Made in Minnesota Solar Incentive Program

Step 1: Complete an energy efficiency assessment

The Minnesota Department of Commerce recommends that homeowners who are interested in solar first complete an advanced energy assessment and make sure to take advantage of all the cost-effective ways to save energy and money in your home or business—before going solar.  The Minnesota Building Performance Association and your gas and electric utility offer programs and in some cases financial incentives to complete an energy assessment.

Step 2: Get educated

Solar power can generate electricity, heat water, or help heat your home. Making electricity is the most common application of solar energy in Minnesota today, and solar heating applications are increasing too. Learn about solar through sources such as the Clean Energy Resource Teams (CERTs) and the U.S. Department of Energy. Take a class on solar basics. Check the Minnesota State Colleges & Universities system or community education opportunities in your area. Talk to neighbors and friends who have installed solar.

Step 3: Find out if your location is suitable for solar

A Minnesota Solar Suitability App  developed by the University of Minnesota with support from the Department of Commerce can help identify the solar potential for homes and businesses in Minnesota.

If your home is not suitable for a solar energy system, consider subscribing to a community solar garden. CERTs offer information on Community Solar Gardens, an emerging option among several Minnesota electric utilities. Another option for some electricity customers is a green pricing program such as Xcel Energy’s Wind Source Program.

Step 4: Learn about incentives and rebates

The Database of State Incentives for Renewables & Efficiency (DSIRE) provides the most complete list of financial incentives for solar systems. It includes information on the 30 percent federal Residential Renewable Energy Tax Credit (good through December 31, 2016); incentive programs, rebates, and loans from utilities and state agencies; and state sales and property tax exemptions. Your solar contractor can also help identify financing options (.pdf).  

Step 5: Find a solar installer or solar site assessor

If your home or business has a good location for solar, your next step is to find an installer and complete a solar site assessment. A third-party source, such as the Minnesota Renewable Energy Society, can provide an independent site assessment for approximately $250.  Many solar installers provide this assessment at no cost. The Minnesota Clean Energy Resource Teams (CERTS) have developed the Clean Energy Project Builder to help find solar installers in your area.  In addition, the North American Board of Certified Energy Practitioners (NABCEP) offers the highest level of certification of solar PV and solar heating installation energy professionals throughout North America. Commerce recommends that you request bids from three different solar installers. Each bid should contain the number and type of solar modules, the total size of the system, its expected energy output over time, and the total cost.

How to Apply

Step 1: Check to see if you are eligible for the incentive and your home or business has good solar access.

Only customers of Xcel Energy, Ottertail Power and Minnesota Power are eligible to receive an incentive.

You can use the Commerce Solar Suitability app to see if your home or business has good solar access.  If you have good solar access, you should contact three solar professionals to get a bid for installation of a solar PV system.  A list of solar professional is available on the Clean Energy Research Teams (CERTs) project builder website.  The solar professional will then design a system and provide costs, schedule and other features of the system.  As the person who will ‘hosting” the solar PV system on your home or business you will be known as the Host Customer.  

“Applicants” (those applying on behalf of Host Customers for incentives) submit applications, review their application statuses, and submit notice of completions.  Commerce reviews applications, notice of completions and administers the program. 

Commerce recommends that solar professionals complete the application on behalf of Host Customers.  However, Host Customers will need to sign the application summary form, customer disclosure form, installation agreement and notice of completion.

Step 2: Submit an application

Once you have agreed to the system design and costs, your solar professional will use this information to create a Made in Minnesota Solar Incentive Program (MiM) application.  MiM applications are accepted annually from Jan. 1 to Feb. 28. You will be required to sign the application form before it can be submitted. The MiM application guidelines provide a complete step-by-step overview of the application procedures.

New for 2017

Please review and discuss the customer disclosure form with your solar professional. It is required to be signed and uploaded as part of the application.

