2025 Solar Incentives Guide for Blaine, MN - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Blaine?

Source: https://www.dsireusa.org/

The term "solar incentives" broadly refers to financial incentives that are in place to encourage increased use of renewable energy by making solar panels more affordable. Various kinds of incentives, including discounts, cash back or monthly utility bill credits, may be available to you. Some incentives may be handled by the state of Minnesota, by your utility company or by county or municipality, while others are federal. Some solar incentives you might qualify for are:

• Tax Exemptions: Sales tax exemptions are effective at the point of sale for your solar panels. Property tax exemptions allow you to ignore the added value of your solar system when you calculate how much property tax you need to pay on your house.
• Net Metering: Be sure to speak to your Blaine utility company about signing a net metering agreement. This allows you to receive credit towards your utility bill every month for the value of excess energy generated by your solar panels. You might receive either a dollar-for-dollar credit or a percentage of the value.
• Tax Credits: Unlike tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.
• Rebates: A rebate is a partial refund after the purchase of your solar system. These may be offered by your local utility company, your county or your state. The rebates are usually applied before tax credits are calculated.

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have some knowledge of. An incentive that most people are probably familiar with is the Federal Solar Investment Tax Credit (ITC). The ITC is a tax credit for a certain percentage of the cost of your solar system.

The ITC can be applied to solar systems installed after January 1, 2006, and allows you to deduct from your taxes a percentage of the total cost of solar panels, labor, accessories and equipment. You can claim this credit for a solar panel system installed on a primary or secondary residence that you own in the United States. The original claim amount was 30% of the total cost, although the amount you can claim may range between 26-30%. There is no maximum amount you can claim.

To understand exactly how much money the ITC could save you, talk to your local Blaine solar panel installation expert.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now called the Clean Energy Credit. For solar system installations that begin after January 1, 2022, and are completed by the end of 2032, homeowners may be eligible for a credit for 30% of the total cost. After 2033, the percentage will decrease annually until the Clean Energy Credit expires in 2035. The expansion to the program also makes it easier to get credit for energy storage systems, starting in 2023.

More information about the new Inflation Reduction Act can be found here. To understand how the new Clean Energy Credit might apply to you, reach out to your local Blaine solar installation company.

State & Local Solar Incentives

Some solar incentives may be provided at the state and local level. Like with federal incentives, these can include tax credits, rebates and more. Certain incentives are ongoing, while others are only available for a limited time. These incentives may be given by your county or municipality, or by the Minnesota government.

Next Steps for Installing Solar in Blaine

Solar incentives might be offered by your local utility company, the Minnesota government or the federal government. The growing number of available incentives has facilitated the nationwide growth of solar energy use in the last 15 years. We recommend talking to your local Blaine solar installation company to learn more about these incentives and to ensure that you're getting the most money possible for your solar panels.