Minnesota Solar Incentives in 2020
Solar in Minnesota post 2019 is still very viable and affordable. 2020 brings the tax reduction on the ITC (Investment Tax Credit) from 30% down to 26%. There are still several utilities with generous rebates, such as Xcel Energy, and MN Power for 2020, but qualifying is limited.
With the reduction in the Federal tax credit by 4%, the financial impact on solar projects in MN for residential or commercial are not great enough to have much of a impact. 4% only reduces project returns by 1-2 months. Typical MN solar systems have returns equivalent to an 8% annual investment interest, and with a very safe financial risk. As well as a 3-5 year ROI's for systems that are warrantied up to 30 years. Now is a great time to go solar!
Xcel Energy offers a 10 year Solar Renewable Energy Credit of $0.07/kWh with a budget of $10 Million for the year. Next year it lowers to $5 Million, then is set to expire. So with next years lower budget and another ITC reduction to 22%, if you are wanting to go solar 2020 is the year to do it. See if you qualify by clicking here.
MN Power Solar Sense-
MN Power also has a solar rebate that is very limited and based on a estimated production. The rebate is paid up front at about $1/watt or ~35% of the system cost. The rebate goes fast and to see if you qualify you can click here.
Commercial Solar in MN-
Many of the utility rebates do qualify for commercial customers in MN as well as the Federal ITC of 26%. Commercial customers also can take advantage of a Demand Credit Rider and accelerated depreciation of 6 years. Commercial Solar in MN is a great deal, and if you are not interested in tying up the company's cash flow, there are other financing mechanisms that require little or no out of pocket expenses. For more info click here.
Financing Your Solar-
We have partnered with several financial institutions that offer financing for our commercial and residential customers.
Residential- With today's low interest rates, it may make the most sense to contact your mortgage company and look into a 2nd mortgage or refinance. Otherwise, our partners offer solar specific loans that can offer 12 month no payments that may also allow free armitrization so you can finance the bulk of the project less the tax credit. Contact Us for more info on financing.
Commercial- Most of the commercial projects financed in MN are done with a Power Purchase Agreement (PPA) that allows for the project to be owned by a third party and the business simply pays a lower rate for the electricity generated by the system then from the utility. This allows for immediate savings, with no risk, as the company is only paying for what the system produces. For more info on our PPA's, Contact Us.