2023 Solar Incentives Guide for Duluth, MN - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Duluth.
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.
Get a free quote from one of our trusted Duluth solar installers to see how much you can save.
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Updated May 04, 2023
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What Solar Tax Credits, Incentives, and Rebates are Available in Duluth?
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
Minnesota Power - SolarSense Solar Rebate Program
Minnesota Power - Residential Energy Efficiency Rebate Program
Refrigerator: $30
Freezer: $30
Dehumidifier: $25
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
Lighting: $3-$15
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: $30
Freezer: $30
Dehumidifier: $10
Refrigerator/Freezer Recycling: $50
Heat Pump Water Heater: $50
LED Bulbs: $3-$5
LED Fixtures: $10 - $15
Lake Country Power - Residential Energy Efficiency Rebate Program
Ductless Air-source Heat Pump: $450- $750
Heat Pump Water Heater: $500
EC Motors: $25/motor
Replacement Refrigerator/Freezer with Recycling: $25
Refrigerator or Freezer (Recycling only): $25
Dehumidifier: $25
Clothes Dryer: $25
WiFi Thermostat: $25
LED Bulbs: $1/bulb
LED Yard Lights: $25/fixture
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
The term "solar incentives" includes a range of financial incentives designed to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Various kinds of incentives, such as cash back, discounts or credit towards your monthly utility bill, might be available to you. Some incentives may be offered by the Minnesota government, by your utility company or by county or municipality, while others are federal. Some broad categories of solar incentives include:
- Tax Exemptions: Tax exemptions may come in two forms. First, there is sales tax exemption, applied at the time you purchase your solar panels. The second is property tax exemption. This allows you to exclude the value added by your solar system when calculating property tax for your house.
- Net Metering: Net metering becomes relevant after your solar panels are up and running. If you've signed a net metering agreement with your Duluth utility company, they will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some locations, this is a dollar-for-dollar credit, while in other places you might be refunded a percentage of the value.
- Rebates: Solar rebates can be offered by your local utility company, or by your state or county. These rebates are essentially partial refunds that are applied after your purchase of a solar system and before tax credits are calculated.
- Tax Credits: Tax credits are dollar-for-dollar reductions that lower the amount of income tax you owe the government. (This is different from a tax deduction.)
Federal Solar Incentives
When thinking about solar incentives, you likely think of federal incentives first. A federal incentive that most people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). This is a tax credit for a predetermined percentage of the cost of your solar system.
The ITC applies towards solar systems installed after January 1, 2006 and allows you to deduct from your taxes a percentage of the total cost of solar panels, equipment, accessories and labor. You can claim this credit for solar panels installed on a primary or secondary residence in the United States that you own. 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 better understand exactly how much money the ITC could save you, talk to your local Duluth solar panel installation expert.
In August 2022, the Inflation Reduction Act made revisions to the ITC, now dubbed the Clean Energy Credit. The Clean Energy Credit runs until 2035. Any solar installation project that is completed between January 1, 2022 and December 31, 2032 may qualify for a 30% tax credit; the amount will then decrease slightly on a yearly basis until the end of the current program. Starting in 2023, the expansion will also make credits for energy storage systems even easier to claim.
Click here to learn more about the new Inflation Reduction Act. Your local Duluth solar panel installers are the best people to answer your questions about the new Clean Energy Credit and how it will apply to you.
State & Local Solar Incentives
There are often state solar incentives available in addition to federal ones. Tax credits, rebates and more can be offered at a more local level. Certain incentives are ongoing, while others are offered for only a limited time. These local incentives could come from the Minnesota government, or from your specific county or municipality.
Next Steps for Installing Solar in Duluth
The large number of available solar incentives has enormously increased the nationwide adoption of solar energy over the last 15 years. You can get solar incentives from the Minnesota government, the federal government or your local utility company. Your local Duluth 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.
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
EcoWatch's Duluth, MN Solar Incentives FAQs
What if I want to add solar panels to a rental property, vacation home or commercial property? Can I still qualify for incentives?
Many solar incentives apply to a property you own that is located within the United States, and most secondary residences fall into this category. There may be other solar incentives available for commercial properties, depending on the specifics. We recommend getting in touch with your local solar installer and/or tax professional to fully understand what incentives will apply to your specific situation.
How do I know if I qualify for certain solar incentives?
It's a good idea to talk to your local Duluth solar installer to get an understanding of which incentives your project may qualify for. Generally, solar incentives apply to new solar panel systems installed on property you own (in the U.S.) between the dates specified by the incentive. Some incentives, like those provided at the level of the Minnesota government, might have other requirements.
My home already has solar panels. Does my system qualify for any incentives?
An excellent idea would be to talk to a representative from the company that installed your solar system — or call a local Duluth solar installer — to clarify which incentives you might qualify for. If your solar panels were installed after January 1, 2022, you likely qualify for the newly increased 30% tax credit under the Inflation Reduction Act. Systems installed between 2006 and 2021 may qualify for a tax credit of 26-30%.
How much can I save annually on my electric bill if I add solar panels to my house in Duluth?
After adding solar panels to your house in Duluth, you can expect to save around $834.12 per year, or around $15,848.31 over the next 20 years.
Who installs solar panel systems near me?
To find the right solar panel installer for you, check out our guide to the top solar companies in Duluth.
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.