MINNEAPOLIS (Feb. 1, 2023) – Xcel Energy aims to save Minnesota customers over $1.4 billion in costs over the next 10 years and accelerate the transition to clean energy through provisions in the federal Inflation Reduction Act. Savings on projects in wind, solar, energy storage, electric vehicle chargers and more will help the company reach its goal of reducing carbon emissions from electricity 85% by 2030 in Minnesota.

Xcel Energy outlined how it intends to leverage new and extended tax credits and grant programs in the IRA to pass savings on to customers in a filing to the Minnesota Public Utilities Commission on Monday. The company estimates $490 million in incremental savings for existing projects through 2027 and an estimated $1 billion in additional savings for new projects through 2034 under the IRA. Many of the anticipated savings were made possible by the PUC’s recent approval of the company’s 2020-2034 Upper Midwest Energy Plan.

“Our investments to date in wind energy — a power source that carries no fuel cost — have already saved our customers money, lowering costs in the Upper Midwest by nearly $1 billion from 2017 to 2021,” said Chris Clark, president, Xcel Energy–Minnesota, North Dakota and South Dakota. “The Inflation Reduction Act opens up opportunities for us to build upon that progress with additional cost savings that we can pass on directly to our customers. At the same time, the IRA will support our ongoing investments toward a future of 100% carbon-free electricity.”

Tax credits included in the IRA will drive innovation and reduce the cost of major energy generation and energy storage projects, helping Xcel Energy meet its clean energy and carbon goals more efficiently and economically. Xcel Energy will be able to sell its unused renewable energy production tax credits to other organizations, reducing its costs to customers.

Examples of the benefits Xcel Energy plans to bring customers through the IRA include:

  • An estimated 30% customer savings on the 460-megawatt Sherco Solar project, which will be built near the existing Sherco coal plant in Becker as that plant retires.
  • Savings on Xcel Energy pilot projects to develop long-duration energy storage through battery technologies and hydrogen.
  • Tax credit support for projects like the Resilient Minneapolis Project, which seeks to install solar and battery microgrids in three community center locations to improve resilience in communities of color during power outages.
  • Tax credits of up to $100,000 per electric vehicle charger to lower the costs of new charging stations that help to build a robust and reliable electric vehicle charging network for Minnesota.
  • Tax credits for commercial vehicles that will allow Xcel Energy to continue electrifying its own fleet while building partnerships with other organizations to accelerate the transition toward electric vehicles.
  • Promoting equity in the workforce by increasing opportunities for the participation of women and people of color to work on projects like Sherco Solar and later transition into energy careers.
  • Improving programming for underserved or marginalized communities by increasing access to affordable clean energy through various tax credits, rebates, and grants.

Learn more about Xcel Energy’s clean energy plans.

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.