Minnesota’s clean energy sector is maintaining steady growth despite a decrease in federal clean energy investment. 

Cathy Liebowitz, senior manager at Clean Energy Economy Minnesota, a lobbying group for the state’s clean energy transition, said federal policy changes have created uncertainty.

Liebowitz said electric vehicle incentives have ended while other incentives, such as those for geothermal, remain active.

“Here in Minnesota, our energy demand is increasing,” Liebowitz said. “To meet those needs, we either need new ways to produce energy or to be more efficient.”

Liebowitz said more than two-thirds of the state’s clean energy jobs are in energy efficiency, which often grows independently of federal and state policy.

“That tends to happen regardless of what’s happening in federal and state policy,” Liebowitz said. “Everyone is looking to make their systems more efficient. Often, that means you save money and take stress off existing programs.”

Energy demand in homes and employment is stable and increasing, but federal decisions such as The One Big Beautiful Bill are expected to raise costs. Fox 9 reported a possible estimated $2.7 billion increase in home energy bills and the loss of about 23,000 jobs in the state.

Minnesota’s clean energy workforce set a record in 2024, with the workforce expanding to nearly 64,000 workers employed across clean energy-related fields, according to Evergreen Climate Innovations.

Policy certainty is crucial for businesses in the sector, especially those investing in large solar projects or infrastructure, according to Liebowitz.

“It’s helpful for businesses to know the rules when planning their next project and talking to investors,” Liebowitz said. “Regardless of incentives, understanding the boundaries and guidance allows companies to make decisions about their projects.”

Solar power company marketing manager Kelly Kramer said Minnesotans continue to pursue solar energy even as federal incentives shift away from clean and affordable energies. 

TruNorth Solar has grown from a three-person company to a team of about 30 employees over the last 15 years, Kramer said.

“People want a more stable energy rate into the future or no energy rate into the future,” Kramer said.

Policy changes, including decreases in federal subsidies, caused a rush in demand. 

“Right after they announced it, we saw a giant influx of people who were interested in wanting to get a system installed before the end of the year,” Kramer said. 

Even without tax credits, Kramer said homeowners remain motivated by long-term savings and environmental benefits. 

“People who are interested in solar aren’t just interested because they were getting a 30% tax credit, they see the benefits of solar in Minnesota,” Kramer said.

TruNorth Solar is also active in advocacy groups to support solar-friendly policy and legislation. Kramer said customers often play a role in the company’s advocacy efforts.

“Our customers are huge supporters of solar and clean energy, and they actually make the biggest impact,” Kramer said. 

Kramer said though solar panels require upfront investment, the long-term return is significant. She added modern systems last 25 to 30 years, with payback typically after seven to nine years.

“They might have that big upfront cost or a payment if they finance their system for a handful of years, but after that, their system should produce for many, many years to come,” Kramer said. 

Minnesota has committed to producing carbon-free electricity by 2040.

Liebowitz pointed to the Sherco plant in Becker, one of the state’s largest coal facilities, which is being phased out and replaced with a solar and storage facility.

Minnesota is also exploring innovative projects, including combining solar panels with agricultural land use. 

Liebowitz said these projects demonstrate how clean energy can provide multiple benefits.

“We have a solar producer here in the state, people who can install and maintain these systems, and a nice closed loop,” Liebowitz said. “A lot of these clean energy options can stimulate local economies.”

Liebowitz said growth may slow, but employment in clean energy should remain stable due to increasing clean energy jobs.

“We’re hopeful that the workforce will stay fairly stable,” Liebowitz said.