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Energy Storage Incentives

New incentives are coming soon to support Minnesotan’s energy resiliency. Beginning August 1, 2024, incentives will be available for battery storage systems up to 50kWh paired with solar energy systems. Systems of this size are typically found in residential or smaller commercial/community buildings. Battery storage can optimize use of your solar generated energy and protect against power outages. 

Funds remaining: $1,975,875.00

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Outside Xcel Energy territory customers (administered by the Department of Commerce): 

  • $250 per kWh up to a $7,000 maximum  
  • Income Qualified Pilot Program $1,000 per kWh up to a $15,000 maximum ($270,000 in available program funds) 

You can look up your electric utility by your address here. Funds are limited for both incentive programs and will be administered on a first come, first served basis. The Department of Commerce will have approximately $2,160,000 available for incentives and is additionally collaborating with the Tribal Advisory Council on Energy to develop a program specific for Tribal Nations. Xcel Energy will have approximately $3,480,000 available for incentives. Additional program details will be shared in the next two months.  

The storage program run by Xcel Energy was approved in March. Xcel Energy’s program filing can be found in Docket number: E002/M-23-459. You can review the Final Decision on Xcel’s program here

Update regarding the Xcel Storage Incentive program

To provide Xcel with program funds to administer the storage program, a contract is required between Xcel Energy and the State. The State regularly administers this type of grant contract and has diligently worked with Xcel to help them through the contracting process.  Until Xcel executes the contract, the Department is unable to anticipate the program start date.

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