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

October 10, 2025
Australia's renewable energy sector recorded its slowest month of the year for additions in September, with 5.8GW of new projects added to development pipelines, according to data from Rystad Energy.
October 9, 2025
Solar PV is the world’s cheapest technology to generate electricity, according to a study from the University of Surrey, in the UK.
October 8, 2025
The NSW Independent Planning Commission has granted planning approval for Potentia Energy's 500MW Tallawang solar-plus-storage project.
October 8, 2025
Frontier Energy plans to expand its Waroona Renewable Energy Project into a renewable energy precinct by 2031, targeting up to 1GW solar.
September 30, 2025
SynergyRED, a wholly owned subsidiary of Synergy, has submitted a development application for a 2GW hybrid renewable energy project in Western Australia's Mid-West Region.
September 29, 2025
Burns & McDonnell examines the outlook of the utility-scale solar sector amidst the latest policy and tariff changes.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK