The Xcel Energy Solar Rewards program will be returning for 2022, but with changes to the program compared to 2021.
The utility’s Solar Rewards program is typically available all year-round, but a surge in applications at the beginning of the year tapped out its annual $10 million budget in April, just barely after the spring installation season started. The Minnesota Legislature renewed funding through 2024, with changes aimed at making the money serve more customers.
Starting in 2022, residential rebates would be reduced from 7 cents to 4 cents per kilowatt-hour. The share of money set aside for low-income customers would increase from 20% to 30% of funding going forward. Residential customers who qualify receive an upfront $2 per watt incentive, enough to pay as much as two-thirds of the cost of a solar system.
Commercial rebates would be halved from 6 cents to 3 cents. Commercial income-qualified customers would see a 50-cent-per-watt incentive.
This is the current proposal, which could change before 2022, though it's likely that this form of the program will be approved.
For Xcel Energy customers who are interested in making the switch to solar in 2022, start the process this year so you can be first in line to qualify for the rebate once it’s available. Though the change should mean more people qualify for Solar Rewards incentives, it could be disappointing to miss out if the program funding is depleted again.
Additionally, don't forget about that Federal Solar Investment Tax Credit. Next year is the last to qualify for the 26 percent credit before it decreases to 22 percent for 2023. Between Xcel Energy Solar Rewards and the federal solar tax credit, that's a lot of money that could help you pay to install solar panels.
With a solar evaluation, you can find out what rebates you could potentially qualify for and get everything prepared for maximum solar incentives. You’ll also have priority scheduling for solar installation in our calendar for Spring of 2022.
Want to know more about the Xcel Energy Solar Rewards rebate program and find out if you could qualify? Contact All Energy Solar for a free consultation.
All Energy Solar is a full-service and licensed Minnesota solar panel installer that can help to ensure you take advantage of as many programs for which you may qualify. Contact us for a free quote that can show what solar power can do for you.
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