Minnesota Solar Energy Incentives

Xcel Solar Rewards (expires end of 2018)
– PV: $.08 / kWh produced (paid annually over 10 years)
– size: 20 kw-DC or less (not over 120% on-site consumption)

Minnesota Power – SolarSense Solar Rebate Program
– Increased allocation to $530,000 for 2017 and approved through 2019.
– Upfront rebate is based on production estimate including tilt, azimuth and shading.
– Base incentive is $0.94/kWh for 2017 and is First Come, First Served.
– System size up to 20kw DC.

Investment Tax Credit (ITC)
– PV: 30% thru 2019, 26% through 2020, 22% through 2021, 10% there after
– (Residential Renewable Tax Credit) PV: 30% through 2019, 26% through 2020, 22% through 2021, none after

Owatonna Public Utilities – Solar Rebate Program
– With the Conserve and $ave Program
– $.50 per installed watt ($500 per kW) of solar up to 10 kW systems.
– Requires interconnection agreement, shading analysis, energy analysis, and invoice for the cost of the system.

Rochester Public Utilities – Solar Rebate Program
– With the Conserve and $ave Program, same as the Owatonna rebate program.
– $.50 per installed watt ($500 per kW) of solar up to 10 kW systems.
– Requires interconnection agreement, shading analysis, energy analysis, and invoice for the cost of the system.

Austin Utilities – Solar Rebate Program
– With the Conserve and $ave Program, same as the Owatonna rebate program.
– $.50 per installed watt ($500 per kW) of solar up to 10 kW systems.
– Requires interconnection agreement, shading analysis, energy analysis, and invoice for the cost of the system.

Brainerd Public Utilities – Renewable Energy Incentive
– Rebates at $2/watt installed, up to $4,000
– Systems limited to 40 kW.

Moorhead Public Service Utility – Renewable Energy Incentive
– Up to $1,500 per kW installed.
– Applicable systems must meet Moorhead Public Service Interconnection standards.

Shakopee Public Utilities – Commercial and Industrial Energy Efficiency Rebate Program
– $1.25/ installed watt rebates for commercial Shakopee Public Utilities customers.
– Maximum $5,000 per business account.

New Ulm Public Utilities – Solar Electric Rebate Program
– $1 per watt, for new systems up to 40 kW.
– Residential maximum rebate is $2,000

Dakota Electric Solar Installation Rebate
– Rebate of $.50 per watt for installed capacity.
– Does not exceed $4,000
– Rebate is credited to monthly bill as $.08 per kwh produced up to the rebate amount or 10 years, whichever occurs first.

Grand Rapids Public Utilities Commission
– PV: $.50 / watt (max $4,000)
– paid by $.08 / kWh over 10 years (or until max is reached)

2017 Made in Minnesota Solar Pv Incentives

For the forth year, the Minnesota Department of Commerce is managing the Made in Minnesota solar PV incentive.

2014 was the first year for people in the Xcel, Ottertail, Minnesota Power or Alliant Energy utilities to get an incentive for installing solar pv on their homes, in businesses, or government buildings.

Now, for the forth year, there is a total of 15 million dollars up for grabs to be split between residential solar PV installations, and commerical, non profit and government. Everyone who applies for the Made in Minnesota incentive will be entered into a lottery if the demand for incentive money exceeds supply. Each applicant who receives a Made in Minnesota solar pv incentive will have up to one year to have their project installed. The application period goes from January 1 – February 28, 2017.

 

Made-In-Minnesota (expires end of 2023)
– PV: production based (varies by module manufacturer)
– size: Residential: up to 10kw DC
– Non-Residential: up to 40kw DC
- Federal Business Energy

The 2017 rates for Made in Minnesota are as follows.

iTek 295w and 300w  MiM Modules:

For-Profit Businesses – $0.11/kWh (10 years)

Non-Profit Organizations – $0.14/kWh (10 years)

Residential – $0.18/kWh (10 years)

Heliene 260w, 290w and 320w MiM Modules:

For-Profit Businesses – $0.10/kWh (10 years)

Non-Profit Organizations – $0.14/kWh (10 years)

Residential – $0.16/kWh (10 years)

More information can be found at the link below: https://mn.gov/commerce/industries/energy/solar/mim/

 

More information can be found at the link below: https://mn.gov/commerce/industries/energy/solar/mim/


How Does the Made in Minnesota Solar PV Incentive Work?

The Made in Minnesota solar pv incentives are 10 year, production based incentives. This means that each year and every year, for the next 10 years, you or your business are paid for every single KWh your pv array produces.

For most people, this means a check for thousands of dollars for your production!

The way you calculate how much you will be paid for your solar pv system is based on the size of your system. The size of your system is directed by what program you qualify for.

There are three incentive levels within the Made in Minnesota incentive program.

For residential applicants, you may have any size system, up to 10 KW.

The other two levels are for non-profit, governement, and for-profit commerical. Either of these two categories of commerical system can have a solar pv capacity of up to 40 KW.

The way you get paid is that your participating utility must send a production report to the Minnesota Department of Commerce each year. Then, the Made in Minnesota Solar Program administrators will use that amount of energy you created to calculate your production based incentive for the prior year.

When we meet with you in your home or business, we can give you very accurate predictions of what your system will be producing each and every year.

Depending on the panel you choose and the size of the system, we also account for degradation of the panel over time, so you are secure, having very accurate predictions of how big your check will be each year from the Made in Minnesota Solar Program.

You receive your check by July 1st, for your previous years production.


Restrictions and Fine Print You Should Know About for the Made in Minnesota Program

The Made in Minnesota Solar Program is very clear in its guidelines and despite some delays last year in the roll out, the program works great.

