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ST. PAUL, Minn. — The Minnesota Department of Commerce has just over $1.4 million remaining in state incentives for residents looking to add battery storage to their solar energy systems.
The Energy Storage Incentive Program provides $250 per kilowatt-hour of battery capacity, up to $7,000, according to a press release. Funding is limited and available on a first-come, first-served basis for eligible customers outside Xcel Energy’s service territory.
Battery storage allows homeowners and businesses to store electricity produced by solar panels and use it later, including when the sun isn’t shining. By storing more of the solar energy they produce for later use, customers may be able to further reduce their electric bills and provide low-cost clean energy to the overall power system when it is needed most.
If a battery storage unit is coupled with the appropriate energy management system, storage units can be equipped to provide power during outages.
“Battery storage can give families and businesses another layer of resilience by allowing them to save some of the energy their solar panels produce for when they need it,” said Minnesota Department of Commerce Temporary Commissioner Julia Dreier. “We know these systems can be a significant investment, and this program can help make that option more accessible to Minnesotans who decide it’s right for them.”
The incentive is available to qualifying Minnesotans, including homeowners, businesses, government entities and schools, served by electric utilities outside Xcel Energy’s territory. Battery systems must be paired with solar and may not exceed 50 kilowatt-hours of capacity.
Minnesotans who already have solar can explore adding battery storage, while those considering a new solar installation can consider installing solar and storage together. Commerce has provided more than $600,000 in incentives to Minnesotans through its Energy Storage Incentive Program since 2024.
Battery storage can store solar energy for later use, provide backup power during outages and lower energy bills. Depending on a customer’s utility, solar and storage systems can be combined with utility programs that reimburse customers for peak shaving or with time of use rates that reward them for deploying their onsite storage when the system needs it most.
Battery systems remain a significant investment, even with an incentive. Commerce encourages Minnesotans to consider their individual energy needs and goals and talk with a qualified installer about whether battery storage makes sense for them.
“These incentives are one way we can help more families and businesses decide whether storage makes sense for them,” said Assistant Commissioner Lissa Pawlisch.
Minnesotans interested in the program should first determine which electric utility serves their property. Those outside Xcel Energy’s service territory should talk with a few qualified solar or battery installers about system options to help determine whether a battery system meets their energy needs and goals.
Customers should also check with their electric utility to see whether additional battery storage rebates or rate programs are available. Customers within Xcel Energy’s service territory are covered by a separate battery storage incentive program administered through Xcel Energy.
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