Solar Space Heating Rebate Program

The Minnesota Office of Energy Security (OES) offers rebates for single family residential, multi-family residential and small business solar air heating systems installed within the state. Small businesses are defined as having 20 or fewer full-time equivalent (FTE) employees. Systems may be designed and used to provide supplemental hot water heating during the summer months, but the primary purpose must be space heating. Systems that integrate solar water heating into a hot tub or pool are not eligible for rebates. The OES requires that all participating residences be properly air-sealed as a prerequisite for receiving a program incentive. A comprehensive professional energy audit is recommended, but only air sealing is required. Rebate Structure The general rebate level is set at $25 per square foot of net aperture, as measured by the Solar Rating and Certification Corporation (SRCC). Below is a listing of the limitations set on each category of rebate: Single Family Residential: lesser of 25% of system cost or $2,000 Multi-Family Residential (2-3 units): lesser of 25% of system cost or $4,000 Small Businesses and Qualifying Multi-Family Residential (4+ units): lesser of 25% of system cost or $25,000 Rebate amounts may not exceed the total cost of the system minus federal, utility, or other incentives. Qualification The program has numerous equipment, warranty, and installation requirements for rebated systems (some detailed above). Home-built systems are not eligible for rebates. All systems must be installed by a Minnesota licensed contractor with at least $50,000 in liability insurance; self-installed systems are not eligible under this program. The OES has the right to inspect and monitor systems to make sure they meet rebate guidelines. In addition, the OES may monitor household energy use before and after system installation in order to evaluate program energy savings. Funding The program will cease accepting applications when funding is exhausted. Participants must complete several preliminary steps before applying for a rebate. The application must be approved prior to any installation work in order to remain eligible for a rebate and systems must be installed within nine months of the receipt of rebate confirmation. It is important to note that because the current program is funded by the American Recovery and Reinvestment Act (ARRA), participants may be subject to additional terms and conditions governing the use of ARRA funds.

The program website and application contain step-by-step instructions on how residents should proceed with installing a rebated system under the program rules.