Innovative Power Systems
Solar made simple.
612-623-3246
Starting January 1, 2006, home owners are eligible for a federal tax credit of up to $2,000 when they purchase a solar electric or solar heating system.
Businesses are eligible for a federal tax credit of up to 30% of the cost of a solar electric or solar heating system purchase- with no system size limit - and accelerated depreciation.
The federal tax credits are currently scheduled to expire at the end of 2008.
The Minnesota Department of Commerce administers a solar-electric (PV) rebate program, funded by Xcel Energy, to buy down the up-front costs of grid-connected solar-electric (PV) systems by $2,000 per kW, with a maximum award of $20,000 per system. Larger systems are eligible on a case-by-case basis.
All grid-connected electric customers in Minnesota are eligible. The MN State Rebate is for $500K for fiscal year 2008 (starting July 1, 2008), until exhausted. Rebate recipients must consent to allowing their electric utility to supply the State Energy Office with documentation of the electricity generated by the solar electric system.
In 2008, the MN State rebate increases to $2.25/watt (DC) for NABCEP certified installations.
Participants must submit an application form to reserve a rebate before performing any installation work.
After receiving confirmation from the Minnesota Department of Commerce, participants have nine months to install proposed systems and obtain approval by electric-utility officials (required) and local code officials (if necessary).
NEW as of July 3, 2008!
3. Minnesota State Solar Hot Water Rebate
Multi-Family Unit Property Owners
Save up to an additional 25% off your system cost!
Residential Customers
Save up to an additional $2,000 off your system cost!
Important Note:
There are no Minnesota state rebates for home or business solar space heating systems at this time.
4. Utility Rebate Programs
Great River Energy's (GRE) member cooperative utilities* offer a rebate of $2,000 per kilowatt for grid-connected solar-electric (PV) systems, with a maximum award of $4,000 per customer.
This program, available to member utilities' residential, commercial and industrial customers, began in September 2005 and is subject to availability of funding.
GRE's rebate for PV systems may be combined with the state's solar-electric rebate, which also offers $2,000 per kilowatt for installed PV systems.
The following conditions apply to GRE's Solar-Electric (PV) Rebate Program:
1. Projects must meet the installation completion timeline established by the Minnesota Department of Commerce's Solar-Electric (PV) Rebate Program.
2. Applicants must apply for and receive rebate confirmation through the Minnesota Department of Commerce's Solar-Electric (PV) Rebate Program.
3. GRE's solar-electric rebate funds will be allocated on a first-come, first-served basis. Contact your member cooperative to determine availability of funds.
4. The minimum system capacity is 1 kilowatt; the maximum capacity is 2 kilowatts.
5. Representatives from GRE must be allowed on-site to verify the characteristics of the site, inspect the installation and collect data on the electricity produced by the system. Participants must also agree to provide GRE with digital images of the installation for use on its web site and in printed materials.
6. Installation details, requirements and eligible equipment are consistent with the Minnesota Department of Commerce's Solar-Electric (PV) Rebate Program.
* Great River Energy's 28 member cooperative utilities are:
Agralite Electric Cooperative
Arrowhead Electric Cooperative
Brown County Rural Electric Association
Connexus Energy
Cooperative Light & Power Association
Crow Wing Power
Dakota Electric Association
East Central Energy
Federated Rural Electric Association
Goodhue County Cooperative Electric Association
Itasca-Mantrap Cooperative Electric Association
Kandiyohi Power Cooperative
Lake Country Power
Lake Region Electric Cooperative
McLeod Cooperative Power Association
Meeker Cooperative
Mille Lacs Energy Cooperative
Minnesota Valley Electric Cooperative
Nobles Cooperative Electric
North Itasca Electric Cooperative
Redwood Electric Cooperative
Runestone Electric Association
South Central Electric Association
Stearns Electric Association
Steele-Waseca Cooperative Electric
Todd-Wadena Electric Cooperative
Wright Hennepin Cooperative Electric Association
Minnesota Power offers a rebate of $2,000 per kilowatt for grid-connected solar-electric (PV) systems, with a maximum award of $4,000 per customer.
This program, available to the utility's residential, commercial and industrial customers, began in February 2004 and is subject to availability of funding.
Minnesota Power's rebate for PV systems may be combined with the Minnesota Department of Commerce's Solar-Electric (PV) Rebate Program, which also offers $2,000 per kilowatt (up to $20,000).
The following conditions apply to Minnesota Power's Solar-Electric Rebate Program:
1. Systems must be installed on or before December 31, 2007, and must meet the installation completion timeline established by the Minnesota Department of Commerce's Solar-Electric (PV) Rebate Program.
2. Applicants must apply for and receive rebate confirmation through the Minnesota Department of Commerce's Solar-Electric Rebate Program.
3. Minnesota Power's solar-electric rebate funds will be allocated on a first-come, first-served basis. Contact Minnesota Power to determine availability of funds.
4. The minimum system capacity is 1 kW; the maximum capacity is 2 kW. (Systems may be larger, but the incentive is paid only on the first 2 kW.)
5. Systems must be installed by a trained installer.
6. Minnesota Power reserves the right to limit the number of rebates per installer per year.
7. Representatives from Minnesota Power must be allowed on-site to verify the characteristics of the site, inspect the installation and collect data on the electricity produced by the system.
Participants must also agree to provide Minnesota Power with digital images of the installation for use on its website and in printed materials.
8. Installation details, requirements and eligible equipment are consistent with the Minnesota Department of Commerce's Solar-Electric Rebate Program.
5. Production Incentives
Modeled after the successful Sustainable and Natural Alternative Power (SNAP) program in Chelan County, Washington, Austin Public Utility's Solar Choice Program encourages customers to install photovoltaic solar arrays and connect them to their utilities' electrical distribution system by offering an incentive payment based on the system's production on a $/kWh basis.
The amount paid by each participating utility to its solar energy producers depends on the total amount contributed by that utility's purchasers through their solar green pricing program.
The greater the amount contributed by purchasers, the greater the amount that will be distributed among participating producers, up to a maximum of $1.00 per kWh.
This amount is considered payment for the green attributes of the electricity only, and is additional to retail rates the producer may receive for their electricity under the state's net metering laws.
Producers are compensated for the total electricity produced, not the total exported to the grid. The maximum generation project that may be interconnected with the distribution system is 40 kilowatts.
Solar Choice is not for customers who want to install renewable energy sources for back-up power generation at their home or business.
This program began on October 1, 2005. Actual rates paid to producers will be posted annually.
Rebates, Tax Credits and Incentives
The Big Ones
Our most popular page.
