Minnesota Solar Incentives: What You Need To Know
Solar energy provides about 4% of Minnesota’s total electricity generation.
More and more people in Minnesota are considering installing solar systems and battery storage for their homes. This is both to save energy and to get rid of the unreasonable charging methods of power companies. Other people are doing it to reduce their carbon footprint.
The Federal government and the Minnesota state government provide solar energy incentives. Here are the Minnesota solar incentives that you should know.
In 2004, the United States passed the solar investment tax policy. The tax rebate enables businesses and homeowners to deduct the corresponding cost of solar installations from their federal taxes.
After the expiration of December 31, 2016, the US solar tax credit was reduced from 30% to 26%. In 2021, US Congress enacted legislation to extend the solar investment tax credit (ITC) for two years.
According to the legislation, the ITC is 26% of the system cost until the end of 2022, dropping to 22% in 2023. It will then lower to 10% for major utility investments and commercial projects in 2024. Companies starting construction on projects in 2021 will still have four years to bring their projects into service to benefit from the ITC resetting the statutory deadline for projects in service.
Furthermore, the legislation would provide additional funding for research and development. This includes covering key soft costs of distributed energy deployment and supporting federal lands for renewable energy projects.
The federal solar investment tax credit (also known as the ITC or investment tax credit) will end in 2024, pending new federal legislation.
You can receive a payment if you transmit electricity into the grid from your solar power system. The amount will be at market rates.
To receive net metering payment, you must know your solar power system’s total energy generation. You also have to calculate your home or business energy requirements. The government will give you credit if there is a surplus.
Any utility in Minnesota will benefit from their net metering regulation. However, they must generate less than 40 kW to be eligible.
The Minnesota renewable development fund offers rewards to homeowners who use solar energy. Your rewards depend on your photovoltaic system’s capacity. You also have to be in the Xcel Energy service area.
Xcel will pay you a specific reward per kilowatt-hour of the power you generate. The reward will be in place for a decade.
You won’t have to pay any associated property taxes for your solar power in Minnesota. This is even though home solar installation greatly increases the value of your property. As a result, you can save about 7% of your property taxes upfront.
Solar panel installation can be a costly project. Fortunately, the US and Minnesota governments offer multiple incentives to aid solar power installation. The Minnesota solar incentives help lower your costs and save on energy bills.
Did you enjoy this article? For more content like this, make sure that you check out the rest of our website now!