2023 Solar Incentives Guide for Mounds View, MN - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Mounds View?

Source: https://www.dsireusa.org/

Solar incentives are designed to encourage people to switch to renewable energy by providing incentives that lower the financial burden of solar panel installation and use. These incentives might include upfront discounts, cash back or monthly credits towards your utility bill. Some incentives are offered by the federal government, some by the Minnesota government and some by your specific utility company, county or municipality. Some solar incentives you might qualify for are:

• Tax Exemptions: Sales tax exemptions go into effect at the point of sale for your solar panels. Property tax exemptions let you ignore the added value of your solar system when you're calculating how much property tax you need to pay on your house.
• Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government. (A tax credit is different from a tax deduction.)
• Rebates: Rebates, or cash back after a purchase, are usually given prior to any solar tax credits being calculated. Rebates might be given by your local utility company, by your state or by your county.
• Net Metering: Don't forget to speak to your Mounds View utility company about signing a net metering agreement. This allows you to receive credit towards your utility bill every month for the value of excess energy generated by your solar panels. You may receive either a dollar-for-dollar credit or a percentage of the value.

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have some familiarity with. A federal incentive that most people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a specific percentage of your solar system's cost.

The ITC originally covered 30% of the total cost of installing solar panels, although it has fluctuated slightly over the years between 26-30%. The percentage you qualify for will depend on when your solar system was installed. The total cost of installation includes the panels themselves as well as the cost of labor, equipment and accessories. There is no maximum amount you can claim. The ITC applies 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.

To know exactly how much money the ITC could save you, contact your local Mounds View solar panel installer.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now dubbed the Clean Energy Credit. For solar systems installed between January 1, 2022 and December 31, 2032, homeowners may be eligible for a credit for 30% of the total cost. This percentage will decrease annually after 2032 until the Clean Energy Credit expires in 2035. Beginning in 2023, it will also be easier to get credits for energy storage systems under this new program.

More information about the new Inflation Reduction Act can be found here. To better understand how the new Clean Energy Credit applies to you, get in touch with your local Mounds View solar installers.

State & Local Solar Incentives

Some solar incentives may be provided by state and local governments. As with federal incentives, these could include tax credits, rebates and more. These solar incentives — which may be handled by the state of Minnesota, or by your county or municipality — may be offered on an ongoing basis, or for only a limited time.

Next Steps for Installing Solar in Mounds View

You can receive solar incentives from the Minnesota government and the federal government, as well as from your local utility company. Growing availability of solar initiatives in the past 15 years has helped greatly increase nationwide adoption of solar energy. When you're prepared to switch over to solar energy, calling your local Mounds View solar panel installation expert is a great first step.