Renewable Portfolio Standards
Minnesota’s Renewable Portfolio Standards dictate that a minimum of 25% of all energy has to come from a renewable source. Some companies have set stricter requirements for themselves, which is all good news for consumers! To meet these new goals, companies are offering competitive incentives for homeowners to take advantage of.
RPS Solar Carve-Out
With a solar carve-out of 1.5% by 2020, which refers to the percentage of the state’s renewable energy that must come from solar, consumers can expect to see a number of competitive offers and rebates.
High State Electric Rates
With 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 18 out of all the states when it comes to expensive electric bills.
Net Metering Laws
Minnesota has strong net metering laws, which is a huge perk for those interested in a green energy system. What is net metering? It’s a system in which renewable sources of energy, like solar panels, are connected to the public utility. When your system produces more power than what you use, that excess power is sold to the grid, which you see as a credit on your power bill.
The requirements for connecting solar and other forms of electrical generation system to Minnesota’s grid are known as interconnection standards. The higher those standards, the easier it is for homeowners to connect their solar panels to the grid. Strong interconnection standards also make way for ease of net metering, creating a win-win for consumers.
You’re in luck when it comes to Minnesota energy rebates, as they are available through seven different utilities. Rebates are, of course, dependent on the region you’re in. There will be, like any rebate offered, paperwork that needs to be done. Most rebates work by giving you one lump sum payment, or by having the installer take the amount off the installed price.
Solar Power Performance Payments
Minnesota has you covered when it comes to Solar Power Performance Payments. These incentives are based on the metered power your system generates and credits are known as Solar Renewable Energy Credits. The values of these fluctuates, what with supply and demand.
Sales Tax Exemptions for Energy
A sales tax exemption means that homeowners would not have to pay state sales tax on their solar panel system. Need we say more?
Federal Tax Credit
As if all the above wasn’t reason enough to go solar, Minnesota residents 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!