Solar & Net Metering Policy
Net metering is available in Minnesota, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Systems under 40 kW receive retail rate compensation. Minnesota does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value and a sales tax exemption on solar equipment.
Net Metering Notes
Systems under 40 kW receive retail rate compensation.
Utility Rebate Details
Xcel Energy's Solar*Rewards program offers performance-based incentives.
Does Minnesota have net metering?
Yes. Minnesota has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Systems under 40 kW receive retail rate compensation.
What solar tax credits are available in Minnesota?
Minnesota does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Minnesota?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Minnesota for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Minnesota?
Yes. Minnesota offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in Minnesota?
Yes. Minnesota exempts solar energy equipment from state sales tax, which can save several percent on the upfront cost of your system.
Does Minnesota have an SREC market?
Minnesota does not currently have an active SREC market. Solar owners in Minnesota cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Minnesota?
Yes. Utility rebates are available in Minnesota. Xcel Energy's Solar*Rewards program offers performance-based incentives.
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Official Source
Minnesota Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.