We still get many questions from people upfront, especially regarding combining the Made in Minnesota Solar PV Program with other incentives.

Here are some common questions and answers we get about the Made in Minnesota Solar PV incentive program.

  1. “If I live in Xcel territory, can I combine Made in Minnesota with Solar Rewards?”
    Answer: “Sorry… but no. You can only choose one program or the other and cannot receive both programs. One of the intentions of both these incentive programs is to help deploy more solar in Minnesota, by making it more affordable. Since there is a limit on both incentive programs as to the amount of money available, you can’t get both programs.””I have had people mention that some companies suggest applying for both programs. Essentially, they say to reserve your money with Solar Rewards, then apply and see if you get the Made in Minnesota Solar PV award which is usually an accelerated pay back period. This is because Solar Rewards is a first come first served program, while Made in Minnesota is a lottery and you run the possibility of not getting picked.””As a leader in solar pv in Minnesota, at TruNorth Solar, all we can say is that applying for both programs like some people suggest is a gross ethical violation. It is defeating the very spirit of the incentives and by default means that less people will have access to money for solar pv on their home or business.””The vast majority of solar companies will patiently qualify what program fits you best, then discuss your options and suggest which program is optimal for your situation.””Companies who suggest applying for both programs may not only be putting your incentive into jeopardy if they come under future scrutiny, they are directly hurting the entire industry.”
  2. “Can you combine the Federal Tax Credit with the Made in Minnesota Solar PV Program?”
    Answer: “Yes, absolutely!””Of course, speak to your accountant and find out how it applies to you.””The federal tax credit is as close as gift at Christmas as you may ever get from our government. You will recieve a 30% federal tax credit on the total solar pv system cost, before the Made in Minnesota incentives.””The 30% federal tax credit will be reduced to 10% at the end of 2016, so take advantage of this massive help while you can.”
  3. “Which module should I choose… you say there are two approved panels from last year, plus two more… how do I know which is better?”
    Answer: “Good question!””The answer to this question is usually driven by what type of application you have in mind. A commerical flat roof installation will suggest one type of module. While on the other hand, if it is for your home, another type of module may be a better fit.””Price of the module is also an important factor. There are differences in incentive levels that vary widely. The upfront cost, how much cash a person has to lay out upfront, will also be different between the available Made in Minnesota solar modules.””Common sense dictates that you are well served also looking at the company who has manufactured the module and look at their track record.””The Minnesota Department of Commerce has chosen the companies carefully and want this program to succeed in Minnesota. You as the owner of your own solar pv array, using Made in Minnesota approved modules also have to feel confident about the company and feel you understand the differences in upfront costs… incentive amounts… time in business and quality of manufacturing… and knowing they will be there for you to honor a warranty down the road.””The best way to choose which Made in Minnesota module is the best for you is discussing your goals and criteria with the installation company you choose. Here at TruNorth Solar we realize there may well be more than one choice for you and seek to find the best module at the best value for your specific project.”
  4. “How Long Will I Get the Made in Minnesota Solar PV Program Incentive Checks for?”
    Answer: “10 years.”After 10 years, you will still be producing clean energy and offsetting your home or business’s electric bill with solar pv. You will continue to produce energy from the sun for years and years to come!”For more information on how the Made in Minnesota Solar PV incentive makes solar more affordable to have than ever before, please call or contact us. We are good listeners and are passionate about solar pv and the potential impact your project may have for you and our state.

Contact us today to discuss if solar pv makes sense for you or your business.

 


Solar*Rewards

The Solar*Rewards incentive with Xcel Energy is paid annually at 8 cents per kwh produced in your solar photovoltaic system over 10 years. In addition to the annual incentive payments, you will be lowering your electricity bill as your array produces power. If you produce more than you consume in any given month, excess kilo-watt hours will show up as a credit on your bill.

Qualifications Needed:

  • You must be an electric residential or business customer of Xcel energy.
  • You’re not allowed to participate in both the Made in Minnesota incentive program and the Solar*Rewards program.
  • Your system must be connected to the electrical grid (sorry no batteries).
  • Your system must be less than 20 kW.
  • Solar thermal systems are not allowed.
  • Your system must produce less than 120 percent of the customer’s annual energy use, based on the past 12 months of energy use.
  • As part of the Solar*Rewards contract, customer agrees to convey all of the Renewable Energy Certificate (REC) credits produced by the system to Xcel for the 10 year term.

How to get approval for funding:

  • Contact TruNorth Solar today to get your application started! System must meet all Xcel requirements.
  • Our team will handle all of the paperwork to complete the Solar*Rewards application, including a valid line diagram and site plan for the proposed site.
  • Once approved, we construct the array, handle all of the proper inspections and order your Solar Rewards meter from Xcel.
  • Next thing you know, your have your own clean energy power production facility on site!

Federal Solar Investment Tax Credit

The Solar Investment Tax Credit is a 30 percent tax credit offered on solar systems by the Federal government, that was set to expire in 2017.

There was a provision in theDec. 2015 federal spending bill to extend the Solar Investment Tax Credit (ITC), as well as a similar tax credit for wind power, for 5 more years in total. The tax credit applies to projects that have begun construction. In the past, the ITC applied only to projects that had been completed.

According to the omnibus spending bill text, the breakdown of tax credit percentages works out like this. For three years (Jan. 2017 – Jan. 2020) the tax credit will be 30% of the cost of the system. After this, the tax credit will begin to phase-out. In 2020, the tax credit will be 26% of the cost of the system. In 2021, the tax credit will be 22% of the cost of the system. In 2022 the tax credit will be 10% of the cost of the system. The tax credit will end in January 2023.