How to Get Started

The following are some questions to consider when evaluating adding solar plus storage to your home. You can also reference our quick and easy one pager linked here.

Will you be pairing your battery storage system with solar?

Battery storage systems can be charged using the electric grid however, this incentive offered by the State requires that the storage be paired with a solar-energy generating system. If you already have solar, you can work with an installer to add battery energy storage. If you don't have solar, adding battery storage at the same time as solar is a great pairing and enables you to take advantage of the state incentive.

What is your motivation for obtaining energy storage?

A primary motivator for getting storage is resiliency and independence from the grid. Having a storage system can protect you in the face of power outages. Some may find power outages an infrequent and minor inconvenience. Others experience long or frequent outages or have critical electricity needs such as for medical devices. Evaluating how you value resiliency can help you decide whether storage is right for you. Energy storage systems come at a significant cost (common price ranges are in the $15,000-$25,000 range depending on system size), and for most Minnesotans it will be difficult to receive a financial return that will cover the cost of installation.

Some individuals are interested in energy storage as a way to reduce their carbon footprint. Storage can have significant positive environmental impacts. Your storage can be used to decrease energy demand at peak times of the day. Further, as more storage is being integrated into the system, some utilities are beginning to offer opportunities for storage owners to share that stored energy back to the grid at peak demand times. Reducing peak demand can help decrease utilities’ use of peaking plants, which typically are more polluting than other electricity sources.

How will you pay for the energy storage system?

While the incentive will decrease the cost of installing a storage system, the incentive is paid out after installation. You will need to prepare to cover the entire cost of the system. Similarly, any Federal tax credits, should you qualify, would not be received until a later date. Some folks may be able to self finance; others will need to consider loans. Doing research to compare available rates and finance programs is encouraged. Utilities and installers may provide financing options, in addition to loans run through traditional banks or nonprofit organizations. If you qualify for the low-income incentives or pilot program, there may be additional programs for financing. On our resources page you will find a variety of financial resources to explore.

Here’s an example:

• 27.5 kWh battery storage system installation cost $25,000
• State Incentive 27.5 x $250 = $6,875
• Federal Tax credit $25,000 x .3 = $7,500
• Actual costs: Self funded or loan = $10,625

Keep in mind that property owners will need to cover the complete upfront installation costs with incentives and tax credits to follow.

Who will install the storage system?

On our resources page, we link to three directories of solar and storage installers. It can be helpful to get multiple bids to learn what different installers would recommend and compare costs. We highly recommend checking reviews for the installers online and/or talking to references. You can also look up the business on the Better Business Bureau. Further, you can check to see if the installer is certified by The North American Board of Certified Energy Practitioners (NABCEP) which requires that installers adhere to a Code of Ethics and Standards of Conduct. 

What type of battery is best and how large of a battery storage system do you need?

This is where having a trusted relationship with your installer will be important. A qualified and experienced installer may help you evaluate your storage needs and what battery size and manufacturer would be a good fit for your building. There are also a variety of articles and websites linked on our resources page that may be helpful. As installing a battery storage system is a significant investment, it is worth doing your research. 

How will you work with your utility in this process?

With over 170 utilities across Minnesota, each utility operates differently. The State incentive program requires that your solar and storage be connected to your utility grid. You will need to complete an interconnection process with your utility to do so. Installers help customers with the interconnection process. An additional requirement of the state incentive program is for you to reach out to your utility to learn about any potential programs they currently offer, or are planning to offer, related to solar and battery storage. This will empower you to maximize the financial and environmental benefits of your solar and storage. You can find the information we have available for your utility here.