Thanks to fair prices,
and exceptional financing options.
How much does solar cost?
Less than you’re paying now.
Affordable solar has arrived! The average Minnesota homeowner will end up paying the electric company more than $45,000 over the next 30 years for electricity that could be generated by a solar system that costs just $25,000.
And after rebates and credits, you could pay only $13,900 for $45,000 worth of electricity. Best of all, solar will increase your property value, so it will take less than 18 months after installation to recoup the value in savings and assets. (Without increasing property taxes!) Affordable solar arrays for most farms and commercial outfits pay for themselves in under 7 years.
The only question is: What will you do with an extra $30,000?
Paying for solar
All solar installations–residential, agricultural, commercial, whatever–automatically qualify for a 30% federal tax credit.
Assuming that you are currently paying taxes on income or assets, installing a $30,000 system will get you a $9,000 credit the following April.
Sage Advice: If you are financing your system, we heartily encourage you to put this money toward your loan so that you can benefit from lower interest payments.
Because your solar array will help the utility meet its renewable energy requirements, some utilities offer rebates.
Rochester, Owatonna and Austin Public Utilities all offer up to $5,000 at $.50/watt. (Solar arrays are measured in watts.) The average installation would qualify for $3,600 in rebates.
But Xcel customers really get to cash in with a 10-year production rebate (meaning you are paid based on how much you produce) of $.08/kWh. That adds up to about $1,000 each year for ten years. Look for your check each April.
Rural farms and businesses can apply for the Rural Energy for America Program, which will pay for up to 25% of the cost of the system. (Because we believe in making your life simple, we’ll line up a grant writer for you.)
Our exclusive partnership with Home Federal of Rochester gives you access to the best financing package you will find anywhere.
The 10-year loan will cover the full cost of your affordable solar installation, and opens with a 2.99% interest rate for the first two years (as well as interest-only payments, if you want them.)
The rate for the remainder of the loan depends on your financial situation, and can be as low as Prime Rate (the lowest rate money can be lent commercially, as determined by the Federal Reserve), which is currently 3.75%.
Sage Advice: Be sure to talk to your tax accountant about the interest on your solar purchase. Many people are able to deduct it.
Solar Connection is also a qualified PACE (Property Assessed Clean Energy) installer, which means that our farm and business clients (even home-based businesses) can qualify for non-debt payment programs for the total cost of their projects. The first payment comes due after 6 to 18 months, which means that farm or business solar systems will be cash flow positive from Day 1.