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

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

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

The term "solar incentives" generally refers to financial incentives that are in place to encourage increased use of renewable energy by making installing and using solar panels more affordable. You might be eligible for several types of incentives, such as cash back, discounts 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 state of Minnesota and others from the federal government. Some broad categories of solar incentives include:

• Rebates: A rebate is a partial refund given after you've purchased your solar system. Rebates may be offered by your local utility company, your county or your state. The rebates are usually applied before calculating tax credits.
• Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government. (This is different from a tax deduction.)
• Tax Exemptions: These can come in the form of property tax exemptions, which allow you to ignore the value added by your solar panels when paying taxes on your home. You could also look for exemptions on sales tax at the time of purchase.
• Net Metering: Net metering factors in after your solar panels are up and running. If you've signed a net metering agreement with your Rogers utility company, the company will subtract the value of the excess energy your solar system produces from your utility bill each month. In some places, this credit is dollar-for-dollar, while in other areas you might receive a refund equivalent to a percentage of the value.

Federal Solar Incentives

Federal solar incentives are likely to be the first thing that comes to mind when you think about solar incentives. The solar incentive that you're most familiar with is probably the Federal Solar Investment Tax Credit (ITC), which provides a credit on your taxes equal to a certain percentage of the cost of your solar system.

The ITC covers solar systems installed after January 1, 2006 and under this program you can deduct from your taxes a percentage of the total cost of solar panels, accessories, labor and equipment. 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 certain projects may qualify for only 26%, depending on the details. There is no maximum amount you can claim.

Your local Rogers solar panel installer can give you more information about the ITC and how it applies to your situation.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now called the Clean Energy Credit. The Clean Energy Credit has increased the current credit up to 30% for solar systems installed between 2022 and 2032. At this point, the percentage will see a slight decrease annually until the program expires in 2035. Starting in 2023, the expansion will also make it easier to get credit for energy storage systems.

Click here to learn more about the new Inflation Reduction Act. Your local Rogers solar panel installation expert is the best person to answer your questions regarding the new Clean Energy Credit and how it may apply to you.

State & Local Solar Incentives

Tax credits, rebates and more can be provided at multiple levels. On top of federal solar incentives, there are often state and local ones as well. Some incentives are offered for only a limited time, while others are ongoing. Your local incentives could come from your county or municipality, or from the Minnesota government.

Next Steps for Installing Solar in Rogers

There are many types of solar incentives: those offered by the federal government, those offered by the Minnesota government and those offered by local utility companies, to name a few. Solar energy use has increased tremendously in the last 15 years, partially thanks to these incentives. Your local Rogers solar panel installation company can give you more information about which incentives you might qualify for, and get you feeling good about making the change to renewable energy today.