Minnesota · Tax exemption · Deep-stack program
MN Solar Property Tax Exemption
Removes a tax burden residential solar owners in Minnesota would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Full property tax exemption
- stated benefit
- Residential
- eligible customers
- 15.9 yr
- Minnesota baseline payback
- 4
- other Minnesota programs
Deep-stack program · mid directory
Minnesota runs a 5-program DSIRE stack; this tax exemption is one layer on a 15.9-year modeled baseline, not the whole story.
- Stack5 programs
- In-state #2/4
- Type #21/45
- Baseline15.9 yr
In-state directory place #2 of 4 (mid alphabet). National tax exemption directory #21 of 45. 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 exempts solar energy systems from property tax assessment.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Full property tax exemption
- 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.
Minnesota's solar incentive stack
How this tax exemption 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 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this tax exemption layers inside Minnesota's deep stack
The MN Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Minnesota's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Full property tax exemption. 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 tax exemption 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 Value of Solar Tariff, 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.
Other Minnesota incentives
Frequently asked questions
Where does the MN Solar Property Tax Exemption sit in Minnesota's deep program stack?
How does this tax exemption work beside Minnesota's other programs?
Who is eligible for the MN Solar Property Tax Exemption?
How does this incentive affect solar ROI in Minnesota?
Which other Minnesota programs stack with this one?
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.