Fact Sheet: Minnesota Solar Energy Tax Revenue

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Solar energy development brings numerous economic benefits to the counties and local communities in which it occurs. This includes direct payments to landowners who host solar arrays and new employment opportunities during the construction and operation of a project. In addition, installations provide new tax revenue streams to rural communities, which help to pay for local emergency services and infrastructure improvements. This fact sheet provides a breakdown of the Solar Energy Production Tax paid by owners of solar energy installations in Minnesota. 

In 2013, Minnesota set a goal of increasing the percentage of electricity retail sales from solar to 10% by 2030. Since then, solar electricity generation in the state has noticeably increased. In 2021, Minnesota had 1,235.6 megawatts (MW) of installed solar capacity, providing 3.66% of the state’s electricity.