Eligibility and Guidelines

Eligibility: 

• The battery storage system is new and installation occurs on or after August 1, 2024. The incentive will not be eligible for existing energy storage systems that are already in operation before August 1, 2024. 
• Storage system must be located in Minnesota outside Xcel Territory.  
• Storage system size of 50kWh or less.  
• Owner of the energy storage system must be operating a solar energy generating system at the same site as the energy storage system or have filed an application with a utility to interconnect a solar energy generating system at the same site as the energy storage system at the time of application. Interconnection must be complete in order to receive incentive payment. 
• The storage system must be permanently installed, grid connected, and behind-the-meter. 
• The storage system must carry at least a 10-year manufacturer warranty with customer service and technical support provided by the manufacturer. 
• The storage system must adhere to structural, building, and local codes, laws and regulations. 
• The energy storage system must be connected and/or configured to the electrical components of the premises and/or on-site solar energy generating system in such a manner that does not increase the maximum output of the combined system beyond that which the solar generating system can produce at the point of interconnection, so that the system’s eligibility for a net-metering tariff limited by system size is not impacted. 

Program Guidelines: 

• Funds are available on a first come first served basis until the funding has been fully distributed or June 30, 2027, whichever occurs first. 
• Incentives are limited to one per property address. 
• The payee of the incentive must be the owner of the battery storage system. 
• Submitting the application does not mean that the application has been approved. You will be contacted if and when your application is approved. 
• After application submittal, Program Administrators will review the application for accuracy and completeness. If additional information is needed, the applicant will be notified via email of any deficiencies. The applicant may be given a time frame to correct such deficiencies, as indicated in an email communication. If, after this extended time, the applicant has not provided the requested information, Program Administrators may elect to cancel the application. 
• Incentive funds will be reserved upon receipt of a complete first stage application. Once the second stage application materials are provided and approved by the Department, a payment will be issued. 
• The rebate may be taxable. Everybody’s tax situation is unique, and individuals should consult with their tax professional and/or accountant for any specific tax related information. 
• The Contractor is responsible for ensuring all equipment is installed in accordance with manufacturer specifications and warranty provisions when system is placed in service. The Contractor is responsible for any actions that void equipment warranties due to workmanship.  
• Property of storage installation shall be subject to inspection and verification upon request.  
• The calculation of the incentive is based on the name plate capacity (kWh) of the storage system. The incentive is calculated based on the rated energy capacity (kWh) * [$250/kWh] with a maximum per project incentive of $7,000. 
• While there is a specific carve out for Tribal Nations, individual members of a Tribal Nation are still eligible to participate in the standard incentive program. 
• Program will be evaluated on an annual basis with a report and recommended modifications to program, if warranted, due on June 1 of 2025 and 2026 unless funding is fully distributed before either of those dates.