After February 28th application period has closed, Commerce will conduct a random selection process in which a ranking will be applied to each complete application.  Funding is then allocated based on the rankings until all funds are expended.  If your project has been awarded funds you will receive a funding reservation letter.  If your project has not been awarded funds you will receive a wait list letter. When projects that have been awarded funds cancel, projects next on the wait list are awarded the funds through December 31st.  Wait list projects do not carry over to the next year.

Step 3: Install your system

If you receive a MiM reservation funding letter you are now ready to install your system and interconnect to the utility's power grid. Your solar professional will manage the installation, permitting and utility interconnection process on your behalf. 

Every project application must designate a payee for the MiM incentive.  This is generally the same as the Host Customer but the payment can be assigned to another person or organization.  Every payee (company, organization, or individual), receiving a Made in Minnesota (MiM) production incentive or rebate check is considered a vendor of the state of Minnesota. In order to receive your MiM payments, you will need to register online for a vendor ID.  To register for a vendor ID go to the Minnesota supplier portal and click on the “Vendor Registration Link”. When you register, you will be assigned a user ID and password. Follow the step-by-step instructions and remember there may be several steps you will be able to skip.  Your vendor ID number will be emailed to you. 

Through the supplier portal you will be able to track your MiM payments and change where your payments are sent or deposited.  Keep your new State of Minnesota vendor number, user ID, and password in a secure place where you can find it easily. You will need this information for accessing the Supplier portal.  

Step 4: Claim your incentive

When your project is installed and operational, your solar professional will submit the MiM notice of completion incentive claim form and additional documents as outlined in the application guidelines.

Step 5: Annually attest to you energy production

Each year in April you will be sent an email letter that provides the amount of energy that your system has produced over the preceding calendar year and the amount of your incentive payment.  Commerce receives this information from your utility. You will need to respond to this email attesting that the energy generation amount is accurate.  You must respond by June 1st in order to receive payment by July 1st.  If the energy amount is inaccurate you can ask for a review.  This will delay payment until a resolution to the discrepancy has been found.  Payments are based on actual energy production. 

Step 6:  Enjoy your energy from the sun 

More information is available on the Commerce Consumer Made in Minnesota Incentive Program website.  

Solar PV Incentive Amounts

The Minnesota Department of Commerce 2017 incentive amounts for Made in Minnesota solar modules

The solar incentive program is available to customers of investor-owned electric utilities who install solar electric systems (also known as solar photovoltaic [PV]) using solar modules certified as manufactured in Minnesota. Modules from five Minnesota companies—Heliene, Itek Energy, Saga, Silicon Energy, and Ten K Solar—have been certified for the program to date. Applications will be accepted annually from Jan. 1-Feb. 28 each year through 2023 and will be selected randomly.

There are three incentive levels depending on the ownership and system size: For-Profit Commercial, Tax Exempt/Nonprofit/Public, and Residential.   Commercial systems must have a capacity less than 40 kW and residential systems may have a capacity of up to 10 kW.  Modules from four Minnesota companies—tenKsolar, Silicon Energy, itek Energy, and Heliene—have been certified for the program to date.

The six criteria listed in the Made in Minnesota Solar Energy Production Incentive law (Minnesota Statute § 216C.414, subd. 2 (2013)) are used to determine the incentive amounts.

How to Calculate a Solar PV Production Based Incentive (PBI)

A resident who installs a 5 kW array of itek Energy Made in Minnesota certified modules that generate 6,446 kWh of electricity annually may be paid $1,740 (6,446 kWh x.27/kWh) each year for 10 years, or a total of $17,404. The amount of electricity produced and therefore the incentive payment will vary each year.

Payments from MiM are production-based incentives (PBI), established by a system’s energy production, and paid annually each year for 10 years. Each April, for the following 10 years after installation, you will receive a letter from the Department of Commerce asking you to confirm your solar installation’s energy production.  Payments based on this energy production will be paid no later than July 1 each year.  During the 10 years you are receiving the MiM incentive the Renewable Energy Credits (REC) associated with your system will belong to the utility.  After 10 years the RECs will belong to the system owner. 

