Everything You Need to Know About Xcel Energy’s Solar*Rewards Program in 2025
Xcel Energy’s Solar*Rewards program is back for another year, offering fantastic financial incentives for residential and qualifying commercial customers in Minnesota who switch to solar energy. With an updated incentive budget and higher benefits for income-qualified participants, 2025 is shaping up to be a great year to go solar! Here’s everything you need to know about the 2025 Solar*Rewards program.
What Is Solar*Rewards?
Solar*Rewards is a 10-year incentive program offered to Xcel Energy customers who install solar systems. Through the program, homeowners earn extra money on the energy they produce. The funds are limited and allocated on a first-come, first-served basis.
The program operates alongside the net metering rules in place in Minnesota, which allow you to send any surplus energy your system produces back to the Xcel grid in exchange for bill credits or cash. These credits can be used to offset energy costs when your panels aren’t generating power, like during the night or cloudy weather.
2025 Solar*Rewards Incentives
In 2025, Xcel will pay $.03 for every kilowatt-hour your solar array produces for 10 years. This incentive is in addition to the net metering rules in Minnesota. (see above)
It may not sound like much at first, but this incentive can add up to thousands of dollars over the 10-year agreement. You can expect a yearly production payment from Xcel in February.
Here are more details:
- Residential Systems: $0.03 per kilowatt-hour (kWh) of energy produced.
- Income-Qualified Residential Systems:
- 60 days post install: $3.00 per Watt installed.
- Solar Rewards Production: $0.03 per kWh.
- Income-Qualified Non-Profit and Government Systems:
- 60 days post install: $1.00 per Watt installed.
- Solar Rewards Production: $0.02 per kWh.
- Income-Qualified For-Profit Systems (e.g., multifamily housing):
- 60 days post install: $0.50 per Watt installed.
- Solar Rewards Production : $0.02 per kWh.
For income-qualified homeowners, the $3.00/W payment is a game-changer. For example, a 10 kW system (10,000 Watts) would qualify for a $30,000 payment.
Who Can Enroll?
To qualify for Solar*Rewards, you must meet the following criteria:
- Be an Xcel Energy customer.
- Ensure your system generates no more than 120% of your historical energy usage.
- Cedar Creek will help to determine your appropriate system size.
- Own the property where the solar system is installed.
- Meet Xcel’s personal liability insurance requirements of $300,000
When and How to Apply
Cedar Creek Energy will apply your project for Solar Rewards with our Interconnection application. The program funding is limited, and is now being allocated.
Why Cedar Creek Energy Is the Right Partner
At Cedar Creek Energy, we make it easy to take advantage of Solar*Rewards and other incentives. We’ll handle the entire application process for you, ensuring you maximize your savings while enjoying a seamless transition to solar energy. From designing your system to managing the paperwork, we’ve got you covered!
We’ve helped thousands of Minnesotans switch to solar and maximize their savings. Let us help you, too! Contact us today to learn more about Solar*Rewards and get a free quote for your solar project.