Energy Storage in Minnesota
Relying solely on the grid means you’re vulnerable to power outages, even if you have solar panels. When the grid goes down, so does your solar system. But there’s a smart solution—pair your solar array with an energy storage system. This combo lets you store excess solar energy during the day and use it at night or during outages, giving you true energy independence. At Cedar Creek Energy, we’re here to ensure your Minnesota solar project delivers top-notch results from start to finish.
New Energy Storage Incentives Are Here!
Starting August 1, 2024, Minnesota is rolling out incredible incentives to help you boost your energy resiliency with battery storage systems. If you’ve been thinking about pairing solar panels with battery storage, now’s the time to act. These new state incentives will cover a significant portion of your installation costs, making it easier than ever to protect your home or small business from power outages and make the most of your solar energy.
The incentive you qualify for depends on your utility provider:
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- Xcel Energy: Get $175 per kWh, up to $5,000.
- Non-Xcel: Get $250 per kWh, up to $7,000.
If you’re not with Xcel Energy, you’ll get the incentive from the Department of Commerce. Both incentives are first come, first served, and funds are limited! So the sooner you act, the better!
At Cedar Creek Energy, we make it easy for you to take advantage of these savings. When you install a solar-plus-storage system with us, we’ll enroll you in these programs as part of the interconnection process, so you’ll receive your credits directly after installation.
Don’t miss out on this chance to enhance your energy independence and save big. Contact Cedar Creek Energy today to learn more and secure your spot in this exciting new program!
FAQs About Residential Energy Storage
What battery incentives are available?
The MN Department of Commerce offers incentives for energy storage systems for both Xcel and Non-Xcel customers. These rebates help offset the cost of installing a battery system and are awarded on a first come, first served basis. The incentives are:
- Xcel Energy Customers: Up to $5,000 rebate
- Non-Xcel customers: Up to $7,000 rebate
The rebates will be provided approximately 90 days after your installation as a direct payment to the battery owner. For Xcel Energy territory, your payment will come from Xcel Energy. For all other territories, your payment will come from the Minnesota Department of Commerce.
Are batteries eligible for the federal solar tax credit (ITC)?
Yes! You can claim a 30% Federal Tax Credit on your battery purchase, whether or not you have solar installed.
Batteries with solar have been eligible for a 30% tax credit since the Inflation Reduction Act of 2022. This was expanded in 2023 to include “standalone energy storage” solutions without solar. This means even if you already have solar and claimed the tax credit on your solar system, you can claim it again with your battery purchase.
Is there ROI on batteries?
Batteries offer peace of mind during power outages by serving as a reliable backup source of electricity. Since Minnesota is a net metering state (excess energy produced goes to the grid and is compensated at the average retail rate), utilizing a battery for financial electrical savings is unrealistic. However, if regulations and time-of-day metering policies change, batteries could potentially provide a stronger return on investment.
How many batteries do I need?
The number of batteries depends on what you want to power and for how long.
- Basic Coverage: Most homes can be supported by one Tesla Powerwall 3.
- Add-Ons: While sump, well, and heat pumps, air conditioning, and geothermal systems can be accommodated, adding an additional battery may be advisable.
- Plan for Seasonal Performance: In MN, we’ll see considerably longer battery coverage in the summer due to the longer daylight hours. The additional light allows the battery to recharge as it’s being deployed. In the winter months, a battery may take several days to fully charge from solar because of snow coverage and fewer light hours.
Can I add a battery to my existing solar array?
Yes! You can add a battery to your current solar array, but it’s important to work with your solar professional to size the battery system appropriately.
Your array’s AC size determines the minimum number of batteries required to work properly as a complete system. Batteries and solar must work together in ratio to prevent the solar array from overloading the battery system during peak production.
Where can I store my battery?
You’ll want to look for an interior space close to your main service panel. An insulated garage is also an option. Batteries make a little noise, so it’s best not to have them in a bedroom. Space requirements depend on the battery selected.
Will the battery charge from the grid?
Utilities in MN currently only allow charging your battery from the grid when the National Weather Service issues a “storm watch.” If your batteries have a feature that detects this, they will automatically charge up. This can be adjusted in the settings. There is no current peak/off peak program that will allow the use of a battery.
How long will battery installation take?
Time installing and commissioning batteries depends on the location of the batteries in relation to the meter and the main service panel. Typical installations that are located near the main electrical service panel usually take one day, and another day to commission the system.
What is the Interconnection timeline for batteries?
Adding a battery requires a utility interconnection application, just like when you install solar. Cedar Creek Energy will handle the process, including creating a plan set. The utility will process the application through their standard review. For Xcel, this can take 3 months.
What maintenance is required for an energy storage system?
Energy storage systems generally require minimal maintenance, involving periodic checks on battery health, connections, and software updates.
What is the lifespan of an energy storage system?
The lifespan of an energy storage system depends on factors like technology, usage patterns, and maintenance. Typically, well-maintained systems can last around 5-15 years or more.
What is an energy storage system, and how does it work?
An energy storage system is a technology that stores excess energy for later use. It works by converting and storing energy from sources like solar panels in batteries or other technologies, which can be discharged when needed.
Can an energy storage system be remotely monitored and controlled?
Yes, energy storage systems can be remotely monitored and controlled using advanced software and communication technologies, allowing users to optimize their energy usage and system performance.
Be Prepared for anything with Energy Storage
Take control of your energy with a residential storage system from Cedar Creek Energy. By pairing smart batteries like the Tesla Powerwall with your solar panels, you can store extra energy during the day and use it when you need it most—cutting reliance on the grid, lowering your electricity bills, and giving you more control over your home’s power. When storms or outages hit, your system keeps the lights on, the fridge running, and your family comfortable. Plus, with load shifting, you can tap into stored energy when rates are higher, saving even more. It’s energy independence, cost savings, and peace of mind all in one.
Is Solar Energy Storage Right for You?
If you want more energy independence, lower bills, and peace of mind during outages, the answer is yes! Cedar Creek Energy makes it simple to get started. Our expert team designs a system that fits your unique energy needs and maximizes your savings. From the first consultation to final installation, we handle it all.
Take Control of Your Energy Today
Want to know if energy storage is right for your home? Get a free solar bid or give us a call. We’ll help you explore your options and show you how to save with clean, reliable energy. Your path to energy independence starts here!
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