innesota is an area of great expansion when it comes to solar energy. While the state is already one of the top wind energy producers in the country, progressive laws are making solar energy production more attainable. Along with many tax exemption policies, Minnesota's Renewable Portfolio Standard (RPS) ensures the continued growth of renewable energy resources.
Grid Connected Solar Power Systems In Minnesota (2012)
- Systems: 1.3 Megawatt
- Non-Residential Solar Power Systems: 3.2 Megawatt
- Utility: 27.9 Megawatt
- Total: 6.5 Megawatt
- Cumulative: 11.3 Megawatt
Minnesota still has plenty of room to expand when it comes to solar energy. While the state ranks higher than neighboring states such as North Dakota and Iowa, it is still below average when it comes to overall solar power production. States with smaller populations than Minnesota such as Colorado have a cumulative installed capacity of nearly 300, far more than Minnesota's output.
Cost of Electricity in Minnesota
- Electricity Price: $ 0.11 per kwh
- Average Electricity Bill: $140.00
- Average Bill after Solar: $43.00
While electricity is relatively inexpensive in Minnesota, solar power is the better long-term option when it comes to overall cost and sustainability. An average solar system in Minnesota will generally take 14 years to have fully paid for itself. Additionally, using solar energy will cut two-thirds out of your energy costs.
The average solar radiation in Minnesota is between 2 and 4 Kilowatt per day over an area of 1 square meter (10.76 square foot). This is the same average shared by neighboring states Iowa and Illinois and reflects an ample amount of sunlight.
State Solar Incentives and Rebate Programs
- State Solar Tax Credit: None
- State Solar Rebate: None
- Property Tax Exemption: 100%
- Sales Tax Exemption: 100%
While Minnesota does not offer a solar tax credit or solar rebate, the state offers complete property and sales tax exemption. Additionally, Minnesota allows for net metering, meaning any excess energy generated can be sold back at the price of consumption. For more information on Minnesota's net metering laws, check out the Database of State Solar Incentives for Renewables & Efficiency.
In addition, the Federal Tax Credit also applies.
Solar Installers in Minnesota
While there are no specific requirements when it comes to licensing for solar energy contractors in Minnesota, solar energy installation is considered electrical work. Therefore, a solar installer must be certified as a licensed electrical contractor. Click here to make sure your contractor is licensed with the North American Board of Certified Energy Practitioners (NABCEP) or call (800) 654-0021.
Summary: Great Future for Solar Power Systems
The future of solar energy in Minnesota is looking bright. Positive tax incentives and mandated laws ensure the continued growth of solar energy in the state. Now is a great time to take advantage of Minnesota's solar incentives.
Solar Energy Fact Sheet: Minnesota, © SolarContact.com