2022 Inflation Reduction ActMN HOMEOWNERS CAN EARN A 30% TAX CREDIT BY GOING SOLAR
Beginning retroactively from the start of 2022, the IRA is reinstating the old 30% rate, for what is now known as the Clean Energy Credit, until the end of 2032. This 30% rate means a $20,000 solar panel system gets a federal tax credit of $6,000, instead of $5,200 under the previous 26% rate. To give you an idea of how much this is likely to save you, Energy Sage estimates Minnesota’s average residential solar panel installations range from $14,662 to $19,838. In 2033, the tax credit will go back to 26% again and in 2034 it will drop again to 22% before expiring at the end of the year.
Financing Opportunities, Rebates + Tax Advantages
“Even though without fail, every client of ours tells us they are going solar because it’s the right thing to do, they still have to justify that decision economically. We make sure the solar payback and savings IS the right thing for them to do.” —Rob Appelhof, CEO and Founder
At Cedar Creek Energy, we are here to help you find the specific financial incentives associated with your home. Taking advantage of available tax credits, rebates, and depreciation plays a vital role in the return on your investment. We have trusted relationships with a wide range of lenders who specialize in green energy projects, giving you a variety of financing options so you can choose the solution that best fits your budget.
Tax credits and incentives are another bright benefit of switching to solar.
The federal government administered the Residential Renewable Energy Tax Credit, which lets homeowners claim a credit of 26% on their federal income taxes. If you’re on the fence about making the switch to solar energy for your home, don’t forget to take into account tax credits, which can dramatically reduce your overall out-of-pocket investment.
2022 Inflation Reduction Act
The Energy Efficient Home Improvement credit is back, and it’s more powerful than ever! The IRA reinstates this credit until the end of 2032 and increases the maximum tax credit amount to 30% of the cost of all qualifying energy efficiency improvements. There are also rebate programs that will pay you cash to make your home more energy efficient. Learn more about the Inflation Reduction Act.
XCEL ENERGY SOLAR REWARDS PROGRAM
Xcel has a Solar Rewards program for solar system sizes that are 40 kW or less. Since Xcel is the largest utility provider in the metro area, this is a big deal for solar customers in the Twin Cities! You will be paid .07 cents/kWh for every kilowatt-hour produced from your system for ten years. The figure is based on an annual production of kilowatts from your solar panel array and checks come once a year. Cedar Creek Energy will be happy to complete and submit all the paperwork for you. Read more.
Minnesota Power’s Solar Sense Program
Solar Sense Rebate Program – This rebate program is for residential solar installations up to 40 kW. You’ll receive an upfront rebate based on the production estimate of your solar photovoltaic (PV) installation. The payout is based on .94 cents/kW and is capped at $4,000.
Center for Energy + Environment Financing
The Lending Center at the Center for Energy and Environment (CEE) offers low-interest loans for Minnesota homeowners to increase their energy efficiency with solar energy. This financing program provides a 4.99% fixed interest rate for terms up to 10 years, with a maximum loan amount of $50,000. Learn more.
In Minnesota alone, there are over 200 different utilities that make up the utility grid. We have the resources to find the best bonuses and rebates that fit your finances, and we will happily complete all the paperwork and submit it for you to ensure you receive optimal savings.
We’re in the business of saving our customers money, so we know where to find the grants and funding for projects of all shapes and sizes. Grant-awarding agencies will often have grants specific to your type of business or project, or available to specific counties and cities, but not advertised. We pride ourselves in our ability to uncover grants and find the best savings options for your unique project.
Questions about the 2022 Inflation Reduction Act?
Find Your Path To Solar Energy in Minnesota
At Cedar Creek Energy, every time we design a residential energy power system, we are creating it to give optimal payback and a generous rate of return on your investment.
We want every client to receive the maximum funding and savings possible, which is why we stay current on all federal and state rebates, utility incentive program opportunities, and green financing options.
We make each solar project unique in its cost and purpose for our clients and we aim to understand your needs to create the best return on your investment
Considerations when Going Solar in MN
- Number of solar panels in your system
- Amount of electricity you need
- Aesthetics and placement of system
- % of electric costs you wish to offset with a solar power PV installation
- Whether selling your excess solar energy back to Xcel, Ottertail, or other utility is an option
- Battery storage or backup storage system considerations
- Grants available for your proposed system size
- Financing available that you can justify
- Tax advantages offered
- Rebates and bonuses offered
Not sure where to start? We’d love to chat!