Clean Energy Incentives in Minnesota

DEED grants for energy efficiency, renewable energy, and clean transportation. Supports EV charging infrastructure, fleet transitions, and building energy upgrades.

Xcel Energy Minnesota's commercial EV charging rebate program. Workplace, fleet, and public charging eligible. TOU rates available.

Minnesota C-PACE allows commercial property owners to finance clean energy improvements through a property tax assessment. Long-term repayment (up to 20+ years). Multiple PACE administrators operate in the state.

Minnesota Department of Commerce is establishing a state EV rebate program to supplement federal credits. Program details and launch date TBD — subscribe to MN Dept of Commerce newsletter for updates.

State-funded battery storage incentive for solar-paired systems. Outside Xcel territory: $250/kWh up to $7,000 max. Inside Xcel territory: $175/kWh up to $5,000 max. Funds limited, distributed first-come first-served.

Affordable fixed-rate loans for home improvements including solar installation. $2,000 to $75,000 with terms from 1 to 20 years. No downpayment required. Administered through MHFA.

Minnesota's NEVI deployment for DCFC stations along alternative fuel corridors. Part of the REV Midwest MOU with IL, IN, MI, WI for coordinated cross-state EV infrastructure.

Minnesota exempts all solar system components from the state's 6.875% sales tax. On a $35,000 system, saves approximately $2,400 upfront. Automatic — no application needed.

The added value from a solar energy system is fully exempt from property tax. Estimated $293/year savings based on average system and 1.02% tax rate. Over system lifespan, total savings ~$5,875.

Flat $500 rebate for residential solar installations commissioned in 2026. Simple application process with payment in 8-12 weeks.

Minnesota has one of the most extensive utility EV charger rebate networks in the US. Notable programs: Heartland Energy ($500 EV purchase + charger), Lyon-Lincoln ($500 new EV, $100 PHEV), Sioux Valley SW ($300 EV, $150 PHEV), ALP Utilities ($500 WiFi L2), Stearns Co-op ($500 L2), Wright-Hennepin ($500 bill credit). Most co-ops also offer TOU/load management programs at $0.04–0.05/kWh off-peak.

10-year performance-based incentive paying $0.03/kWh based on actual production. Income-qualified customers may receive a dramatically higher upfront incentive of $3.00/watt (up to 6kW). One of the best utility solar programs in the Midwest.