Minnesota Solar Panels
Pricing & Installation Data

Find out if solar panels are right for your home in Minnesota.

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Solar Panels in Minnesota

The Land of 10,000 Lakes could also be a land of endless solar opportunities. Minnesota is making some serious solar moves. From the massive North Star Solar Project in North Branch to Chisago County, dubbed the "Solar Capital of Minnesota," the state is making great solar strides.

But it's not just about size; it's about policy and accessibility. Minnesota has been rocking the solar game with a renewable portfolio standard of 25% by 2025 and a net metering rule that's been in place since the '80s. With an average installation cost of $3.07 per watt and about 4 peak sun hours per day, solar isn't just eco-friendly here—it's wallet-friendly too.

While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.

Cost of Solar in Minnesota

The average price for a home solar panel system in Minnesota is $20,700 for a 6kW system or about $3.45 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.

Average Cost
6 kW System
Average Cost
10 kW System
Estimated
Tax Credit
(10 kW System)
Average
Cost/Watt
U.S.Average$18,771$31,285$9,385.50$3.13
Minnesota$18,480$30,800$9,240$3.08
U.S.Average$18,771$31,285$9,385.50$3.13
Most Costly State(Michigan)$22,680$37,800$11,340$3.78
Least Costly State(Arizona)$14,640$24,400$7,320$2.44

Costs by Solar System Size in Minnesota

For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.

I.E. Get the best bang for your buck.

System SizeSystem CostCost After Federal Tax Credit
5 kW$15,400$8,785
6 kW$18,480$10,542
7 kW$21,560$12,299
8 kW$24,640$14,056
10 kW$30,800$17,570

Pros and Cons of Solar in Minnesota

Before you jump on the solar bandwagon in Minnesota, it's essential to weigh the good with the not-so-good. We're here to give you the rundown on the most common pros and cons, but ultimately, the choice is yours to make. 

Whether you're pumped about the state's ambitious renewable portfolio standard or hesitant about the initial costs, we've got you covered. 

Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.

Minnesota Solar Pros

  • Reduce or eliminate electric bills
  • Energy independence from the grid
  • New solar systems are exempt from property and sales tax
  • Net Metering State-wide
  • Reduce your carbon footprint
  • Increase home value (4.1% on average)
  • Minnesota ranks 16th in solar in the U.S.

Minnesota Solar Cons

  • Not viable for all roofs or homes
  • Installation costs
  • Financial liability

EnergyBot's Take

Minnesota has a Renewable Portfolio Standard of 25% by 2025 and has been proactive in adopting solar-friendly policies, like raising the cap on net metering. Due to these changes, solar is a viable option for most residents.

While Minnesota may not be the sunniest state, its policies and the potential to generate a significant portion of its electricity from rooftop solar make it a strong candidate for solar adoption.

Minnesotans can expect a payback on their system between 8 to 11 years, which is great considering solar panels last an average of 20 years. 

If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.

Leasing vs Buying Solar Panels in Minnesota

Cash Purchase

The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.

Solar Loan

The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.

This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."

Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.

Solar Lease

Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.

Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:

  • Renew your lease agreement
  • Purchase the system
  • End your lease agreement

Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.

Power Purchase Agreements

A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.

For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.

Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.

Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.

Minnesota Solar Incentives

In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Some incentives are statewide and others are more local. 

Minnesota Power offers a solar rebate program based on your system's first-year estimated production, currently set at $0.083 per kWh. If you're an Xcel customer, their Solar*Rewards Program pays you on an ongoing basis for the electricity your solar panels produce, netting you about $700 annually for an average 6 kW system.

Minnesota is also offering 100% exemptions from property and sales taxes for newly-installed solar systems.

This table shows the available incentives in Minnesota. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.

