Everything You Need to Know About Minnesota’s Energy Storage Incentives

Nellie Moran

Updated on:

November 15, 2024

As the dark clouds roll in over the pine trees, their branches start to bend to the will of the wind. It starts to grow dark quickly. You frantically search the mess of a junk drawer for the essentials, why is that flashlight never where you left it? There is a flash and crack of lightning. The ground then shakes as thunder echoes throughout the house. Bella the family dog is at your heels, you pick her up as the rain starts to hammer against the windows. Wait, or is that hail? All you wanted was a peaceful night in with the family, enjoying the glorious hot dish you worked so hard on. But now you’re clutching poor Bella, who lets out a squeal of terror, no, actually you’re just holding her too tightly. The lights flicker, and you brace yourself for the inevitable blackout.

But then... nothing. The lights stay on, and you exhale with relief. The storm continues to rage outside, but inside, your Minnesota home stays cozy, bright, and filled with the aroma of that hot dish. Feeling unstoppable, you carry on, smirking with satisfaction, knowing you’ve got the power (literally) as you’re the only house on the block that’s weathered the storm.

Storage Incentive Program Details

We’re thrilled to announce the launch of Xcel Energy’s Storage Incentive Program this week! This program builds on Minnesota’s commitment to energy resiliency, following the incentives introduced in August for non-Xcel customers. As Minnesota’s largest utility provider, Xcel’s program opens the door for more residents to enhance their energy independence.

These incentives are available for battery storage systems up to 50kWh when paired with solar energy systems for homeowners and businesses (these pairings are generally called solar-plus-storage systems).

Energy storage incentives will help offset a portion of your installation expenses. Two programs will be offered with the following incentive levels:

Xcel Energy customers (administered by Xcel Energy):

$175 per kWh of energy capacity
Income qualified customers: $370 per kWh of energy capacity
The upfront incentive payment is capped at $5,000
Xcel Energy will have approximately $3,480,000 available for incentives with a carveout for low-income households.
Customers are eligible for both this storage incentive and the Solar*Rewards for Solar PV Program.
For a complete overview of the Storage Incentive Program, please refer to Xcel Energy’s Minnesota DER: Energy Storage Incentive Program Process and Details.

Outside Xcel Energy territory (administered by the Department of Commerce):

$250 per kWh up to a $7,000 maximum
Income Qualified Pilot Program $1,000 per kWh up to a $15,000 maximum ($270,000 in available program funds)
The Department of Commerce will have approximately $2,160,000 available for incentives and is additionally collaborating with the Tribal Advisory Council on Energy to develop a program specific for Tribal Nations.

Battery storage must be new and linked to an existing or pending solar Interconnection Agreement or application. The best part? Both programs complement the 30% federal solar tax credit, with potential extra incentives depending on where you live.

Benefits of a Solar + Storage System

Need more convincing on the benefits of choosing a solar-plus-storage system?

‍Around-the-clock power. If you use time-of-use billing and don't have solar, your evening electricity is likely more expensive due to the higher demand. With battery storage, you can use electricity generated during the day later on, rather than relying on the utility for power.
‍Protect your pocketbook. If your utility raises rates, a battery can help you avoid the increase by using stored, low-cost energy. You might even sell excess energy back to the grid at higher rates, adding to your savings.
‍Better monitoring. A solar-plus-storage system lets you monitor your energy generation and usage in real time, offering greater transparency and precision.
‍Boost your energy independence. While you may still need to be connected to the grid, a solar-plus-storage system gets you closer to "off the grid" living. With battery storage, you don’t have to rely on your utility most days of the year. And when the neighborhood goes dark, your house will be the one with the lights on.

It’s safe to say that these new incentive programs are sure to impact the number of solar installations in the coming year. With rising consumer demand, it’s wise to connect with a trusted installer now to secure your spot. (That’s our cue...)

Greenway is your premiere, trusted installer in the Midwest for your solar and storage needs. Certified in Tesla Solar Roof installation, we serve as the proud partner for Tesla warranty and service. Our team of industry professionals are here to help guide you with over 25 years of business experience and 10 years of solar expertise.

Find out if you qualify for this energy storage program by contacting Greenway today! Fill out our Client Inquiry form here or simply give us a call; we can’t wait to talk to you!

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Important notes:

Funds are limited for both incentive programs and will be administered on a first come, first served basis. Program was launched August 1, 2024, and will be open through June 30, 2027, or until funds are exhausted.

To find out more about Xcel Energy’s Battery Storage Incentive Program including eligibility and how to apply please see link here.

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