For most property owners, investing in a solar energy system in the North Star State is worthwhile. The state of Minnesota collects excellent coverage of the sun, with 68.95% in a year, which is sufficient to produce electricity and save costs on their bills.
Furthermore, considering the already high electric rates only getting higher, now is the time for all those who are interested in making the switch to solar energy to do so. As it currently stands, Minnesota ranks number 26th in residential electricity rates and 31st in commercial electricity rates out of all the states regarding expensive electric bills.
To understand how lawmakers support the Minnesota state in its innovation on sustainable energy, check out the solar incentives and rebates a property owner can benefit from.
Minnesota Renewable Portfolio Standards dictate that a minimum of 25% of all energy comes from a renewable source. The RPS also established a state-wide aigoalf ten percent of retail electric sales from Solar by 2030. Some companies have set stricter requirements which are good news for property owners. To meet these goals, utility companies are offering competitive solar incentives for property owners to take advantage of.
Minnesota has substantial net metering laws, a huge perk for those interested in a green energy system. Net metering is a mechanism that enables renewable energy systems, such as solar panels, to be connected to a public utility. If your system generates more electricity than you consume, the excess power is supplied to the utility for distribution to other customers. In return, it will benefit you as utility companies will reimburse you by crediting it to your electric bill.
Minnesota Interconnection Standards is a win-win for property owners. The interconnection standards are requirements for connecting solar and other electrical generation systems to Minnesota grid, a method of "plugging into" the grid. The higher those standards, the more accessible homeowners can connect their solar panels to the grid. The many interconnection standards also make way for ease of net metering.
You're in luck with Minnesota energy rebates, available through seven utilities. Solar incentives and rebates are dependent on the region you're in. Like any rebate, paperwork needs to be done. You can pay the rebate in a lump sum, or your installer can take it off his bill. One advantage of the former method is that the installer handles the paperwork.
Minnesota has you covered when it comes to Solar Power Performance Payments. These solar incentives are based on your system's metered power, and credits are known as Solar Renewable Energy Credits. The values of these fluctuate, what with supply and demand.
In Minnesota, property owners do not need to pay sales tax to purchase or install a solar energy system. This means investing in solar panels will grant a property owner a 6.875% savings, a typical sales tax rate in Minnesota. Now, that is one of the Minnesota solar incentives worth taking on!
Fundamentally, everyone who sets up solar panels or other solar-powered devices on their estate will be excluded from the payment of property taxes corresponding to the expansion of property value as an outcome of including the solar system. When the value of your home rises in the wake of installing a residential solar energy system, your property tax stays the same. This is because Minnesota exempts the "solar bump" from property taxes. The value of your home will not be reassessed.
More than excellent Minnesota solar incentives and rebates, as if all the above wasn't reason enough to go solar, Minnesota property owners may also qualify for the solar Investment Tax Credit, which allows solar panel owners to deduct a whopping 26% of the system cost from their federal taxes. You only qualify for this tax credit if you have purchased, not leased, your system, so make sure you factor that into your solar panel decision-making process!
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