
Sunny Side Solutions wants to help make solar even more affordable by helping you find solar rebates and tax credits in Minnesota. Our expert team is dedicated to helping you harness the power of the sun while maximizing your savings through various rebate programs and tax credits. After you find financial assistance, count on Sunny Side to install and maintain solar energy systems for residential and commercial properties
Federal Solar Tax Credit
The federal solar tax credit, also known as the Investment Tax Credit (ITC), is a significant incentive for solar adoption. Here’s what you need to know:
- 30% tax credit for systems installed between 2022-2032
- 26% for systems installed in 2033
- 22% for systems installed in 2034
- No maximum amount that can be claimed
- Credit expires in 2035 unless Congress renews it
Eligibility for Federal Solar Tax Credit
You may be eligible if:
- Your solar PV system was installed between January 1, 2017, and December 31, 2034
- The system is at your U.S. residence
- You own the solar PV system
- The system is new or being used for the first time
Eligible Solar Expenses
The federal tax credit covers:
- Solar PV panels or PV cells
- Contractor labor costs
- Balance-of-system equipment
- Energy storage devices (3 kWh capacity or greater, for systems installed after December 31, 2022)
- Sales taxes on eligible expenses
Minneapolis incentives and rebates
Solar incentives and rebates can cut the cost of installing solar in Minneapolis by thousands of dollars. The most significant incentive is the 30% federal solar tax credit, available to any taxpayer in the country when they purchase solar panels or battery storage.
Some cities, counties, states and utility companies offer additional solar incentives, saving homeowners even more money. Here are the solar incentives available in Minneapolis:
Federal Tax Credits
The Residential Clean Energy Tax Credit is a Federal is a personal tax credit that offers a dollar-for-dollar reduction in your income tax. For instance, a $1,000 federal tax credit reduces your federal income taxes due by $1,000. This makes it a powerful tool for saving on your solar investment.
State Tax Credits
- Wind and Solar-Electric (PV) Systems Property Tax Exemption
- State Government Rebates: Usually don’t reduce your federal tax credit.
- Sales Tax Exemption: Solar energy systems are exempt from state sales tax. Minnesota Statutes, Section 297A.67, Subdivision 29.
- State Tax Credits: Don’t typically reduce federal tax credits, but may affect your federal taxable income.
NOTE: As of April 2024, Minnesota does not offer a specific state tax credit for solar energy systems. However, residents can still benefit from the federal solar investment tax credit (ITC).
City Based Tax Credits
- Solar energy systems can be exempt from property tax assessments.
Net Metering
Net metering is a billing mechanism that allows solar panel owners to receive credit for excess electricity they generate and send back to the grid. In Minnesota, net metering is required by law for all investor-owned utilities, municipal utilities, and electric cooperatives.
Other Types of Incentives
- Utility Rebates: Generally excluded from income taxes and subtracted from your system costs before calculating the tax credit. For example, Xcel Energy offers production-based incentives for new solar installations.
- Renewable Energy Certificates: Payments are typically considered taxable income but don’t reduce the federal solar tax credit.
Our team at SolarSave Solutions stays up-to-date with these complex regulations to ensure you receive maximum benefits for your solar investment. We’ll guide you through the process, helping you understand and apply for all eligible incentives.
Contact Us
Ready to start your solar journey and take advantage of these incredible savings? Contact us today for a free consultation and personalized rebate assessment.