Solar Thermal Rebates

Solar thermal energy is a technology for harnessing solar energy for thermal energy (heat).

A solar thermal system is “Made in Minnesota” if components of the system are manufactured in Minnesota and the solar thermal system is certified by the solar rating and certification corporation.  The solar thermal systems may be installed in residential and commercial facilities for, among other purposes, water heating, space heating, and pool heating purposes. 

Rebates are also available to commercial, multi-family and residential property owners who install Made in Minnesota certified solar thermal systems.  The rebate is equal to 25% of the system installed cost up to a maximum of $2,500 for residential, $5,000 for multi-family, and $25,000 for commercial systems.  

To receive a Made in Minnesota rebate, applicants must use a factory authorized solar thermal installer.  Contact one of the Made in Minnesota certified solar thermal system manufacturers for a list of factory authorized installers. 

To apply for a solar thermal rebate, follow the same steps you would to apply for solar PV.  MiM applications are accepted annually from Jan. 1 to Feb. 28. Your qualified solar professional will complete the MiM incentive application for you.  You will be required to sign the notice of application form before it can be submitted. The MiM application guidelines provide a complete step-by-step overview of the application procedures MiM application guidelines provide a complete step-by-step overview of the application procedures

How to Calculate a Solar Thermal Rebate

In addition to residential customers, rebates are available to commercial, multi-family and residential property owners who install Made in Minnesota certified solar thermal systems.  The rebate is equal to 25% of the system installed cost up to a maximum of $2,500 for residential, $5,000 for multi-family, and $25,000 for commercial systems.  

For example: A single-family homeowner who installs a certified Made in Minnesota solar thermal system which has a total installation cost of $6,000 would be eligible  to receive a one-time rebate of 25% ($1,500) of the total installed cost paid in a single installment within 60 days of project notice of completion approval.   

Solar thermal rebate amounts

*RREAL stopped producing the Solar Power Furnace in 2015 but they do have a limited inventory still available. Contact RREAL for more information.

How to Calculate a Solar Thermal Rebate

A single-family homeowner who installs a certified Made in Minnesota solar thermal system which has a total installation cost of $6,000 would be eligible, upon application, submittal, and approval, to receive a one-time rebate of 25% ($1,500) of the total installed cost paid in a single installment within 60 days of project notice of completion approval. 

Additional Resources

Solar Electricity for the Home, Farm, and Business (.pdf)

A Homeowner’s Guide To Solar Financing:  Leases, PPAs and Loans (.pdf) 

Clean Energy States Alliance (CESA)

Consumer Guide to Solar Energy (.pdf) 

National Renewable Energy Laboratory (NREL)

Hiring a Renewable Energy Contractor (.pdf)

Questions to ask a renewable energy contractor; includes links to maps of solar and wind energy contractors in Minnesota.

Clean Energy Project Builder--Find solar companies serving Minnesota  

The Clean Energy Project Builder is provided by Clean Energy Resource Teams (CERTS) to find companies in Minnesota that can help you plan, implement, and manage clean energy projects.

NABCEP Certified Solar Installers ‎

The North American Board of Certified Energy Practitioners (NABCEP) offers certification of solar PV and solar heating installation energy professionals throughout North America. 

DSIREUSA.ORG

DSIRE is the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University and is funded by the U.S. Department of Energy.

Organizations that can help consumers learn more about solar energy

CERTs--Learn More About Solar

Solar energy can be used to generate electricity, provide hot water, and heat and cool buildings.

Minnesota Renewable Energy Society

Stay up to date on the latest information on the Made in Minnesota Solar Incentive Program and other programs and events at the Department of Commerce.  Sign up to receive email newsletters and program alerts.