Commercial Solar in Minnesota in 2026

Minnesota Xcel Energy commercial rates have increased as the state transitions its generation mix. The Xcel Solar*Rewards Commercial program pays 20-year production-based incentive contracts for commercial solar systems in their service territory — one of the more valuable Midwest state incentive programs. Minnesota Power serves the Duluth metro and Iron Range, while Otter Tail Power covers western Minnesota. Our partners are active in Minneapolis-St. Paul, Rochester, Duluth, and the I-94 manufacturing corridor. See Minnesota Commerce solar programs for current state guidance.

Minnesota Solar Incentives 2026

  • Federal ITC (30-50%): Base 30% plus energy community adder in qualifying MN coal-transition counties
  • Xcel Solar*Rewards (20-Year Contracts): Production-based incentive payments per kWh over 20 years
  • Sales Tax Exemption: Minnesota exempts solar equipment from state sales tax
  • Property Tax Exemption (MN Stat. 272.0213): Solar installations exempt from property tax assessment
  • MACRS 5-Year Depreciation: Federal accelerated depreciation on ITC-adjusted basis
Minnesota Xcel Energy commercial net metering Solar Rewards production incentive program structure

How to Get Started With Minnesota Commercial Solar

The fastest path to locking in incentives is requesting a proposal now. Our team verifies ITC eligibility, checks energy community adder status, identifies applicable state programs, and connects you with a vetted Minnesota EPC. The December 31, 2027 ITC in-service deadline makes timeline certainty critical — starting the proposal and interconnection process now is essential. For more on financing, see our ESP zero cap-ex program guide and commercial solar financing comparison. For tax strategy, see our MACRS depreciation guide and 2026 tax incentives overview.

Nearby States We Serve

Wisconsin, Illinois, Iowa, South Dakota, and North Dakota. View our full US service area.