Installing solar panels may seem out of reach thanks to Minnesota’s cold, snowy winters. But mounting financial incentives combined with rising electricity rates now make household solar energy investments pay off better than ever before.
In this guide, we’ll breakdown every way you as a homeowner can maximize savings on a solar installation in the Land of 10,000 Lakes.
You’ll discover:
- Projected long-term savings from grid-tied solar systems
- How state and federal incentives can cut your investment nearly in half
- The truth about buying vs. leasing panels in Minnesota
And much more! With solar exploding across MN recently, I’ll share everything you need to join your neighbors and finally tap into free, renewable power.
Solar Savings in Minnesota Are Heating Up
Beyond the state’s frigid temperatures lies a bright future for solar…
Over the last decade, installed solar capacity in Minnesota has grown exponentially year over year thanks to sweeping policy support. Residential systems alone now contribute over 75 megawatts (MW) of clean energy across MN rooftops.
By 2028, analysts predict we’ll cross over 1 gigawatt (1,000 MW) of total solar capacity state-wide as adoption rates continue rising. That‘s enough to offset electricity use in 120,000 local homes!
Driving this momentum are plunging solar equipment costs combined with attractive financial incentives to make payback periods increasingly competitive:
{{Image_PriceDeclines}}
With incentives cutting costs nearly in half in many cases, the case for household solar strengthens by the day. Once your panels get installed, they‘ll keep producing free renewable energy for 30+ years!
Let‘s take a closer look at what exactly makes the solar economics pencil out now more than ever…
Federal Solar Investment Tax Credit
The biggest savings opportunity comes via a nationwide incentive – the federal solar investment tax credit (or ITC). This program offers homeowners a dollar-for-dollar cut in their income taxes equal to 30% of a new solar system‘s total costs.
Since being introduced back in 2006, the ITC has turbocharged solar adoption making installations far more affordable. And the incentive still remains at the maximum 30% rate until 2032 before stepping down incrementally over the next 4 years:
{{Federal_ITC_Details}}
For a typical home installation running around $18,000 in MN, claiming the full ITC would save you $5,400 off the overall price! As you‘ll see next, combine that with additional state incentives, and suddenly half the entire solar investment gets wiped away instantly.
Now the fine print requires that you must own the panels outright, not lease them from some solar company. If taking out financing to pay for panels, loan documents need to show you as the official equipment owner. As long as you can fulfill ownership requirements, make sure to seize this huge 30% ITC over the next decade before it declines.
Okay, got the essential federal solar credit locked in providing up to $5k+ back in tax savings. Now let‘s uncover some even more local programs…
Stack On MN State & Utility Solar Incentives
In addition to the nationwide federal ITC, Minnesota offers a growing suite of state-level solar incentives for residents:
Utility Rebate Programs
Depending on your local electric utility provider and where you live in MN, over a dozen separate solar rebate programs exist offering around $0.15 back per watt of panels installed. For a standard home array size of 6,000 watts (6kW), that could mean $900 off instantly!
Check out some of the highest utility rebates available around Minnesota:
{{MN_Utility_Rebates}}
WOW! With over $500 back on even smaller systems, make sure to check with your utility to grab this fast cash.
Solar*REWARDS from Xcel*
For residents served by utility giant Xcel Energy, signing up for their SolarREWARDS program earns $0.07 per kWh** generated for 10 full years. With incentive rates typically capped each year, this reliable extra income stream gets paid on top of electricity savings.
Net Metering Bill Credits
As a solar owner, any surplus energy your panels feed back to the grid turns your home electricity meter backwards, earning you credits. State law forces Minnesota utilities to pay out those credits at full residential retail electricity rates. So if you overproduce into the grid regularly, expect nice utility bill refunds each month!
Tacking on all those extra refunded dollars and cents makes embracing solar energy in Minnesota only more profitable. And we‘ve still got a couple more savings-expanding programs coming too…
{{Image_SolarHome}}
Breaking Down a MN Solar Investment
Now that we‘ve highlighted the main incentives slashing overall costs, let‘s examine closer what a full solar installation really entails. Below you‘ll find an overview of average price ranges for key components that factor into a Minnesota household solar investment:
{{MN_Solar_Cost_Breakdowns}}
Based on typical home installation specs, you can expect an out-of-pocket investment spanning…
| System Size | Pre-Incentive Price |
|---|---|
| 4 kW | $12,600 |
| 6 kW | $18,900 |
| 8 kW | $25,200 |
But remember Uncle Sam provides up to 30% back via the federal tax credit. So for a robust 6 kW system build to meet full electric needs, you instantly save $5,670 chopping the net price down to $13,230!
Then stack on your utility or state solar rebates alongside projected long-term power bill savings and carbon-free energy for decades, and you’ve got an incredible home upgrade investment.
Let’s connect a few more savings dots…
Model Your Total MN Solar Incentives & Savings
Between mounting rebates, federal tax credits, and long-term utility bill reductions, accurately projecting your complete Minnesota solar incentives package gets tricky.
Luckily, our new Minnesota Solar Calculator makes it easy to compare system sizes and crunch the numbers to maximize returns.
{{SolarCalculator}}
The interactive tool layers on all available state and federal incentives while estimating 30-year electricity savings tailored to your home’s needs. Adjust inputs like your latest utility bill, system size, projected electric rates increases and more to reveal:
- Out-of-pocket solar investment
- Available tax credits & rebates
- Electricity savings over next 30 years
- Net profit after incentives & ownership period
Once included, you can see incentives often cut initial solar costs almost in half while powering your home for free for decades after payback!
Try out different scenarios and see first-hand how stacking savings makes solar energy investments profitable in the Land of 10,000 Lakes.
Should You Buy vs. Lease Solar Panels in MN?
With confidence around overall investment costs and returns from modeling incentives, a common question becomes whether to purchase solar panels outright vs. entering a lease agreement.
Buying your system requires mustering significant funds up front but earns savings incentives now and electrical savings for years later.,Leasing wins on convenience by eliminating upfront outlays but loses access to tax credits & rebates while paying ongoing lease fees.
Given Minnesota‘s strong incentive programs benefitting direct owners highlighted above in this guide, buying your own panels outright is likely the best financial path. The key is finding a solar loan or financing offer allowing you to pay off panels over time while keeping official title. This maintains ownership status needed for capturing incentives.
As modeled above, buying panels with Finance rates around 3.99% still earn excellent ROI thanks to claiming:
- Federal solar ITC
- Utility rebates
- Net metering credits
- Ongoing electricity bill reductions
Just note leases or agreeing to sell over future power production (like PPAs) cuts off these money-saving programs. Avoid the extra fees and complex contracts of leasing companies and buy instead!
Join The MN Solar Revolution!
Hopefully by now it’s clear that with the right solar incentives strategy, households across Minnesota stand to profit by tapping into renewable energy.
To recap the essentials:
✔️ Figure 6-8kW systems meet most homes‘ 100% electricity needs
✔️ Claim the 30% federal tax credit before it drops
✔️ Stack on utility solar rebates where offered
✔️ Crunch your complete incentives & ownership forecast with our calculator
✔️ Buy panels directly to maximize ROI over leasing
Finally, don‘t forget solar equipment keeps improving while your utility rates face inevitable increases over the decades ahead. Invest now and lock in free renewable power and energy independence for the long run!
Ready to run your own Minnesota home solar savings projections and get installation quotes tailor-fitted to your needs? Simply click below and let our solar network advisors guide you through the transition!
{{cta}}
