Minnesota · Net metering

MN Value of Solar Tariff

Sets the billing terms for excess solar generation sent back to the grid by residential customers in Minnesota -- see the credit rate and how it shapes payback below.

Value-based rate (~$…
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 MN Value of Solar Tariff stacks on top of that, on top of any federal credit.

Value-based ra…
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

Minnesota allows utilities to compensate solar customers at "value of solar" rate.

Program at a glance

Program type
Net metering
Eligible customers
Residential
Stated benefit
Value-based rate (~$0.08/kWh)
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.

Irradiance
Minnesota: 4.4 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Minnesota: 14.2¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Minnesota: 15.9 yr
U.S. avg: 14.2 yr

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.

-500 MW0 MW500 MW1.0 GW1.5 GW2.0 GW 201320142015201620172018201920202021202220232024 1.7 GW
Minnesota now has about 1.7 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Minnesota's solar incentive stack

How this net metering sits among Minnesota's 4 tracked programs, by type

programs

What this shows Minnesota tracks 4 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.

Source DSIRE incentives registry As of 2024

How this incentive fits Minnesota's solar picture

The MN Value of Solar Tariff governs how Minnesota credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Value-based rate (~$0.08/kWh). 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 net metering 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, Made in Minnesota Solar Incentive, 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
  • See how net-metering credits are valued state by state. Net-metering 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.

Frequently asked questions

What is the MN Value of Solar Tariff?
The MN Value of Solar Tariff is a net metering available to residential solar customers in Minnesota. The stated benefit is Value-based rate (~$0.08/kWh).
How does the MN Value of Solar Tariff work?
Minnesota allows utilities to compensate solar customers at "value of solar" rate.
Who is eligible for the MN Value of Solar Tariff?
The program is available to residential customers in Minnesota. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Minnesota?
Minnesota has an estimated 15.9-year payback for a 6 kW system before incentives, with about $1,095/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Minnesota?
Yes - Minnesota has 5 solar incentive programs tracked in DSIRE, including MN Solar Property Tax Exemption, Made in Minnesota Solar Incentive, Xcel Energy Solar Incentive Program (MN). State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

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.