Find out if solar panels are right for your home 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.
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 |
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 Size | System Cost | Cost 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 |
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 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.
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.
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.
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:
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.
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.
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 |
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.
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:
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.
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.
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.
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.
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:
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.
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.
Applying for a Building Permit
