Xcel Announces Minnesota Solar Rebate Program

Minnesota isn’t exactly the first state that comes to mind when most people think of solar, but the Lone Star State and its associated utility companies are making significant strides toward a renewable energy future: Xcel Energy, the Minneapolis-based utility company that services a wide swath of Midwestern states—including Colorado, another burgeoning state for solar—unveiled yesterday its new Solar*Rewards program, which aims to increase the amount of small-scale solar photovoltaic installations in Minnesota.

Through Solar*Rewards, Xcel Energy will offer a one-time solar rebate of $2.25 per installed watt of generating capacity for solar panel installations from 0.5 to 40 kilowatts in size. A 3.5-kilowatt installation, for example, would receive a $7,875 incentive payment—and that’s not including pre-existing state and federal incentives. In return for the rebate check, Xcel would require Solar*Rewards program participants to transfer their Renewable Energy Credits to the utility for a period of 20 years—a small amount to ask for a future of lower electricity bills.

From the news release:

“The program will benefit both our customers and the environment,” said [Laura McCarten, Xcel Energy regional vice president.] “One 3.5 kilowatt photovoltaic system produces enough renewable energy to offset the carbon dioxide emissions produced from driving a car more than 6,000 miles. Also, when we buy your excess energy, we’re adding renewable energy to our grid and, therefore, reducing emissions.”

While it’s barely been a day since the program’s inception, if successful solar programs in Massachusetts or California are any indication, those interested in solar adoption would do well to act early. Solar*Rewards will fund roughly 2 megawatts of solar installations a year for the next three years, which amounts to about 450 4.4-kilowatt system installations annually. The adage “the early bird gets the worm” applies here—as with all good things.