2025 Solar Incentives Guide for Hibbing, MN - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Hibbing.
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 Hibbing?
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
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
Connexus Energy - Residential Energy Efficiency Loan Program
OR
$20,000
Minnesota Power - SolarSense Solar Rebate Program
Wind and Solar-Electric (PV) Systems Exemption
Wind: 100% exemption from real and personal property taxes
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
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
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
Federal Residential Renewable Energy Tax Credit
Source: https://www.dsireusa.org/
Solar incentives are designed to mitigate the cost of installing solar panels on your home. This category of financial incentives is in place to encourage more people to convert their home partially or fully to renewable energy. Incentives might include things like discounts, cash back or credit on your utility bill each month. Some incentives are offered by the federal government, while others are provided by the Minnesota government or your utility company, county or municipality. You might qualify for any of the following types of solar incentives:
- Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the federal government.
- Tax Exemptions: Your solar system may qualify for both sales tax and property tax exemptions. Sales tax exemptions are applied at the time of purchase. Property tax exemptions allow you to ignore the value added by your solar panels when you are calculating property taxes on your house.
- Rebates: Rebates, or partial refunds after a purchase, are normally given prior to any solar tax credits being calculated. Rebates may be given by your local utility company, by your state or by your county.
- Net Metering: Be sure to speak with your Hibbing utility company about signing a net metering contract. This allows you to get a 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.
Federal Solar Incentives
Federal incentives are the type of incentives that you are most likely to have heard of. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. The ITC is a tax credit that reduces your taxes by a predetermined percentage of the money you spend on solar panels for your home.
The ITC initially applied to 30% of the cost of installing solar panels, although it has fluctuated slightly over the last few years between 26-30%. The installation date of your solar system will determine what percentage you qualify for. The total installation cost includes the panels themselves as well as the cost of labor, accessories and equipment. There is no maximum amount you can claim. The ITC can be applied to solar systems installed after January 1, 2006, on your primary or secondary residence. The residence must be owned by you and in the United States.
Your local Hibbing solar panel installer can offer more information about the ITC and how it applies to your situation.
The Inflation Reduction Act, passed in August 2022, expanded and extended the ITC (as well as retitling it the Clean Energy Credit). The Clean Energy Credit is valid until 2035. Any solar installation project that is completed between January 1, 2022, and December 31, 2032, may qualify for a 30% tax credit. This amount will then decrease slightly on a yearly basis until the end of the current program. The program expansion also makes it easier to get credit for energy storage systems, beginning in 2023.
More information about the new Inflation Reduction Act can be found here. Your local Hibbing solar panel installation experts can answer any questions you have and explain how the new Clean Energy Credit may apply to you.
State & Local Solar Incentives
Not all solar incentives are federal; rebates, tax credits and more may be offered at the local or state 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 Hibbing
Solar energy use nationwide has gone up tremendously in the past 15 years, in part thanks to the proliferation of solar incentives. You can obtain these incentives from your local utility company, the Minnesota government or the federal government. Your local Hibbing solar panel installation expert can give you more information about which incentives you can apply for, and get you feeling good about making the change to renewable energy today.
EcoWatch's Hibbing, MN Solar Incentives FAQs
How do I learn if I qualify for solar incentives?
Typically, solar incentives apply to:
- a new solar system
- installed on property that you own
- within the U.S.
- between the dates specified by a particular incentive.
Specific incentives, including those run by the Minnesota government or by your county/municipality, could have additional qualifications. Speak with your local Hibbing solar installer to learn more about what incentives your project will qualify for.
How much can I save on my electric bill annually if I install solar panels on my house in Hibbing?
After adding solar panels to your Hibbing home, you can anticipate savings of approximately $898.06 per year, or approximately $17,063.13 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 best solar companies in Hibbing.
When does the federal solar tax credit end?
The Clean Energy Credit (formerly named the federal solar tax credit, or ITC), currently ends on January 1, 2035. Currently set at 30%, the credit will drop to 26% in 2033 and to 22% in 2034.
Can I use multiple types of renewable energy to power my home?
Yes, you can use multiple types of renewable energy to power your home, such as a combination of solar and wind power. You can also combine renewable energy generation with a backup source of non-renewable energy. Be sure to discuss your proposed plan with your local Hibbing solar panel installer, to get an understanding of what will be needed and what incentives you will or won't qualify for.
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