Name State Category Type
Wind and Solar-Electric (PV) Systems Exemption MN Financial Incentive Property Tax Incentive
Ethanol Production Incentive MN Financial Incentive Performance-Based Incentive
Agricultural Improvement Loan Program MN Financial Incentive Loan Program
Value-Added Stock Loan Participation Program MN Financial Incentive Loan Program
Net Metering MN Regulatory Policy Net Metering
Minnesota Solar/Wind Easement Law & Local Law Options MN Regulatory Policy Solar/Wind Access Policy
Comprehensive Energy Savings Plan for State Facilities MN Regulatory Policy Energy Standards for Public Buildings
Xcel Energy Wind and Biomass Generation Mandate MN Regulatory Policy Renewables Portfolio Standard
Solar Equipment Certification Requirement MN Regulatory Policy Equipment Certification
Wind Energy Sales Tax Exemption MN Financial Incentive Sales Tax Incentive
Solar-Electric (PV) Sales Tax Exemption MN Financial Incentive Sales Tax Incentive
Non-Mandated Renewable Energy Objective MN Regulatory Policy Renewables Portfolio Standard
Solar-Electric (PV) Rebate Program MN Financial Incentive Rebate Program
Renewable Development Fund (RDF) MN Regulatory Policy Public Benefits Fund
Interconnection Standards MN Regulatory Policy Interconnection
Xcel Energy - Renewable Development Fund Grants MN Financial Incentive Grant Program
Minnesota Power - SolarSense Solar Rebate Program MN Financial Incentive Rebate Program
Home Energy Loan Program MN Financial Incentive Loan Program
Rental Energy Loan Fund MN Financial Incentive Loan Program
Great River Energy (28 Member Cooperatives) - Solar-Electric (PV) Rebate Program MN Financial Incentive Rebate Program
Owatonna Public Utilities - Solar Choice Program MN Financial Incentive Performance-Based Incentive
Rochester Public Utilities - Solar Choice Program MN Financial Incentive Performance-Based Incentive
Minnesota Power - Power Grant Program MN Financial Incentive Grant Program
Minnesota Power - Power Grant Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Minnesota Power - Energy Star Lighting and Fixture Program MN Financial Incentive Rebate Program
Minnesota Power - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Minnesota Power - HVAC Energy Efficiency Incentives Program MN Financial Incentive Rebate Program
Otter Tail Power Company - Hot Pack Energy Efficiency Program MN Financial Incentive Other Incentive
Otter Tail Power Company - Commercial & Industrial Energy Efficiency Grant Program MN Financial Incentive Grant Program
Alliant Energy Interstate Power and Light (Electric) - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Alliant Energy Interstate Power and Light (Electric) - Business Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Alliant Energy Interstate Power and Light - Farm Equipment Energy Efficiency Incentives MN Financial Incentive Rebate Program
Xcel Energy (Electric) - Business Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Xcel Energy (Electric) - Residential Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Alexandria Light and Power - Energy Efficient Water Heater Rebate Program MN Financial Incentive Rebate Program
Building Energy Code MN Regulatory Policy Building Energy Code
Alexandria Light and Power - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Alexandria Light and Power - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Anoka Municipal Utility - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Anoka Municipal Utility - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Austin Utilities (Gas and Electric) - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Austin Utilities (Gas and Electric) - Residential Conserve and Save Rebate Program MN Financial Incentive Rebate Program
City of North St. Paul Electric Utility - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Elk River Municipal Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Marshall Municipal Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
New Ulm Public Utilities - Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Owatonna Public Utilities - Residential Conserve and Save Rebate Program MN Financial Incentive Rebate Program
Owatonna Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Rochester Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Shakopee Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Shakopee Public Utilities - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Willmar Municipal Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Wright-Hennepin Cooperative Electric Association - Non-Residential Energy Efficient Rebate Program MN Financial Incentive Rebate Program
Minnesota Valley Electric Cooperative -Residential Energy Resource Conservation Loan Program MN Financial Incentive Loan Program
Minnesota Valley Electric Cooperative - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Minnesota Valley Electric Cooperative - Commercial and Industrial Grant Program MN Financial Incentive Grant Program
East Central Energy - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Dakota Electric Association - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Dakota Electric Association - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Dakota Electric Association - Commercial and Industrial Energy Conservation Loan Program MN Financial Incentive Loan Program
Dakota Electric Association - Commercial and Industrial Custom Energy Grant Program MN Financial Incentive Grant Program
