Minnesota State Solar Overview
The Minnesota solar market is driven by a strong community solar program, utility procurement, and a renewable energy standard that supports steady growth. Community solar gardens have been a major driver of deployment, especially in the non-residential and distributed generation segments. The state has installed about 3.3 GW of solar, providing roughly 5.9% of its electricity and powering over 460,000 homes.
The market is expected to continue expanding, with another 3.3 GW projected over the next five years. Growth is supported by continued policy momentum and demand for distributed solar, though residential adoption remains lower than in leading rooftop markets.
Policy Priorities
SEIA and our trade allies continue to push back on Xcel’s recently-approved “Capacity Connect” program, in which the utility would develop, own and operate up to 200 MW of distributed battery storage at a cost of $430 million. Unlike successful distributed generation storage programs in other states (e.g. Colorado), this program runs the risk of exposing ratepayers to time and cost overruns. SEIA supports utility investment in distributed storage in a way that rewards competitive projects to keep prices low — provided that utilities fairly participate in the market according to the same interconnection standards as 3rd party storage developers.
SEIA supports the passage of legislation enabling Virtual Power Plant (VPP) programs, in which distributed solar and storage could provide much needed, low-cost energy and capacity for the grid while creating savings for customers. In addition, SEIA supports the establishment of an energy storage procurement standard for Minnesota
Minnesota Major Solar and Storage Projects
SEIA’s Major Solar Projects List is a database of all U.S. ground-mounted solar projects, 1 MW and above, that are either operating, under construction or under development.
Official SEIA State Affiliate
Just The Facts
- Solar Capacity:
3,264 MWdc
- Storage Capacity
51 MWh
- National Solar Ranking:
20th (21st in 2025 additions)
- Enough Solar Installed to Power:
464,162 homes
- Percentage of State's Electricity from Solar:
5.93%
- Solar Jobs:
4,793
- Solar and Storage Companies in State:
172 (37 Manufacturers, 57 Installers/Developers, 78 Others)
- Total Solar Investment in State:
$5.1 billion
- Growth Projection and Ranking:
3,297 MW over the next 5 years (ranks 19th)
- Number of Solar Installations:
27,358
Minnesota State Solar Policy Resources
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Department of Commerce – Find a wide variety of information on state government energy programs, policy, projects, energy-saving strategies and energy-related statistics
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DSIRE incentives database – Minnesota – Search a public clearinghouse for specific solar energy incentives in Minnesota and across the United States
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Minnesota Solar Panels Overview – Learn about the history of solar policy in Minnesota, along with up-to-date pricing information on EnergySage
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Public Utilities Commission – Learn about the governing body that regulates the electricity rates and services of Minnesota public utilities
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Solar Panel Cost in Minnesota – Learn about the history of solar policy in Minnesota, along with up-to-date pricing information on EnergySage
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Solar Rebates & Incentives in Minnesota – Check out EnergySage’s list of key solar incentives in Minnesota to see what programs you can benefit from
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State Legislature – Track pending legislation affecting solar energy, locate and contact individual legislators, and stay up to date on current legislative issues in Minnesota
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U.S. Energy Information Administration – Minnesota State Profile – Explore official energy statistics, including data on electricity supply and demand, from the U.S. government
Minnesota Energy Storage Policy and Market Overview
Minnesota is taking steps to advance energy storage deployment through coordinated action from regulators and utilities, supporting both front of the meter and behind the meter systems to improve grid reliability and reduce costs.
Policy frameworks require utilities to incorporate storage into integrated resource planning, improving transparency and long-term deployment pathways.
Incentives and utility programs, including those developed with Xcel Energy, are supporting solar-plus-storage and energy equity initiatives. As Minnesota continues to expand its clean energy portfolio, these policies and programs are expected to drive continued storage growth.
Minnesota Energy Storage Policy Resources
- Minnesota Energy Storage Capacity Report –Report evaluating energy storage, market environment, deployment status, and policy recommendations.
- Minnesota Energy Storage Incentives – Upfront solar-plus-storage incentives offered by the Minnesota Commerce Department.
- Battery Energy Storage Systems Property Tax Treatment – Rules, and example scenarios on the taxability of battery storage in Minnesota.
- Xcel Renewable Battery Connect – Battery storage incentives for homeowners offered to Xcel utility customers.
- Minnesota SEIA –SEIA’s state regional affiliate focusing on renewable energy and energy storage advocacy, legislation, and research.
- DSIRE Minnesota Energy Storage Policy Database – Clearinghouse for financial incentives, regulations, and rebates for energy storage and lithium-ion technologies in Minnesota and across the United States.
- Energy Storage Cost in Minnesota – Up-to-date storage and solar-plus-storage pricing and find installers in Minnesota on EnergySage.
- Minnesota Public Utilities Commission – Governing body that regulates the electricity rates and services of Minnesota public utilities, search for regulatory dockets, programs, and initiatives.
- Minnesota Legislature – Pending, passed, and historical legislation affecting energy storage and battery systems, locate and contact individual legislators, and stay up to date on current legislative issues in Minnesota.
Data References
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