What Homeowners Need to Know About Solar in Minnesota

Residential Solar, Understanding Solar

If you’re a homeowner in Minnesota considering a switch to solar energy, you’re in for an exciting journey. With the Land of 10,000 Lakes experiencing abundant sunshine throughout the year, solar energy is increasingly becoming a viable and sustainable option for many Minnesotans. Here’s everything you need to know to make an informed decision about solar power in Minnesota.

1. Understanding Solar Potential in Minnesota

While Minnesota isn’t known for its sunny weather compared to places like Arizona, it still receives a significant amount of sunshine annually. The state’s solar potential is growing, with advances in solar technology making it more efficient even in less sunny conditions. Solar panels are capable of generating power even on cloudy days, so you can still benefit from solar energy despite the often variable weather.

heatmap of solar potential on roofs in Eagan Minnesota using the tool from Project Sunroof

2. State Incentives and Rebates

The United States and Minnesota offer several incentives to encourage homeowners to adopt solar energy:

  • Solar Rewards Program: This program provides cash incentives for the amount of energy produced by your solar system. Managed by Xcel Energy, Solar Rewards is available for both residential and commercial solar projects.
  • Property Tax Exemption: Solar energy systems are exempt from property taxes in Minnesota, meaning you won’t see an increase in your property taxes as a result of installing solar panels.
  • Federal Investment Tax Credit (ITC): On a federal level, you can receive a tax credit of 30% of the cost of your solar system. The federal solar tax credit is set to gradually decrease in the coming years, so it’s beneficial to take advantage of it sooner rather than later.

3. Net Metering

Net metering is a system that allows you to send excess electricity generated by your solar panels back to the grid. In return, you receive credits on your electricity bill. Minnesota has a net metering policy that helps ensure homeowners get fair compensation for the solar power they contribute to the grid.

heatmap of solar potential on roofs in Minnesota using the tool from Project Sunroof

4. Choosing the Right Solar System

When selecting a solar system, there are a few important factors to consider:

  • System Size: The size of the system will depend on your energy needs and the amount of space available for installation. A solar professional can help you determine the right size for your home.
  • Panel Efficiency: Look for high-efficiency panels to maximize energy production, especially in areas with less sunlight.
  • Local Installers: Choose a reputable local solar installer with experience in Minnesota’s climate. They’ll be familiar with local regulations and incentives, ensuring a smoother installation process. Centauri Systems is easy to work with. They have a top rating from both customers and EnergySage as an Elite+ Installer.
Centauri Systems was selected as Minnesota's Local Installer of the Year 2024 by Energy Sage

Did you know: Centauri Systems is Minnesota’s Local Installer of the Year.

5. Financing Options

Choose how you’d like to finance a solar energy system:

  • Cash Purchase: Paying upfront can provide the best return on investment, as you’ll own the system outright and benefit from all the savings.
  • Solar Loans: These loans allow you to spread the cost over several years. Look for loans with favorable terms and low interest rates. A good solar contractor will share options that are favorable for Minnesota homeowners.

6. Maintenance and Longevity

Solar panels are known for their durability and low maintenance requirements. Our systems come with a backed 30 year warranty, ensuring they’ll perform efficiently over their lifespan. Regular cleaning and occasional inspections can help maintain optimal performance.

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