Minnesota Department of Commerce – Battery Energy Storage Incentives
Minnesota Tribal Entities are Eligible to Apply for up to $7,000
DEADLINE
Rolling until funds are fully distributed or June 30, 2027
EXPECTED PROJECT START DATE OR AWARD NOTIFICATIONS EXPECTED
Rolling / first-come, first-served; no fixed award notification date.
TYPE OF PROGRAM
State of Minnesota offers incentives for new on-site battery energy storage systems up to 50 kWh that are paired with solar. Projects outside Xcel Energy territory are administered by the Minnesota Department of Commerce, while projects within Xcel territory are administered by Xcel Energy. Funding is limited and provided on a first-come, first-served basis.
FUNDING DETAILS
Outside Xcel Territory: $1,422,775 available
Within Xcel Territory: $3,480,000 available
Expected number of awards:
Outside Xcel Territory: $250/kWh, up to $7,000 per project
Within Xcel Territory: $175/kWh; income-qualified customers receive $370/kWh. Incentives are capped at $5,000 per storage system.
PROJECT GOALS
Reduce battery storage installation costs, expand access to stored solar energy. Incentives are energy resilience, and support greater use of solar-plus storage systems in Minnesota.
WHAT CAN YOU USE IT FOR?
Installing a new battery energy storage system paired with new or existing on-site solar
Storing solar energy for later use
Providing backup power and improving resilience during power outages
Reducing electricity use during periods of peak demand
Supporting extended energy storage and eligible grid-related uses
IMPORTANT LIMITATIONS AND REQUIREMENTS:
Outside Xcel Territory: Minnesota projects outside Xcel territory; new batteries ≤50 kWh, permanently installed, grid-connected, behind-the-meter, and paired with on-site solar. One incentive per property; battery owner must be the payee. Interconnection is required before payment. Tribal set-aside funding available.
Within Xcel Territory: New batteries ≤50 kWh, paired with on-site solar; existing systems are ineligible.
Not Eligible: Thermal storage, EV batteries, and community solar.
COST SHARE:
None
Ready to empower your Tribe’s energy future?
