2023 Solar Incentives Guide for Detroit Lakes, MN - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Detroit Lakes.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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Updated September 15, 2023
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What Solar Tax Credits, Incentives, and Rebates are Available in Detroit Lakes?
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
Brainerd Public Utilities - Residential Energy Efficiency Rebate Program
Clothes Washer: $35
Electric Clothes Dryer: $35
Refrigerator: $35
Freezer: $35
Dehumidifier: $20
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
Furnaces: $200-$375
Heat Pump Water Heater: $250
Air Source Heat Pump: $250
Geothermal Heat Pump: $100/ton
Connexus Energy - Residential Energy Efficiency Loan Program
OR
$20,000
Great River Energy (28 Member Cooperatives) - Energy Wise Residential Efficiency Rebates
Home Energy Loan Program
Fix-Up Loan
Renewable Energy Production Incentive
1.0¢/kWh for certain hydro facilities in need of repair
Missouri River Energy Services (23 Member Cooperatives) - Residential Energy Efficiency Rebate
ENERGY STAR:
Clothes Washer: $25
Dehumidifier: $25
LED Lighting: $1.50-$4.00
Refrigerator: $25
Room A/C: $25
Heating and Cooling:
Central A/C or Heat Pump Tune-Up: $30
Air-Source Heat Pump: $250 - $950
Mini Split/Ductless Air Source Heat Pump/Air Conditioner: $250 /Outdoor Condensing Unit
Central A/C: $250 - $450/unit
Geothermal Heat Pump: $200/ton
Heat Pump Water Heater: $150
Programmable thermostat: $25
Lake Region Electric Cooperative - Residential Energy Efficiency Rebate Program
Air-Source Heat Pump: $480 - $630
Central A/C: $50
Minnkota Power Cooperative (12 Utilities) - PowerSavers Residential Energy Efficiency Rebate Program
Clothes Washers: $25/unit
Clothes Dryer: $25/unit
Refrigerators/Freezers: $25 + $25 with recycling
Electric Water Heaters: $150
Programmable Thermostats: 50% of cost
Tune up for Central AC or Air-Source Heat Pump: $25
Air-Source Heat Pump: $200 - $500
Furnace with ECM blower: $100
Ground-Source Heat Pump: $200/ton - $400/ton
Ground-Source Heat Pump Replacement: $100-$200/ton
Insulation and Air Sealing: 30% of cost
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
Solar incentives are meant to encourage people to switch to renewable energy by providing incentives that lower the financial burden of solar panel installation and use. You might be eligible for several types of incentives, including discounts, cash back or credit towards your monthly utility bill, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the Minnesota government and others from the federal government. You might qualify for any of the following types of solar incentives:
- Net Metering: Net metering becomes relevant after your solar system is up and running. If you've signed a net metering agreement with your Detroit Lakes utility company, they will subtract the value of the excess energy produced by your solar system from your monthly utility bill. In some places, this is a dollar-for-dollar credit, while in other places you might make back a percentage of the value.
- Tax Exemptions: Tax exemptions can come in two forms. The first is sales tax exemption, applied at the time you purchase your solar panels. The second is property tax exemption. This allows you to ignore the value added by your solar system when calculating property tax for your home.
- Tax Credits: Unlike tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the federal government.
- Rebates: Solar rebates may be offered by your local utility company, or by your state or county. These rebates work as cash back that is applied after you purchase solar panels and before tax credits are calculated.
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
Best Technology
Tesla Energy
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
Federal Solar Incentives
When someone says "solar incentives," you probably think of federal incentives first. The solar incentive that you're most familiar with is probably the Federal Solar Investment Tax Credit (ITC), which gives you a credit on your taxes equal to a certain percentage of the cost of your solar system.
The ITC can be applied to solar systems installed after January 1, 2006 on a primary or secondary residence that you own in the United States. The credit initially covered 30% of the total cost — for panels, labor, equipment and accessories — although the percentage may range from 26-30%, depending on the installation date of your solar system. There is no cap on the claim amount.
To more fully understand how the ITC might apply to your situation, reach out to your local Detroit Lakes solar panel installer and ask for more information.
In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now dubbed the Clean Energy Credit. The Clean Energy Credit has increased the current credit up to 30% for solar installations undertaken between January 1, 2022 and December 31, 2032. After 2032, the percentage will see a slight decrease annually until the end of the program in 2035. Starting in 2023, the expansion will also make it easier to get credit for energy storage systems.
More information about the new Inflation Reduction Act can be found here. Your local Detroit Lakes solar panel installation experts can answer any questions you have and explain how the new Clean Energy Credit applies to you.
State & Local Solar Incentives
In addition to federal solar incentives, there are often also state ones. Rebates, tax credits and more may be available at a more local level. Some incentives are ongoing, while others are available for a limited time. Incentives may be offered by the Minnesota government, or by your county or municipality.
Next Steps for Installing Solar in Detroit Lakes
There are a variety of solar incentives: those provided by local utility companies, those provided by the federal government and those provided by the Minnesota government, to name a few. The use of solar energy has grown tremendously in the last 15 years, partially thanks to these incentives. Your local Detroit Lakes solar panel installation expert can help you learn more about which incentives you might qualify for, and get you on track to switch to renewable energy today.
EcoWatch's Detroit Lakes, MN Solar Incentives FAQs
What if I am planning to add a solar system to a rental property, vacation home or commercial property? Can I still qualify for incentives?
Many solar incentives are intended to apply to a property you own that is located within the United States, and most secondary residences will fall under this distinction. There may be other solar incentives available for commercial properties, depending on the specifics. We recommend speaking with your local solar installer and/or tax professional to better understand what incentives apply to your specific situation.
What are the highest-rated solar panel installation companies near me?
To find the top solar panel installation companies near you, read our article on Detroit Lakes' top solar panel companies.
What are some environmental benefits of adding solar panels to my house?
Solar energy is renewable — by changing where you get your energy, you help lessen the strain on our planet's resources. You can also reduce your home's CO2 emissions by 450 pounds yearly, or around 9,000 pounds over 20 years.
How long until the federal solar tax credit ends?
The Clean Energy Credit (previously called the federal solar tax credit, or the ITC), is slated to end on January 1, 2035. Currently set at 30%, the credit will drop to 26% in 2033 and to 22% in 2034.
Can I use a combination of solar and another type of renewable energy to power my home?
Yes, you can use multiple types of renewable energy to power your home — for example, a combination of geothermal and solar. You can also use both renewable energy sources and a non-renewable backup source of energy. Make sure that you discuss the details of your plan with your local Detroit Lakes solar installation expert, to get an understanding of what will be needed and what kinds of incentives you will or won't qualify for.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.