2023 Solar Incentives Guide for Brockway, MN - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Brockway.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
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What Solar Tax Credits, Incentives, and Rebates are Available in Brockway?
Xcel Energy - Solar*Rewards Program
Medium-sized Systems 25.1-500 kW: $0.0375/kWh
Large Systems (>500kW): Determined through competitive bid
Solar Energy Sales Tax Exemption
Wind and Solar-Electric (PV) Systems Exemption
Wind: 100% exemption from real and personal property taxes
Wind Energy Sales Tax Exemption
Xcel Energy (Electric and Gas) - Residential Energy Efficiency Rebate Program
Natural Gas Furnace Existing Home: $200-$400
Natural Gas Furnace New Construction: $100-$200
Natural Gas Hot Water Boiler: $100-$400
ECM Furnace: $100
Central AC: $150-$450
Tank Water Heater: $75-$500
Tankless Water Heater: $250
Attic/Wall Insulation: 30% of project cost
Air Sealing: $150-$200
ECM Motor Furnace Fan: $125
Programmable Thermostat: $10
Heat Pumps: $175-$475
Water Heating: $100-$250
Clothes Washer: $10
Ground Source Heat Pump: $150/ton
Brainerd Public Utilities - Residential Energy Efficiency Rebate Program
Clothes Washer: $35
Electric Clothes Dryer: $35
Room/Window A/C: $35
High Efficiency Electric Water Heater: $35
Central A/C Tune-Up: $35
Central A/C: $200-$350
Mini Split/Ductless A/C: $250
ECM Replacement Motor: $100
Heat Pump Water Heater: $250
Air Source Heat Pump: $250
Geothermal Heat Pump: $100/ton
Xcel Energy - Renewable Development Fund Grants
Connexus Energy - Residential Energy Efficiency Loan Program
Great River Energy (28 Member Cooperatives) - Energy Wise Residential Efficiency Rebates
Home Energy Loan Program
Renewable Energy Production Incentive
1.0¢/kWh for certain hydro facilities in need of repair
Minnesota Power - SolarSense Solar Rebate Program
Minnesota Power - Residential Energy Efficiency Rebate Program
Central AC: $50
Air Source Heat Pump: $300-$1200
Electronically Commutated Motors: Varies, see program website
Ground Source Heat Pump: $200-$400 per ton plus $200 for ECM motor
Smart Thermostat: $75
Ceiling Fan: $10
Heat Pump Water Heater: $400
Drain Water Heat Recovery: $400
Minnesota Power - Residential New Construction Rebate Program
Central A/C: $50
Drain Water Heat Recovery unit: $400
Air Source Heat Pumps: $50 - $1,000
Drain Water Heat Recovery Unit: $400
Ground Source Heat Pump: $200-$300
Electronically Commutated Motors: $200-$600 (higher incentive levels are in combination with central AC or Air Source Heat Pumps)
ENERGY STAR Appliances:
Refrigerator/Freezer Recycling: $50
Heat Pump Water Heater: $50
LED Bulbs: $3-$5
LED Fixtures: $10 - $15
Stearns Electric Association - Residential Energy Efficiency Rebate Program
Ductless Air Source Heat Pump: $300
Freezer (with recycling of your old unit): $50
Pool Air Source Heat Pump: $400
Refrigerator (with recycling of your old unit): $50
Variable Speed Pool Pump: $200
Heating & Cooling
Air Source Heat Pump: $550-$700
Dual Fuel Heating: $200
Electronically Commuted Motor: $25
Electric Water Heater: $100
Geothermal Heat Pump: $150/ton
Heat Pump Water Heater: $200
Marathon or HTP Water Heater: $100 (50 gal.) - $300 (85 gallons or more)
Peak Shave Water Heating & Dual Fuel: $5 monthly bill credit
Storage Space Heating: $50/kW
Stored Water Heating: $7.50 monthly bill credit
East Central Energy - Residential Energy Efficiency Rebate Program
Heat Pump/AC Tune Up: $25
Air-Source Heat Pumps: $300 - $630
Geothermal Heat Pump: $400/ton
Freezer/refrigerator with recycling: $25
Wi-Fi Enabled Thermostat: $25
Crow Wing Power - Residential Energy Efficiency Rebate Program
Air Source Heat Pump: $300 - $750
Boiler or Plenum Heater: $400
Clothes Washer: $40
Cycled Air Conditioning: $30 - $75
Ductless (Mini-Split) Air Source Heat Pump: $100 per interior head
Electronically Commuted Motor: $50
Fluorescent Bulb Recycling: $2/bulb
Geothermal Heat Pump: $100/ton
Smart Thermostat: $20/unit
Water Heater: $200
Off-Peak Water Heater: $300-$400
Off-Peak (thermal storage) home heating: $50/kW
Federal Residential Renewable Energy Tax Credit
Solar incentives are designed to make renewable energy usage more affordable through financial incentives for those who install solar panels on their homes. Various kinds of incentives, including cash back, discounts or monthly utility bill credits, may be available to you. Some incentives may be offered 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:
- Rebates: Rebates, or partial refunds after a purchase, are typically applied before any solar tax credits are calculated. Rebates might be given by your local utility company, by your county or by your state.
- Net Metering: Net metering becomes relevant once your solar panels are up and running. If you have a net metering agreement with your Brockway utility company, it will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some areas, this credit is dollar-for-dollar, while in other places you might receive a refund equivalent to a percentage of the value.
- Tax Credits: These credits are dollar-for-dollar reductions (not deductions) in how much in taxes you owe the federal government.
- Tax Exemptions: Your solar system could qualify for exemptions on both sales and property tax. Sales tax exemptions are applied at the time of purchase. Property tax exemptions allow you to exclude the value added by your solar panels when calculating property taxes on your home.
Federal Solar Incentives
When thinking about solar incentives, federal incentives might be the first thing that comes to mind. One of the incentives that most people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). The ITC is a tax credit for a predetermined percentage of your solar system's cost.
The ITC applies to solar panels installed after January 1, 2006 on a primary or secondary residence in the United States that you own. The credit initially covered 30% of the total cost — for panels, accessories, labor and equipment — although the percentage may range from 26-30%, depending on when your solar project was undertaken. There is no cap on the amount you can claim.
Your local Brockway solar panel installation expert can offer more information about the ITC and how it applies to your situation.
In August 2022, the ITC (now referred to as the Clean Energy Credit) was expanded and extended by the passing of the Inflation Reduction Act. Under the new program, solar installation projects started after January 1, 2022 and completed by the end of 2032 can qualify for a 30% tax credit. This percentage will then see a slight annual decrease until the end of the current Clean Energy Credit in 2035. Starting in 2023, the expansion to the program will also make it easier to get credit for energy storage systems.
More information about the new Inflation Reduction Act can be found here. To understand how the new Clean Energy Credit will apply to you, speak with your local Brockway 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. Incentives might be offered by the Minnesota government, or by your county or municipality.
Next Steps for Installing Solar in Brockway
Solar energy use nationwide has significantly increased in the last 15 years, in part due to the increase in availability of solar incentives. You may get these incentives from the federal government, the Minnesota government or your local utility company. We suggest talking to your local Brockway solar installation company for more information about these incentives and to ensure that you're getting the largest number possible for your solar system.
EcoWatch's Brockway, MN Solar Incentives FAQs
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