Battery Energy Storage Incentives

Incentives are currently available for battery storage systems up to 50kWh paired with solar energy systems. There are two options, one for those not in Xcel Energy service area, and another for those within Xcel Energy service areas. Not sure if you are inside or outside of Xcel Energy service area? Look up your electric utility by your address here. 

Incentive program for those outside of Xcel Energy service area: 

• $250 per kWh up to a $7,000 maximum 
• This program is for electric customers who have electric services outside of Xcel territory
• Reach out to your electric utility and ask if they have battery storage program with additional rebates or rate discounts
• Funds remaining: $1,506,840 as of July 6, 2026

If you have questions, please email storageincentive.comm@state.mn.us

Funds are limited for both incentive programs and will be administered on a first come, first served basis. The MN Dept of Commerce will have approximately $2,160,000 available for incentives.

Incentive program for those within Xcel Energy service area:

Customers inside Xcel Energy’s service territory may access incentives for solar plus storage systems. Xcel Energy has approximately $3.48 million available for incentives. Eligible homes and businesses should not exceed a capacity of 50 kWh. For your participation, you will earn an upfront incentive that includes:

• $175 per kWh of energy capacity.
• Income qualified customers: $370 per kWh of energy capacity.
• The upfront incentive payment is capped at $5,000.

For help completing the Storage Equipment Incentive application, email SolarProgramMN@xcelenergy.com. Find additional program information by viewing this presentation.  Interconnection Portal for renewable developer resources, Xcel Energy, login site: Login (site.com)