Crow Wing Power - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Rental Rehabilitation Loan Program MN Financial Incentive Loan Program
Renewable Energy Standard MN Regulatory Policy Renewables Portfolio Standard
Wild Rice Electric Cooperative - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Connexus Energy - Commercial Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Stearns Electric Association - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Blooming Prairie Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Fairmont Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Fairmont Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Grand Marais PUC - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Grand Marais PUC - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Lake City Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Litchfield Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Litchfield Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Mora Municipal Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Mora Municipal Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
New Prague Utilities Commission - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
New Prague Utilities Commission - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
North Branch Municipal Water & Light - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
North Branch Municipal Water & Light - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Preston Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Preston Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Princeton PUC - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Princeton PUC - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Redwood Falls Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Redwood Falls Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Saint Peter Municipal Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Saint Peter Municipal Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Spring Valley Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Spring Valley Public Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Waseca Utilities - Commercial & Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Waseca Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Southern Minnesota Municipal Power Agency - (17 Municipal Utilities) - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Community-Based Energy Development (C-BED) Tariff MN Regulatory Policy Other Policy
Minnesota - Design Requirements for State Funded Buildings MN Regulatory Policy Energy Standards for Public Buildings
Rural Wind Energy Revolving Loan MN Financial Incentive Loan Program
Methane Digester Loan Program MN Financial Incentive Loan Program
Rochester Public Utilities - Residential Conserve and Save Rebate MN Financial Incentive Rebate Program
Minnesota Energy Loan MN Financial Incentive Loan Program
Solar Hot Water Rebate Program MN Financial Incentive Rebate Program
Renewable Energy Equipment Grant MN Financial Incentive Grant Program
Minnesota Power - Residential New Construction Rebate Program MN Financial Incentive Rebate Program
Minnesota Energy Resources (Gas) - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Great River Energy (28 Member Cooperatives) - Energy Wise Residential Efficiency Rebates MN Financial Incentive Rebate Program
Hutchinson Utilities Commission - Commercial Energy Efficiency Program MN Financial Incentive Rebate Program
Hutchinson Utilities Commission - Residential Energy Efficiency Program MN Financial Incentive Rebate Program
CenterPoint Energy (Gas) - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Great River Energy - Commercial Loan Program MN Financial Incentive Loan Program
Farm Opportunities Loan Program MN Financial Incentive Loan Program
Connexus Energy - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Anoka Municipal Utility - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
East Central Energy - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Elk River Municipal Utilities - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Stearns Electric Association - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Stearns Electric Association - Energy Efficiency Loan Program MN Financial Incentive Loan Program
Wright-Hennepin Cooperative Electric Association - Energy Efficiency Loan Program MN Financial Incentive Loan Program
Wild Rice Electric Cooperative - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Lake Region Electric Cooperative - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Lake Region Electric Cooperative - Agriculture and Commercial Energy Efficiency Grant Program MN Financial Incentive Grant Program
Solar Energy Legacy Grants for Local Governments MN Financial Incentive Grant Program
CenterPoint Energy (Gas) - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Xcel Energy - Solar*Rewards Program and MN Made PV Rebate Program MN Financial Incentive Rebate Program
Residential Geothermal Heat Pump Rebate Program MN Financial Incentive Rebate Program
Solar Space Heating Rebate Program MN Financial Incentive Rebate Program
Local Option - Energy Improvement Financing Programs MN Financial Incentive PACE Financing
Residential Small Wind Rebate Program MN Financial Incentive Rebate Program
Rochester Public Utilities - Solar Rebate Program MN Financial Incentive Rebate Program
