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.
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 net metering 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; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.
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.
Other Minnesota incentives
Frequently asked questions
What is the MN Value of Solar Tariff?
How does the MN Value of Solar Tariff work?
Who is eligible for the MN Value of Solar Tariff?
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.