News > Incentives Make Solar a Bright Choice for Minnesotans

Incentives Make Solar a Bright Choice for Minnesotans

May 7, 2024

Minnesota’s famously frigid winters leave many residents wondering if solar energy is a viable option here. Surprisingly, Minnesota ranks 13th in the nation for amount of solar installed, which has a lot to do with the incentives available from the state as well as electric utility providers.

One of those incentives is that solar energy is tax exempt in Minnesota. This means if a member were to install a $10,000 system, with sales tax at 6.875%, they could save approximately $700 in sales tax alone.

In addition, although residential solar has been shown to increase a home’s property value, Minnesota homeowners will not see their property taxes increase since the state prohibits solar panels from being included in property tax determinations.

Lastly, Minnesota solar panel owners can participate in net metering or average cooperative retail energy rate (ACRER) which allows them to sell any excess energy generated back to their electric utility. The specific details on Stearns Electric’s co-generation schedule are on our Nova Power Portal Page.

It’s also a good idea to investigate all Minnesota solar incentives that you may be eligible for via the Database of State Incentives for Renewables & Efficiencies.

Federal incentives are available as well, including the Investment Tax Credit for the installation of solar panels. If you install solar, you will be eligible for a 30% tax credit when you file.

Even with all the incentives, installing solar panels is a significant investment, and therefore one that requires a great deal of research to ensure you understand the upfront and ongoing costs associated with solar.

Stearns Electric highly encourages you to contact our DER Coordinator during business hours at (800) 962-0655 or via email at: der@stearnselectric.org to ensure you are getting accurate information. There are many solar installers out seeking business, but not all installers have been vetted and have your best interests in mind. We want our members to be as informed as possible prior to making these decisions.