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On-Site Energy Storage Systems Installation Incentives

In the 2023 session, the Legislature established two energy storage grant/incentive programs. These programs will support the adoption of battery storage up to 50kWh paired with solar energy systems. The Minnesota Department of Commerce is building and will administer the program for applicants outside the Xcel Energy electric service area, known as the On-Site Energy Storage Grant program. Xcel Energy has drafted the program for applicants within its electric service area, known as the Solar Powered Storage Incentive Program. Both programs anticipate launching in 2024.

Upcoming stakeholder engagement

As the Commerce Department is developing the program for outside Xcel Energy territory, we are seeking stakeholder feedback. Online stakeholder meetings will include a brief presentation on the statute language, other storage programs and ideas for Minnesota. There will be questions for attendees and discussion regarding how to make the program effective. Written comments will also be accepted. Stakeholder meetings are targeting specific stakeholder groups, yet you are welcome to attend any meeting. Click on a date below to register to attend.

Submit written feedback on this form by the end of the day on March 8, 2024. At the completion of stakeholder engagement, a report of stakeholder feedback will be created to inform the development of the program.

Program specifics

The owner of an energy storage system may qualify for a grant if:

  • The energy storage system has a capacity of 50 kWh or less;
  • The energy storage system meets the definition established in Minn. Stat. § 216B.2422, subdivision 1(f); and
  • The energy storage system operates alongside a solar energy generating system (as defined in Minn. Stat.§ 216E.01, subdivision 9a) at the same site, or if the owner filed an application with a utility to interconnect a solar energy generating system at the site.

Funds are limited for both grant award programs.

The state of Minnesota will have approximately $2,700,000 available for grants and Xcel Energy will have approximately $3,800,000 available for grants. 

Xcel Energy’s program filing can be found in Docket number: E002/M-23-459.

Check back here for updates and subscribe to the Consumer Announcements e-newsletter to receive email updates for individuals including consumers, homeowners, renters and the general public interested in this program. Additional program information can be found in Minnesota Laws Chapter 60, Article 12, Section 39 (for the program in Xcel Energy territory) and Article 10, Section 2 (for the program outside of Xcel Energy territory).

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