Solar Financing in Minnesota: OneEthos vs. Loans, Leases & PPAs

Most Minnesota homeowners going solar don’t pay cash. That’s not unusual. A typical residential solar installation is a significant investment, and financing makes the economics work for most households. The real question is: which financing option is right for you?

The options available to an Xcel Energy customer in Minnesota include cash purchase, home equity loans, solar-specific loans like OneEthos, lease agreements, and power purchase agreements (PPAs). Each has real trade-offs. This guide lays them out honestly so you can make the decision that fits your situation, not the one that’s easiest to sell.

The Options at a Glance

The biggest dividing line in the table: ownership vs. non-ownership. This matters for incentives, home value, and long-term cost.

Cash Purchase

If you have the capital, paying cash is the most financially straightforward option. You own the system outright, you receive the full you qualify for Xcel’s Solar*Rewards monthly payments, and every dollar of electricity your system produces is savings with no payment to offset it.

Who it fits: Homeowners with available savings or liquid assets who want the simplest long-term economics and maximum ROI.

Who it doesn’t fit: Most people. Tying up that much capital isn’t practical for every household.

Home Equity Loan or HELOC

Borrowing against your home’s equity to fund solar is a traditional approach with real advantages: interest rates are typically lower than unsecured loans, interest may be tax-deductible (consult your tax advisor), and you retain full ownership of the system with access to all incentives.

Who it fits: Homeowners with significant equity, strong credit, and comfort using their home as collateral.

Who it doesn’t fit: Homeowners who’ve recently purchased, have limited equity, or prefer not to put their home on the line for this kind of purchase.

OneEthos Solar Loan

OneEthos is a solar-specific loan program designed around how solar financing actually works rather than adapted from a general consumer loan product. You own the system, you receive all applicable Minnesota incentives, and you make fixed monthly payments over the loan term.

The practical advantage over a home equity option is that your home isn’t used as collateral. For homeowners who don’t want to borrow against equity (or don’t have enough of it), OneEthos is often the cleanest path to system ownership.

Who it fits: Homeowners who want to own their system but prefer not to use a home equity product. Good credit profile helps secure the best terms.

Who it doesn’t fit: Homeowners who would qualify for significantly better rates through a home equity product, or those with limited credit history.

Solar Lease

A solar lease works like leasing a car: the solar company owns the system, installs it on your roof, and charges you a fixed monthly payment to use the electricity it produces. You don’t own the panels, you don’t receive the Xcel Solar*Rewards payments or incentives (the installer does), and you’re typically locked into a 20-25 year agreement.

What you gain: Lower or zero upfront cost. Fixed monthly payments that may be less than your current electric bill at the start.

What you give up: Ownership. Flexibility: leases complicate home sales and require the new owner to assume the agreement or buy it out.

Who it fits: Homeowners with no realistic financing path to ownership who prioritize simplicity over long-term financial optimization.

Who it doesn’t fit: Homeowners who want to maximize ROI, plan to sell their home in the next several years, or qualify for ownership-based financing.

Power Purchase Agreement (PPA)

A PPA is similar to a lease, but instead of paying a fixed monthly amount, you pay for the electricity the system produces at a set rate per kilowatt-hour, typically below your utility rate at the start, with an annual escalator built in.

PPAs can look attractive early in the contract. The escalator is the variable to watch: if your utility rates don’t increase as projected, or if the escalator is steep, the economics can shift significantly over the 20-25 year term. Like a lease, the installer owns the system and captures the Solar*Rewards benefits.

Who it fits: Homeowners who want potential savings without upfront cost and are comfortable with a long-term variable rate agreement.

Who it doesn’t fit: Anyone prioritizing ownership, incentive capture, or flexibility.

How the Incentives Stack Up for Owners

For homeowners who choose an ownership path (cash, home equity loan, or OneEthos), the available incentives in Minnesota are:

Xcel Solar*Rewards. Xcel Energy customers receive monthly payments for electricity fed into the grid, in addition to net metering bill credits. Program capacity limits apply; your installer can confirm current availability.

Net metering. Excess electricity your system produces goes back to the grid and Xcel credits your bill at the retail rate, offsetting usage during low-production periods.

Minnesota solar property tax exemption. The added home value from solar is exempt from property taxes under state law.

None of these incentives are available to homeowners in lease or PPA arrangements.

Frequently Asked Questions About Solar Financing in Minnesota

What is OneEthos and how does it work?
OneEthos is a solar-specific loan program that Centauri offers to qualifying customers. It’s designed around residential solar purchases. You own the system, retain all incentives, and make fixed monthly payments over the loan term. Your home is not used as collateral. Learn more on our OneEthos page.

Should I buy or lease solar panels in Minnesota?
Buying through cash, a home equity loan, or OneEthos almost always delivers better long-term value. Owners receive Xcel Solar*Rewards payments, which are not available to leaseholders. Net metering bill credits apply either way. Leasing makes sense mainly for homeowners who genuinely have no path to ownership financing.

Can I receive Xcel Solar*Rewards with a solar lease or PPA?
No. Solar*Rewards payments go to the system owner. Net metering credits still apply to your bill under Minnesota law.

What credit score do I need for solar financing in Minnesota?
Requirements vary by lender. OneEthos and similar solar loan programs typically look for good to excellent credit, but specific thresholds vary. A Centauri advisor can walk you through what you’d likely qualify for based on your profile before you commit to anything.

How does solar financing affect my home’s resale value?
Owned solar systems typically increase home resale value and are exempt from Minnesota property taxes under state law. Leased systems are more complicated: the lease transfers to the new owner or must be bought out, which can complicate or slow a sale. This is worth factoring in if you expect to sell within the loan or lease term.

Which Option Is Right for You?

If you can qualify for OneEthos or a home equity loan, ownership almost always wins on long-term economics. The incentives available to owners are substantial, and a financed system’s monthly payment is often comparable to or lower than your current electric bill, with a defined payoff point and full ownership at the end.

Centauri Systems walks every prospective customer through all of these options before making any recommendations. If you’re also weighing battery storage, our Minnesota solar battery guide covers how batteries factor into the financing and payback math. To understand the full incentive picture first, see our 2026 Xcel Energy solar incentives guide. If you want a real numbers comparison for your home and situation, visit solarbycentauri.com or give us a call. No pressure, just a straight conversation.