Xcel Energy - Solar*Rewards Program

December 15, 2023


Xcel Energy offers a solar production incentive for systems 20 kW-DC or less through its Solar*Rewards program.


The customer's system capacity may not be more than 120% of the customer's on-site annual energy consumption. Participating customers must complete program forms and pay a $250 engineering fee; Xcel Energy will begin accepting online payments for the fee on or before January 1, 2017. If, prior to the completion of an engineering review, the application is denied or the customer elects not participate in the program, the customer's application fee will be refunded. 

The same PV project cannot also not a participant in the Made in Minnesota Solar PV Incentive Program coordinated by the Minnesota Department of Commerce.

Participating customers are required to own the PV system and the property/building on which the system will be installed.

Renewable Energy Credits

As a part of the Solar*Rewards contract, the customer agrees to convey all of the Renewable Energy Credits (RECs) or similar green attributes produced by the system to Xcel Energy for the ten-year term of the contract.

Net Metering

Net metering is available for Xcel Energy's customers. Under net metering net excess generation (NEG) at the end of a monthly billing period is generally credited to the next month’s bill. If a customer's NEG balance exceeds $25.00 at the end of a billing period, the customer will be issued a check for the balance by the utility. Net metering takes place using a bi-directional meter for which the customer pays a small monthly fee. The program also requires a generation meter installed at the utility's expense to measure energy (i.e., REC production) by the solar system. 

More Information

Applicants can view the Solar*Rewards Customer Contract at the link above.


Xcel has operated a small-solar incentive program called Solar*Rewards since 2010. In 2013, the Minnesota Legislature passed omnibus energy legislation that directed Xcel to operate a small-solar incentive program that provides a production-based incentive for solar energy systems up to 20 kW in size.

According to its compliance report, Xcel allocated $4.6 million for 363 solar PV projects for a projected capacity of 4.86 MW in 2014.

As of July 2023, there is no funding available for the school system and college incentive categories and those program types have been removed from the Solar*Rewards website and offerings.


Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Minnesota
Incentive Type: Performance-Based Incentive
Web Site: https://mn.my.xcelenergy.com/s/renewable/solar-rewards
Administrator: Xcel Energy
Start Date: 1/1/2014
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
Incentive Amount: Residential Systems: $0.02/kWh (10 years)
Income-Qualified Residential Systems: $0.02/kWh (10 years), plus $2.00/W up-front
Income-Qualified Non-Profit and Government: $0.015/kWh (10 years), plus $1.00/W up-front
Income-Qualified For-Profit and Multifamily: $0.015/kWh (10 years), plus $0.50/W up-front
Terms: Production incentive will be paid to the customer for 10 years
Eligible System Size: Systems 20 kW-DC or less, not to exceed 120% of the customer's on-site annual energy consumption
Equipment Requirements: PV panels and inverters must be listed on the California Energy Commissions (CEC) list.
Installation Requirements: Sign a 10-year Solar*Rewards contract.
Install a system that produces between 0.5 and 20.00kW. Systems of 20.01kW do not qualify.
Installations must be completed within 365 days of submission.
Ownership of Renewable Energy Credits: The customer agrees to convey all of the Renewable Energy Credits (RECs) or similar green attributes produced by the system to Xcel Energy for the ten-year term of the contract.


Name: H.F. 729
Date Enacted: 05/23/2013
Effective Date: 01/01/2014


Name: Customer Service
Phone: (612) 318-4785
Email: SolarProgramMN@xcelenergy.com

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.