Austin Utilities - Solar Rebate Program MN Financial Incentive Rebate Program
Owatanna Public Utilities - Solar Rebate Program MN Financial Incentive Rebate Program
Fix-Up Loan MN Financial Incentive Loan Program
MHFA Energy Saver Rebates Powered by the Fix-up Fund MN Financial Incentive Rebate Program
Minnesota Power - Solar-Thermal Water Heating Rebate Program MN Financial Incentive Rebate Program
Commercial Small Wind Rebate Program MN Financial Incentive Rebate Program
Energy Efficiency Resource Standard MN Regulatory Policy Energy Efficiency Resource Standard
Otter Tail Power Company - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Duluth Comfort Systems - Residential Energy Efficiency Loan Program MN Financial Incentive Loan Program
MMPA - Commercial and Industrial Energy Efficiency Program MN Financial Incentive Rebate Program
MMPA - Residential Energy Efficiency Program MN Financial Incentive Rebate Program
Minnesota Energy Resources (Gas) - Low-Income New Construction Rebates MN Financial Incentive Rebate Program
Minnesota Xcel Energy - Business Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Xcel Energy (Electric and Gas) - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Xcel Energy (Gas) - Residential Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Alliant Energy Interstate Power and Light (Gas) - Residential Energy Efficiency Program MN Financial Incentive Rebate Program
Alliant Energy - Low-Interest Energy Efficiency Loan Program MN Financial Incentive Loan Program
Northern Municipal Power Agency - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Northern Municipal Power Agency - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Marshall Municipal Utilities - Solar Thermal Water Heater Rebate Program MN Financial Incentive Rebate Program
Alliant Energy Interstate Power and Light (Gas) - Business Energy Efficiency Rebate Programs MN Financial Incentive Rebate Program
Bioenergy Grant Program MN Financial Incentive Grant Program
Brainerd Public Utilities - Renewable Incentives Program MN Financial Incentive Rebate Program
Moorhead Public Service Utility - Renewable Energy Incentive MN Financial Incentive Rebate Program
Missouri River Energy Services (25 Member Cooperatives) - Business Energy Efficiency Rebate MN Financial Incentive Rebate Program
Missouri River Energy Services (25 Member Cooperatives) - Residential Energy Efficiency Rebate MN Financial Incentive Rebate Program
Minnesota Energy Resources (Gas) - Commercial and Industrial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
New Ulm Public Utilities - Solar Electric Rebate Program MN Financial Incentive Rebate Program
Xcel Energy - Solar*Rewards Program MN Financial Incentive Performance-Based Incentive
Made in Minnesota Solar PV Incentive Program MN Financial Incentive Performance-Based Incentive
Made in Minnesota Solar Thermal Rebate MN Financial Incentive Rebate Program
Value of Solar Tariff MN Regulatory Policy Net Metering
Minnkota Power Cooperative (11 Utilities) - PowerSavers Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Value of Solar Tariff MN Regulatory Policy Value of Solar Tariff
Steele-Waseca Cooperative Electric - The Sunna Project MN Financial Incentive Grant Program
Rural Minnesota Energy Board PACE Program MN Financial Incentive PACE Financing
Saint Paul Port Authority PACE Program MN Financial Incentive PACE Financing
Rural Minnesota Energy Board PACE Program MN Financial Incentive PACE Financing
Made in Minnesota Solar PV Incentive Program MN Financial Incentive Performance-Based Incentive
City of Minneapolis - Solar Access and Easement Laws MN Regulatory Policy Solar/Wind Access Policy
Dakota Electric Association - Residential Energy Efficiency Loan Program MN Financial Incentive Loan Program
Willmar Municipal Utilities - Commercial Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Connexus Energy - Residential Energy Efficiency Rebate Program MN Financial Incentive Loan Program
Minnesota Energy Resources (Gas) - New Construction Rebates MN Financial Incentive Rebate Program
Brainerd Public Utilities - Residential Energy Efficiency Rebate Program MN Financial Incentive Rebate Program
Minnesota Power - Business Rebates & Savings MN Financial Incentive Rebate Program
E-ZPass Minnesota Electric Vehicle Incentive MN Financial Incentive Other Incentive
Connexus Energy - Electric Vehicle Incentive Program MN Financial Incentive Rebate Program
Lake Region Electric Cooperative - ChargeWise Program MN Financial Incentive Rebate Program
Otter Tail Power - EVSE Rebate Program MN Financial Incentive Rebate Program
Runestone Electric Association - EVSE Rebate Program MN Financial Incentive Rebate Program
Community Solar Gardens MN Regulatory Policy Community Solar Rules
Minnkota Power Cooperative - PowerSaves Residential Rebate Program MN Financial Incentive Rebate Program
Solar for Schools Program MN Financial Incentive Grant Program
Solar Grant Program: Public Buildings MN Financial Incentive Grant Program
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment US Financial Incentive Loan Program
Conservation Security Program (CSP) Production Incentive US Financial Incentive Performance-Based Incentive
Business Energy Investment Tax Credit (ITC) US Financial Incentive Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol US Financial Incentive Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS) US Financial Incentive Corporate Depreciation
