Financial Incentives
for Residential Solar Projects
Residential Solar Photovoltaic Projects
Tax Incentives
| • |
Federal
Tax Credit: Thirty (30) percent of the cost
of solar thermal and PV systems, up to a maximum of $2,000
per household, can be credited against Federal income tax
obligations. The Federal Solar Tax credit is for expenditures
on solar systems "placed in service" between January
1, 2006, and December 31, 2007. The tax credit basis is after
state/utility rebates and sales tax exemption.
More Information: Frequently
Asked Questions on the New Federal Solar Tax Credits
|
| • |
State
Sales Tax Exemption: Equipment purchased solely
for use in a solar system is exempt from Minnesota State sales
tax. Sales tax paid on equipment installed by the homeowner
can be rebated if the appropriate forms are filed with the
Minnesota Department of Revenue. |
Rebates
| • |
Minnesota
Department of Commerce Rebate: $2,000 per
kilowatt (kW) of capacity, up to $20,000 (10 kW) per installation.
Available Statewide. Ends when funds expire or December 2007. |
| • |
Minnesota
Department of Commerce Rebate:
Contact: www.commerce.state.mn.us,
(651) 296-5175 |
| • |
Minnesota
Power Solar Electric Rebate Program (Minnesota Power customers
only): $2,000 per kW of capacity, up to $4,000
(2 kW). The number of rebates given out per year is limited
by the budget, and provided on a first-come, first-served
basis. May be use in conjunction with the MnDOC rebate.
Contact: www.mnpower.com,
1-800-228-4966 x2843 |
| • |
Great
River Energy Solar Electric Rebate Program (Customers of GRE
or GRE-member coops only): $2,000 per kW of
capacity, up to $4,000 (2 kW). The number of rebates given
out per year is limited by the budget, and provided on a first-come,
first-served basis. May be use in conjunction with the MnDOC
rebate.
Contact: www.greatriverenergy.com,
(763) 441-3121
|
Production Incentives
| • |
Net
Metering: Minnesota utilities must purchase
excess power from small renewable energy facilities at the
same price that they charge for electricity. Available statewide.
|
| • |
Solar Choice
Program: Three municipal utilities offer a
production credit (over and above the retail rate) instead
of a rebate (Austin,
Owatonna,
and Rochester
municipal utilities. The credit is dependent on the number
of contributors signed up in any given year. |
Residential Solar Thermal Projects
Tax Incentives
| • |
Federal
Tax Credit: Thirty (30) percent of the cost
of solar thermal and PV systems, up to a maximum of $2,000
per household, can be credited against Federal income tax
obligations. The Federal Solar Tax credit is for expenditures
on solar systems "placed in service" between January
1, 2006, and December 31, 2007. The tax credit basis is after
state/utility rebates and sales tax exemption.
More Information: Frequently
Asked Questions on the New Federal Solar Tax Credits
|
| • |
State Sales
Tax Exemption: Equipment purchased solely
for use in a solar system is exempt from Minnesota State sales
tax. Sales tax paid on equipment installed by the homeowner
can be rebated if the appropriate forms are filed with the
Minnesota Department of Revenue. |
Source: Minnesota Department of Commerce
Energy Information Center, Solar Energy Incentives, 01/10/06
|
