Minnesota · Net metering · Deep-stack program

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 (~$0.08/kWh)
stated benefit
Residential
eligible customers
15.9 yr
Minnesota baseline payback
4
other Minnesota programs
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Deep-stack program · late directory

Minnesota runs a 5-program DSIRE stack; this net metering is one layer on a 15.9-year modeled baseline, not the whole story.

  • Stack5 programs
  • In-state #3/4
  • Type #20/46
  • Baseline15.9 yr

In-state directory place #3 of 4 (late alphabet). National net metering directory #20 of 46. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

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

Solar's trajectory in Minnesota

The market this incentive operates in: total installed solar capacity in Minnesota reported to the EIA.

0 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 net metering layers inside Minnesota's deep stack

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.

Minnesota bundles a deep incentive stack, so this program rarely stands alone. 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.

Frequently asked questions

Where does the MN Value of Solar Tariff sit in Minnesota's deep program stack?
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 this net metering work beside Minnesota's other programs?
Minnesota allows utilities to compensate solar customers at "value of solar" rate.
Who qualifies, and what does a late in-state directory place mean?
The program is available to residential customers in Minnesota. Check the official program page for current eligibility requirements and deadlines. In-state directory place #3 of 4 (late alphabet).
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.
Which other Minnesota programs stack with this one?
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 · Minnesota solar data · ROI calculator · All incentives.