Energy Star Financing and Mortgages US Financial Incentive Loan Program
USDA Rural Housing Service Loans US Financial Incentive Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate) US Financial Incentive Corporate Tax Exemption
Renewable Energy Production Incentive (REPI) US Financial Incentive Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC) US Financial Incentive Corporate Tax Credit
Small Business Administration Loan Programs US Financial Incentive Loan Program
Energy-Efficient Mortgages US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Grants US Financial Incentive Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities US Financial Incentive Grant Program
Green Power Purchasing Goal for Federal Government US Regulatory Policy Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction US Financial Incentive Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders US Financial Incentive Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit US Financial Incentive Industry Recruitment/Support
Residential Energy Efficiency Tax Credit US Financial Incentive Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans US Financial Incentive Loan Program
Federal Appliance Standards US Regulatory Policy Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies US Regulatory Policy Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs) US Financial Incentive Loan Program
Qualified Energy Conservation Bonds (QECBs) US Financial Incentive Loan Program
U.S. Department of Treasury - Renewable Energy Grants US Financial Incentive Grant Program
USDA - High Energy Cost Grant Program US Financial Incentive Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program US Financial Incentive Loan Program
USDA - Repowering Assistance Biorefinery Program US Financial Incentive Grant Program
Title I Property Improvement Loans US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program US Financial Incentive Grant Program
Low Income Home Energy Assistance Program (LIHEAP) US Financial Incentive Grant Program
Weatherization Assistance Program (WAP) US Financial Incentive Grant Program
Fannie Mae Green Financing – Loan Program US Financial Incentive Loan Program
Qualified Commercial Clean Vehicle Tax Credit US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate) US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal) US Financial Incentive Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit US Financial Incentive Personal Tax Credit
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment US Financial Incentive Loan Program
Conservation Security Program (CSP) Production Incentive US Financial Incentive Performance-Based Incentive
Business Energy Investment Tax Credit (ITC) US Financial Incentive Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol US Financial Incentive Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS) US Financial Incentive Corporate Depreciation
Energy Star Financing and Mortgages US Financial Incentive Loan Program
USDA Rural Housing Service Loans US Financial Incentive Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate) US Financial Incentive Corporate Tax Exemption
Renewable Energy Production Incentive (REPI) US Financial Incentive Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC) US Financial Incentive Corporate Tax Credit
Small Business Administration Loan Programs US Financial Incentive Loan Program
Energy-Efficient Mortgages US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Grants US Financial Incentive Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities US Financial Incentive Grant Program
Green Power Purchasing Goal for Federal Government US Regulatory Policy Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction US Financial Incentive Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders US Financial Incentive Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit US Financial Incentive Industry Recruitment/Support
Residential Energy Efficiency Tax Credit US Financial Incentive Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans US Financial Incentive Loan Program
Federal Appliance Standards US Regulatory Policy Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies US Regulatory Policy Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs) US Financial Incentive Loan Program
Qualified Energy Conservation Bonds (QECBs) US Financial Incentive Loan Program
U.S. Department of Treasury - Renewable Energy Grants US Financial Incentive Grant Program
USDA - High Energy Cost Grant Program US Financial Incentive Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program US Financial Incentive Loan Program
USDA - Repowering Assistance Biorefinery Program US Financial Incentive Grant Program
Title I Property Improvement Loans US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program US Financial Incentive Grant Program
Low Income Home Energy Assistance Program (LIHEAP) US Financial Incentive Grant Program
Weatherization Assistance Program (WAP) US Financial Incentive Grant Program
Fannie Mae Green Financing – Loan Program US Financial Incentive Loan Program
Qualified Commercial Clean Vehicle Tax Credit US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate) US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal) US Financial Incentive Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit US Financial Incentive Personal Tax Credit

