Minnesota · Performance incentive
Made in Minnesota Solar Incentive
Pays residential solar owners in Minnesota based on actual output -- see the rate, eligibility, and how it changes payback below.
- $0.07-$0.17/kWh for …
- stated benefit
- Residential
- eligible customers
- 15.9 yr
- Minnesota baseline payback
- 4
- other Minnesota programs
What it means
In Minnesota, a 6 kW system already pays back in about 15.9 years on ~$1,095/year of modeled savings, and the Made in Minnesota Solar Incentive stacks on top of that, on top of any federal credit.
- $0.07-$0.17/kW…
- stated benefit
- 15.9 yr
- baseline payback (pre-incentive)
- 5
- Minnesota programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Production incentive for solar systems using Minnesota-manufactured components.
Program at a glance
- Program type
- Performance incentive
- Eligible customers
- Residential
- Stated benefit
- $0.07-$0.17/kWh for 10 years
- State electricity rate
- 14.2¢/kWh
- Minnesota solar score
- 26/100
How Minnesota compares to the U.S. average
Why this incentive matters more (or less) here - Minnesota's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Minnesota
The market this incentive operates in: total installed solar capacity in Minnesota reported to the EIA.
Minnesota's solar incentive stack
How this performance incentive sits among Minnesota's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Performance
Performance
1 programs
- Rebate
Rebate
1 programs
What this shows Minnesota tracks 4 incentive types, 1 of them performance-based like this one -- paid on actual output rather than a one-time credit, stacking with the state's other program types.
How this incentive fits Minnesota's solar picture
The Made in Minnesota Solar Incentive pays based on actual measured generation rather than a one-time credit, one of Minnesota's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of $0.07-$0.17/kWh for 10 years. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Minnesota averages 4.4 kWh/m²/day of usable sunlight and residential rates of 14.2¢/kWh, producing an estimated 7,709 kWh/year and $1,095 of annual utility offset on a typical 6 kW system costing $17,400. That baseline already implies a 15.9-year simple payback and a 25-year modeled net of roughly $9,975 before this incentive - every dollar this performance incentive delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Minnesota has 5 solar incentive programs indexed in DSIRE, including adjacent options like MN Solar Property Tax Exemption, MN Value of Solar Tariff, Xcel Energy Solar Incentive Program (MN). The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Minnesota's full solar profile, score, irradiance, rates, payback, and every program you can claim. Minnesota solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Minnesota incentives
Frequently asked questions
What is the Made in Minnesota Solar Incentive?
How does the Made in Minnesota Solar Incentive work?
Who is eligible for the Made in Minnesota Solar Incentive?
How does this incentive affect solar ROI in Minnesota?
Are there other solar incentives in Minnesota?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.