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

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

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

Solar incentives help mitigate the cost of installing solar panels on your home. Financial incentives like these are in place to encourage more people to convert their home partially or fully to renewable energy. Different kinds of incentives, such as cash back, discounts or monthly utility bill credits, might be available to you. Some incentives may be provided via 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: These could come in the form of property tax exemptions, which would allow you to exclude the value added by your solar panels when calculating the taxes you pay on your home. You could also look for exemptions on sales tax at the time of purchase.
• Rebates: A rebate is a partial refund given after you've purchased your solar system. These may be offered by your local utility company, your county or your state. The rebates are usually applied before tax credits are calculated.
• Tax Credits: Unlike tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.
• Net Metering: Net metering becomes relevant after your solar system is up and running. If you have a net metering agreement in place with your Vadnais Heights utility company, the company will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some areas, this credit is dollar-for-dollar, while in others you may make back a percentage of the value.

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have heard of. The Federal Solar Investment Tax Credit, or ITC, is probably the most commonly known federal solar incentive. The ITC provides a tax credit for a specific percentage of the cost of your solar system.

The ITC originally covered 30% of the cost of solar panel installation, although that number has fluctuated slightly over the last few years between 26-30%. The percentage you qualify for will depend on when your solar system was installed. The total installation cost includes the panels themselves as well as the cost of accessories, labor and equipment. There is no maximum amount you can claim. The ITC applies to solar panels 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 Vadnais Heights solar panel installer can provide more information about the ITC and how it might apply 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). For solar system installations that begin after January 1, 2022 and are completed by the end of 2032, homeowners can receive a credit for 30% of the total cost. The percentage will then decrease annually until the Clean Energy Credit ends in 2035. Beginning in 2023, it will also be easier to qualify for credits for energy storage systems under the new laws.

Click here to learn more about the new Inflation Reduction Act. The best way to fully understand how the new Clean Energy Credit will apply to you is to talk with your local Vadnais Heights solar panel installers.

State & Local Solar Incentives

Some solar incentives may be offered at the local or state level. Similar to federal incentives, these may include tax credits, rebates and more. Certain incentives are ongoing, while others are offered for only a limited time. These local incentives might come from your county or municipality, or from the Minnesota government.

Next Steps for Installing Solar in Vadnais Heights

Nationwide solar energy use has gone up tremendously in the last 15 years, in part due to the proliferation of solar incentives. You can obtain these incentives from the federal government, the Minnesota government or your local utility company. Contact your local solar panel installer today to learn more and to save as much money as possible on a solar system for your Vadnais Heights home.