Minnesota Solar Rebates: Minnesota Power offers a solar rebate program based on your first-year estimated production, with the current incentive at $0.083 per kilowatt-hour (kWh). Xcel's Solar*Rewards Program pays on an ongoing basis for the amount of kWh produced with solar panels, offering about $700 annually for an average-sized 6kW system.

Xcel's Low-Income Solar Program: Income-qualified Xcel customers can get a $2,000 per kilowatt solar rebate, amounting to $12,000 for an average-sized 6kW system. 

Tax Exemptions: A newly-installed solar power system is 100% exempt from associated property taxes and sales tax in Minnesota.

Minnesota Solar Companies

There are hundreds of solar companies in Minnesota. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.

To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.

The solar companies we partner with:

  • Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
  • EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
  • Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.

We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.

Before You Install Solar Panels

Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.

  • What are the long-term savings and payback period for installing a solar panel system?
  • How will installing solar panels impact my home's value?
  • What is the system’s Return on Investment (ROI)?
  • Are there any specific design or aesthetic considerations for solar panel installation?
  • How do I weigh the environmental benefits against the costs of installation?
  • What are the specific terms and conditions for the installer?

Excellent Equitable and Efficient Energy 

Minnesota’s Community Solar Program, at one time the largest in the country, received a new law that significantly overhauls the state's decade-old program. While trying to make energy accessibility more equitable and efficient it has faced challenges like grid congestion and interconnection delays. 

The law (HF 2310) aims to make the program more equitable and efficient. Previously, a restriction required that subscribers had to be located in the same or an adjacent county to the solar project, causing a rush of permits around the Twin Cities. The new law eliminates this, allowing projects to serve a broader range of customers. 

The size cap for individual projects has been increased from 1 to 5 megawatts, which will enable developers to serve more customers with each interconnection application. This is expected to help clear the backlog of projects waiting for interconnection. The law also replaces the state's "value of solar" formula for determining developer payments. Starting in 2024, projects will have tiered compensation rates: low- to moderate-income customers and "public interest" customers like schools and nonprofits will be credited at the full retail rate. Other residential customers will get 85% of retail, and commercial customers will get 70%. 

Solar developers are optimistic about these changes. Jeff Lee, director of development at Nautilus Solar Energy, believes the law will make projects viable in less densely populated areas, helping to solve interconnection issues. David Shaffer from Novel Energy Solutions said the law makes projects that were previously borderline now completely possible. The law also mandates that solar developers must pay prevailing wages on community solar projects and prohibits the requirement of subscriber credit scores, making the program more accessible.

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We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.

Now using the same one-of-kind technology and platform we are helping consumers in Minnesota decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.

We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.

Minnesota Solar FAQs

The cost of solar panel installation in Minnesota can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.

A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Minnesota is $20,700 for a 6kW system or about or about $3.45 per watt.

The number of solar panels you would need depends on a variety of factors such as:

  1. Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
  2. The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
  3. The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
  4. The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.

To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.

  • Lower Electricity Bills:
    Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
  • Environmental Benefits:
    Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
  • Increased Home Value:
    Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
  • Long-Term Savings:
    While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.
  • Location:
    Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
  • Roof Orientation:
    Ideally, your roof should be facing south to get the most sunlight throughout the day.
  • Roof Condition:
    Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.

The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.

Your installer should be able to give you an estimated timeline based on your specific project.

Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.

When designing a solar system, there are several key factors to consider. You'll want to start by assessing your energy needs to determine the system size that will cover your consumption. Location matters, too—think about the angle and orientation of your roof, as well as any potential obstructions like trees or buildings that could block sunlight. 

Don't forget to consider local climate conditions, as they'll impact your system's efficiency. 

Finally, make sure to explore available incentives, rebates, and financing options to maximize your investment. It's a good idea to consult with professionals to tailor the system to your specific needs and local regulations.

There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home. 

Do I need a permit for solar?

Getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction. 

Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees. 

If you're working with a solar installation company, they often handle the permitting process for you.

Minneapolis

Solar Energy Checklist

Saint Paul

Solar Energy Checklist

Rochester

Applying for a Building Permit

Bloomington

Solar Energy Checklist