installation costs and improve their return on investment.

USDA Reap Grants
25% of project cost up to $500,000
The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems.

Solar*Rewards
$0.05 per kWh
Solar*Rewards provides this rebate for up to a decade based on your system’s energy production – translating to an average of $6,250 over 10 years in a 10kW system.
No MN Sales Tax
Purchases of solar energy systems in Minnesota are exempt from state sales tax, reducing the upfront cost of installing solar panels.
Net Metering
Net metering in Minnesota allows businesses with solar panels to sell excess electricity back to the grid at the retail rate, earning bill credits that help offset future energy costs. Maximum systems sizes rules apply.

PACE Financing
Commercial Solar Financing
This program allows businesses to finance solar installations through a voluntary assessment on their property taxes, providing long-term, low-interest financing options.

Green Cost Share
Minneapolis Businesses
For businesses in Minneapolis, this program provides funding of up to $50,000 to support rooftop solar installations on commercial, industrial, and multifamily properties.

Income Qualified
Available to non-profit businesses
Can cover up to $1.00/watt of solar costs for eligible non-profits who assist community member participating in programs like SNAP or Energy Assistance.
What is Net Metering?
Net metering allows homeowners to earn credits on their utility bills when their solar panels produce more electricity than they use, causing the utility meter to run backward during the day. These credits can offset electricity costs at night or when solar production is low.
$100
Energy Usage
Minus
$80
Energy Produced
Equals
$20
Amount Owed
$100
Energy Usage
Minus
$80
Energy Produced
Equals
$20
Amount Owed
💡Power Your Home,
💙 Feed a Child for 1 Year
Centauri Systems is committed to more than just clean energy, we’re fighting hunger, too! For every solar installation, we provide a child with meals for a full year through Feed My Starving Children.
FAQ – Rebates & Credits
How do I apply for Minnesota solar incentives?
To apply, you’ll need to check your utility provider’s website for rebate applications, submit necessary documentation, and work with a certified solar installer. Many programs, like Solar*Rewards and SolarSense, have annual funding limits, so applying early is recommended.
Can I get free solar panels in Minnesota?
Yes, income-qualified residents may receive free solar installations through Xcel Energy’s Solar*Rewards Income-Qualified Program. If you participate in assistance programs like SNAP or Energy Assistance, you may qualify for 100% coverage of your solar system costs.
What is the Minneapolis Green Cost Share Program?
The Minneapolis Green Cost Share Program provides financial incentives for solar installations, helping residents and businesses offset upfront costs. This program is designed to promote clean energy adoption and reduce emissions in Minneapolis.
What is the Minnesota Power SolarSense Rebate?
The SolarSense Rebate Program offers financial incentives to Minnesota Power customers who install solar panels, helping lower installation costs. This rebate is awarded via a lottery each year.
How does the Xcel Energy Solar*Rewards Program work?
The Solar*Rewards Program provides annual payments for up to 10 years based on the energy your solar system produces. Homeowners receive these payments as a performance-based incentive, reducing the overall cost of going solar.
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