2025 Solar Incentives Guide for Fairmont, MN - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Fairmont.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2024 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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What Solar Tax Credits, Incentives, and Rebates are Available in Fairmont?
Fairmont Public Utilities - Residential Energy Efficiency Rebate Program
Light Fixtures: 50% of cost
Refrigerators/Freezers: $25 plus an additional $50 to pay for recycling
Dishwashers: $25-$40
Clothes Washers: $50-$100
Dehumidifiers: $15 (no recycling) or $25-$40 (recycling)
Efficient Furnace Fan Motors: $50-$125
Room A/C: $25 plus an additional $25 for recycling
Central A/C and Air Source Heat Pumps: $100-$200
Central A/C and Air Source Heat Pump Tune-Up: $35
Ground Source Heat Pumps: $200/ton plus $25/ton for each 1 EER above minimum qualifying efficiency
Water Heaters: $200
Great River Energy (28 Member Cooperatives) - Energy Wise Residential Efficiency Rebates
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
Wind and Solar-Electric (PV) Systems Exemption
Wind: 100% exemption from real and personal property taxes
Fix-Up Loan
Wind Energy Sales Tax Exemption
Renewable Energy Production Incentive
1.0¢/kWh for certain hydro facilities in need of repair
Home Energy Loan Program
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
Solar incentives are meant to help mitigate the cost of installing a solar panel system on your home. These financial incentives are designed to encourage more people to make the switch to renewable energy. Incentives could include things like discounts, cash back or credit towards your monthly utility bill. Some incentives are handled federally, while others are offered by the Minnesota government or by your utility company, county or municipality. Types of solar incentives might include:
- Rebates: A solar rebate is a partial refund given after you've purchased your solar system. These might be offered by your local utility company, your county or your state. The rebates are usually applied before tax credits are calculated.
- Tax Exemptions: These can come in the form of property tax exemptions, which would allow you to exclude the value of your solar system when calculating the taxes you pay on your home. They may also include exemptions on sales tax at the time of purchase.
- Tax Credits: Tax credits are dollar-for-dollar reductions that lower the amount of income tax you owe the federal government. (A tax credit is different from a tax deduction.)
- Net Metering: Net metering becomes relevant after your solar panels are up and running. If you have a net metering agreement with your Fairmont utility company, the company will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this credit is dollar-for-dollar, while in other places you may make back a percentage of the value.
Federal Solar Incentives
When thinking about solar incentives, federal incentives might be the first thing that comes to mind. The Federal Solar Investment Tax Credit, or ITC, is likely the most well-known federal solar incentive. The ITC provides a tax credit for a set percentage of your solar system's cost.
The ITC applies to solar systems installed after January 1, 2006, on a primary or secondary residence that you own in the United States. Originally, the tax credit was for 30% of the total cost – for panels, equipment, labor and accessories – although the percentage may range from 26-30%, depending on when your solar project was undertaken. There is no cap on the claim amount.
To better understand how the ITC may apply to you, contact your local Fairmont solar panel installation expert and ask for more information.
In August 2022, the Inflation Reduction Act made revisions to the ITC, now referred to as the Clean Energy Credit. Homeowners can now receive a credit equal to 30% of the total solar system installation costs for projects that began after January 1, 2022, and will be finished by the end of 2032. The percentage will then begin to decrease on a yearly basis until the Clean Energy Credit expires in 2035. Beginning in 2023, it will also be easier to qualify for credits for energy storage systems with the new act.
Click here to learn more about the new Inflation Reduction Act. Your local Fairmont solar panel company is the best resource for answering your questions about the new Clean Energy Credit and how it applies to you.
State & Local Solar Incentives
In addition to those provided at the federal level, there are often also state solar incentives. Tax credits, rebates and more may be available at a more local level. The incentives — which may be handled by your county or municipality, or by the state of Minnesota — could be offered for only a limited time, or on an ongoing basis.
Next Steps for Installing Solar in Fairmont
Solar energy use nationwide has gone up significantly in the last 15 years, in part due to the increase in availability of solar incentives. You may get these incentives from the Minnesota government, the federal government or your local utility company. Your local Fairmont solar panel installation company can give you more information about which incentives you should apply for, and get you started on the path to switching to renewable energy today.
EcoWatch's Fairmont, MN Solar Incentives FAQs
Who installs solar panels near me?
To learn about the top solar panel installation companies near you, take a look at our article on the top solar companies in Fairmont.
I want to change out my appliances for ones that are more energy-efficient. Are there any incentives I can claim?
With the passage of the new Inflation Reduction Act, there are several new financial incentives that are available when you make eco-friendly improvements to your home. More details on these incentives, including information about incentives for purchasing new appliances, can be found here.
Can I use multiple types of renewable energy to power my home?
You can power your home with multiple types of renewable energy, or a combination of renewable and non-renewable energy. Be sure to discuss your ideas with your local Fairmont solar installation expert. They can help you as you plan for your project and educate you on the various incentives that you might or might not qualify for.
What if I am planning to add solar panels to a rental property, vacation home or commercial property? Will I still qualify for incentives?
Many solar incentives are intended to apply to a property located within the United States that you own, and most secondary residences will fall under this distinction. Other solar incentives may be 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 apply to your specific situation.
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.