Published April 27, 2010

Minnesota's Office of Energy Security is advising consumers that money allotted for some solar incentives has run out.

"Rebate funds for solar electric systems are now fully reserved," the energy office said in an email Tuesday. "Applications for the waiting list will be accepted for a short time. This applies to both residential and small businesses."

Minnesota's residential program provided rebates for systems between 0.5 and 5 kilowatts of rated capacity. The small-business program offered rebates for systems sized between 0.5 and 10 kilowatts.

The combination of the state rebate, a federal tax credit that covers 30 percent of the post-rebate cost of a system, and an incentive offered by Xcel Energy for customers in its service area proved attractive for many consumers. Some property owners with ideal locations for arrays were able to secure a long-term bargain price for electricity.

Xcel Energy still is offering a solar rebate in its service area that, combined with the federal tax credit, still may make solar PV attractive. The company's rebate of $2.25 per watt applies to systems ranging from 0.5 to 40 kilowatts in production capacity.

Minnesota Power, another utility, also offers a residential solar incentive program that is most cost-effective for small systems with capacity ratings of 0.5 to 2 kilowatts.

Rebate funds for solar hot-water heating and solar air-heating systems are still available.

More information about solar rebates and other incentives available in Minnesota (and in every other state) is available from the federally funded Database of State Incentives for Renewables and Efficiency, or DSIRE.  Consumers also can get specific, detailed rebate information from the websites of  Xcel Energy, Minnesota Power and the Minnesota Office of Energy Security.