New Solar Rebates Available to Minnesota Businesses

Tackled energy efficiency and now dream about putting solar panels on your business’s roof? Now may be a good opportunity to finally do it.

The Minnesota Office of Energy Security yesterday announced a new program to provide rebates to small businesses that install solar electric systems. But you may want to act quickly: The rebates are available on a first-come, first-serve basis until available funds run out.

The program will provide $3 million in solar rebates, thanks to federal economic stimulus funding provided to Minnesota through the American Recovery and Reinvestment Act.

The rules are eligibility requirements are plentiful so read them carefully. To qualify, a business must:

- have 20 or fewer full-time equivalent employees
- be based in Minnesota
- use a licensed solar contractor that meets the program participation criteria.
- install a solar electric system with rated capacity between 0.5 and 10 kilowatts (kW)
- get an assessment in advance of installation by a solar site assessor to determine whether the business would benefit from solar energy (cannot be the contractor that installs the system)

Rebate applications received by April 30 (with projects completed by September 30) will receive a rebate of $1.75 per watt, up to a $17,500 maximum. Applications after April 30 will receive a rebate of $1.50 per watt, up to $15,000. (Solar electric systems generally cost $8 to $10 per watt to buy and install, so this rebate alone would cover roughly 17% of the cost.)

Read the full rules and steps involved with obtaining a state solar rebate for a Minnesota business.

The state rebates can be coupled with other financial incentives, such as utility rebates and sales tax exemption, available to businesses for solar energy systems – reducing the installation costs even more. Xcel Energy, for instance, unveiled its Solar*Rewards program this year that offers a $2.25-per-watt rebate to its customers for newly installed solar electric systems. Minnesota also offers sales and property-tax exemption to businesses that purchase solar electric systems. The federal government provides tax credits of up to 30% the cost of installation to businesses that install solar power systems through 2016.

You can find out more about solar energy incentives in Minnesota and federal tax credits here.

Have questions or need help finding out whether you qualify for the new solar rebate program? Contact Energy Smart at (651)292-4652.