Minnesota Solar & Heat Pump Incentives 2026 — Made in MN Solar + CenterPoint Rebates
Minnesota's Made-in-Minnesota solar incentive still operates through Xcel Energy. CenterPoint Energy offers some of the best heat pump rebates in the upper Midwest. Cold-climate ASHPs are well-supported in the incentive ecosystem.
$16,500+
Max potential savings
3
Total incentives
14.9¢
Avg rate / kWh
10.5 yrs
Solar payback
$22,000
25-yr solar savings
1.4%
EV fleet share
Moderate ☀️
Solar potential
Solar Incentives in Minnesota
Xcel Energy Solar Rewards (MN)
Up to $0.08/kWh
Production incentive for Xcel MN solar customers for up to 10 years.
Eligibility: Xcel Energy MN residential customers with solar.
Heat Pump Incentives in Minnesota
CenterPoint Energy Heat Pump Rebate
Up to $2,500
Rebate for cold-climate heat pump systems. The federal 25C credit expired Dec 31, 2025; HEAR rebates may still apply.
Eligibility: CenterPoint Energy MN natural gas customers.
HEAR Rebate (High Efficiency Electric Home Rebate)
Up to $14,000
Point-of-sale rebate up to $8,000 for heat pumps, $1,750 for HPWHs, $4,000 for panel upgrades. Income-based.
Eligibility: Households < 150% of Area Median Income. Program administered by state energy offices.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $22,000
We may earn a referral commission through EnergySage, at no cost to you.
Is Solar Worth It in Minnesota?
Minnesota solar economics are solid for Xcel Energy customers, primarily due to the Solar*Rewards program that pays $0.08/kWh for 10 years. Combined with 14.9¢/kWh electricity and more sun than people expect (4.3 peak hours/day in Minneapolis), payback is 9–11 years for Xcel customers.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
Xcel Energy's Solar*Rewards pays $0.08/kWh for 10 full years of production — roughly $800/year in additional income for an 8 kW system, on top of net metering bill credits. This long-duration incentive dramatically improves MN solar ROI.
Watch Out For
Non-Xcel customers (Great Plains Energy, MN Power, co-ops) have no comparable statewide incentive. The federal 25D ITC expired Dec 31, 2025, removing the previously largest single incentive for MN homeowners.
Solar Cost & Savings in Minnesota (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $23,200 |
| Net install cost | $23,200 |
| Annual energy savings | $1,497 |
| Simple payback period | 10.5 years |
| 25-year net savings | $22,000 |
The federal residential solar tax credit (Section 25D) expired Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Estimates based on 2.9/W avg install cost, 4.3 peak sun hrs/day, and 14.9¢/kWh rate with 2.5%/yr escalation. Individual results vary.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $22,000
We may earn a referral commission through EnergySage, at no cost to you.
How to Go Solar in Minnesota: Step-by-Step
- 1
Verify you are an Xcel Energy customer
Only Xcel Energy MN residential customers qualify for Solar*Rewards. If you are served by Great Plains Energy, MN Power, or a rural co-op, contact your utility directly about their solar programs.
- 2
Apply for Solar*Rewards before installation
Visit xcelenergy.com and submit your Solar*Rewards application before your installer submits for interconnection. Block incentive rates are allocated in order — apply early. Your installer can assist with the Xcel application paperwork.
- 3
Apply for MN property tax exemption
Minnesota solar systems are exempt from property tax increases from added home value. File Form PR-26 with your county assessor after installation.
- 4
Get quotes and ask about Made-in-MN equipment
Some Solar*Rewards blocks include an incentive premium for solar panels manufactured in Minnesota. Ask installers whether Made-in-MN equipment is available and whether the premium block applies in your area.
Frequently Asked Questions — Solar & Clean Energy in Minnesota
Is solar worth it in Minnesota in 2026?
Yes, especially for Xcel Energy customers. Xcel's Solar*Rewards pays $0.08/kWh for 10 years — worth $7,000–9,000 over the program term for a typical 8 kW system. Combined with 14.9¢/kWh rates, payback is 9–11 years with 25-year savings around $20,000–25,000. Non-Xcel customers face longer payback without a comparable program.
How does Xcel Energy's Solar*Rewards work in Minnesota?
Solar*Rewards MN pays a production-based incentive (~$0.08/kWh) on all solar energy your system generates for 10 years — not just what you export. For an 8 kW system producing 10,000 kWh/year, that's $800/year for 10 years ($8,000 total) in guaranteed payments, separate from your net metering bill credits.
What solar incentives are available in Minnesota?
Minnesota offers: (1) Xcel Energy Solar*Rewards (~$0.08/kWh for 10 yrs, Xcel customers only), (2) Net metering at retail rates, (3) Property tax exemption for solar systems. Note: The federal 25D solar ITC expired Dec 31, 2025.
Does solar work in Minnesota winters?
Yes. Minnesota averages 4.3 peak sun hours/day annually — June/July reach 5.5–6.0 hours while December drops to 1.5 hours. Cold temperatures improve solar panel efficiency by 15–20% during production hours. Snow typically slides off panels quickly given their smooth glass surface.
Recommended Products for Minnesota
Xcel Energy strong programs · state EV rebate $2,500
Calculate Your Minnesota Savings
Use our free calculators with Minnesota's electricity rate (14.9¢/kWh) and gas prices ($1.48/therm) automatically applied.
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Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE, IRS, and state energy offices. Electricity rates: EIA Electric Power Monthly (Feb 2026). Solar production: NREL PVWatts v8. Install costs: EnergySage National Market Report Q4 2025. Rate escalation: 2.5%/yr (20-yr EIA avg). Last updated February 2026. Always verify current amounts with the administering agency.