Finding the right rebates, incentives, tax credits, and benefits for your solar installation is just as important as finding the right solar panels and solar installers.
At Sun Badger Solar, we know there are some great incentives and benefits out there, and it’s our mission to help you find what’s best for you.
In Minnesota, when you purchase a solar panel system or any other solar energy system, you will not be required to pay sales tax on that purchase. This is a great incentive because it means more money in your pocket after buying your Minnesota solar panels!
You might not think of this as significant savings or incentive, but sales tax is actually at a rate of 6.875%. That means you’ll save big if you’re buying solar equipment that could total $10,000 to $40,000.
Net metering is a great way to get paid for excess energy that you generate with your solar energy system. In short, this means that the electric company will pay you if your panels are generating more electricity than what you need at any given time. Not all utility companies participate in net metering, but those that do will help you save big!
You can take advantage of net metering and get paid for the excess energy you produce each month, but if your power company isn’t paying for that electricity you can install a solar battery bank to store the electricity for future use.
Federal Solar Tax Credit
A federal solar income tax credit of 26% is available to homeowners that install solar on their property. This credit is set to expire in 2022, but it has been extended in the past, and in some cases, there is still a smaller percentage tax break. For example, in 2023 you can still expect a 22% federal tax credit.
It’s important that you act quickly if you’re interested in saving money on your solar installation and taking advantage of a federal income tax credit for your Minnesota solar energy system. The percentage you’ll receive in credit comes from the total cost of your solar energy system. All costs related to your solar installation can be included in this percentage return. That means you’ll be able to get your total credit amount from the cost of your solar equipment, any tree trimming you need done, installation, roof work, and more.
Xcel Energy Program
If you’re a Minnesota homeowner, and you want to make the switch to solar and no longer solely depend on Xcel Energy, then there’s good news. By switching to solar energy with Sun Badger Solar, it will save you money each month on your electric bill.
Xcel Energy offers two different solar rewards programs that you can be a part of if you’re already an Xcel Energy customer. The first is their community program. To be a part of the solar community program, you’ll need to find a solar garden located in your county or an adjacent county. You can then subscribe to that solar garden and receive monthly bill credits from Xcel Energy. You can learn more about the program here.
The second is their solar reward program. Through this program, you can receive performance incentives for your solar energy system based on how many kWh the system produces over time. There are some prerequisites to this program. Be sure to check on the program specifics and see if you’re eligible.
The Solar Sense program offered by Minnesota Power provides rebates that help to reduce the upfront costs of installing solar energy products. This rebate program helps to provide customers with rebates that make the cost of installing solar much less expensive.
To be a part of this program, you’ll need to meet their qualifications, but the program allocates more than $350k to rebates for those who do qualify. The biggest qualification for this system is that you’re a Minnesota Power Customer and in good standing with them. Other than that, you just need to install a system that meets their specifications.
If you let Sun Badger help you create a solar plan for you, we’ll help you take advantage of the solar benefits and incentives around your area. We’ve been serving Minnesota for years, and our representatives are well versed in the benefits and offers throughout the state.