Minnesota passes US$80 million incentive package to spur solar deployment

Facebook
Twitter
LinkedIn
Reddit
Email
A number of important policy changes are also included in the package. Image: Xcel

The state of Minnesota has passed an US$80 million solar and energy storage incentive programme, including multiple programmes and policy changes.

The Omnibus Environment, Natural Resources, Climate, and Energy Finance and Policy bill lists several programmes that the state will work on, such as the US$29.3 million Solar for Schools programme, which aims to provide grants to stimulate the installation of solar energy systems on or adjacent to school buildings by reducing the school’s electricity expenses and to enable schools to use the solar energy system as a teaching tool that can be integrated into the school’s curriculum.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Minnesota also spares US$5 million for the Solar on Public Buildings Programme to increase solar access to a wider range of Minnesota’s communities, providing grants to stimulate the installation of solar energy generating systems on public buildings.

According to Minnesota Solar Energy Industries Association (MnSEIA), US$12.5 million is spared for Xcel Energy’s Solar Rewards programme. A total of US$420,000 is assigned for a multi-agency study and report on developing a statewide system to reuse and recycle solar panels. 

Energy storage projects include a US$7 million incentive programme for on-site energy storage systems. PV Tech’s sister site Energy-Storage.News has a report focused on energy storage.

Moreover, the bill made several policy changes. For example, the Community Solar Garden Programme (CSG) updates remove contiguous county restrictions for new projects, as this arbitrary rule states that CSG subscribers have to live in the same county as the solar garden or a contiguous county. In addition, the individual garden size cap increases from 1MW to 5MW.

The bill also established a new Distributed Generation (DG) Standard that requires all utilities to meet up to 3% of solar development through non-subscribers. This is estimated to add about 800MW of new solar to the grid.

Logan O’Grady, executive director of MnSEIA, said: “The policies created in this Legislative Session will set off a historic boom for clean energy in our state. It’s a huge signal to the country that Minnesota is serious about solar and that we’re a great market to do business in.”

MnSEIA added that Minnesota’s market has been friendly to clean energy but hampered by outdated legislation, interconnection challenges, and lack of funding.

Read Next

August 10, 2026
US installer Sunrun has reversed recent declines in PV and energy storage installations in the second quarter of 2026, but trimmed its forecasts for the year.
August 10, 2026
An independent review of the Australian Energy Market Operator (AEMO) has recommended 14 changes to the organisation's governance framework.
August 7, 2026
Solar module manufacturer Heliene has laid off 93 employees at its Mountain Iron solar module assembly plant in the US state of Minnesota.
August 7, 2026
Gentari Australia has reached mechanical completion at the 243MWp Maryvale Solar and Energy Storage Project near Dubbo in New South Wales.
August 7, 2026
Australia's AEMC sets a renewable energy framework for data centres as NSW introduces REZ-style legislation to control grid access and costs.
August 4, 2026
Australia's CEFC has committed AU$100 million (US$65.8 million) to a new programme targeting mid-scale hybrid solar-plus-storage projects.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye