Cost Of Solar Panels In Minnesota

How much do solar panels cost in Minnesota?

Installing solar panels on your home can cost anywhere from $10,000 to $30,000 or more, although individual costs vary. On average, Minnesota residents pay $22,720 for their system before tax credits.

The size of your system can have a big impact on the total amount you pay. Surprisingly, the smaller your system, the less you pay. The average size of a solar system in Minnesota is 8 kW.

Average Solar Panel Cost by System Size in Minnesota

	5kW	6kW	7kW	8kW	9kW	10kW	11kW
Before the federal tax credit	$14,200	$17,040	$19,880	$22,720	$25,560	$28,400	$31,240
After the federal tax credit	$9,940	$11,928	$13,916	$15,904	$17,892	$19,880	$21,868
Estimated house size	1,400 m2	1,600 m2	1,800 m2	2,000 sqm	2,200 m2	2,400 m2	2,600 m2

Source: Ecowatch

Are solar panels worth it in Minnesota?

As energy costs continue to rise and climate change becomes a larger concern, many homeowners are considering installing solar panels. However, whether switching to solar energy is worth it depends on your current energy consumption and the solar company you hire.

One solar customer we spoke with, Greg from Cottage Grove, had trouble connecting his system to his local utility but says it was the right choice.

“Without these essential utility workers, this experience would have exceeded my expectations,” he said. “To say the wait was long would be an understatement. »

Solar panels typically last 25 years.

Working with your utility on net metering agreements and permits may extend your solar panel installation time. This bureaucracy seems to be Greg's biggest frustration, not the solar panels themselves.

Eric from Eden Prairie, on the other hand, had a smooth installation process and saw great value in specifically adding a battery to his solar panel system: “Installing and activating the PowerWall with our solar panels is a great experience.” Use the same app to compare production and costs.

The ability to store solar energy in a battery for use when the sun is not shining, such as at night or on cloudy days, provides year-round benefits to solar panel owners in Minnesota.

For Eric and his growing home in Minnesota, solar power brings environmental and economic benefits that outweigh the growing pains.

Whether purchasing a solar power system is worth it depends on your tolerance for initial logistical problems, your ability to integrate battery storage, and calculation of long-term financial gains. Government tax credits and rebates, ever-improving technology and falling panel prices make switching to solar energy a smart decision for most.

“Still not convinced? The Advantages and Disadvantages of Solar Energy.”

Cost factors for switching to solar energy in Minnesota

In Minnesota, as in other states, the cost of your solar system depends on the equipment you choose and the performance of your system. Higher quality panels, optional equipment, permits and more increase costs.

Costs for solar systems

The price of the equipment depends on the quality of the equipment and the company you buy it from. Solar panels are typically priced per watt. In Minnesota, the average cost per watt is $3.29. Here are some average costs you can expect for other devices:

»Compare: The most efficient solar modules

Your system size

With some quick calculations you can determine the system size you need. First, determine how much electricity you used in kilowatt hours (kWh) last year. You can get this information through your online electricity bill panel.

Divide your annual kWh by 1,200 to find the metering system you need. For example, a typical home in Minnesota uses 9,312 kWh per year. Using this formula, a typical home would require an 8kW system.

"What is the difference? Kilowatts and kilowatt hours

The condition of your roof

High-quality solar panels should have a lifespan of 25 to 30 years, so your roof should last longer. Otherwise, you will have to pay for panel removal, roof repair, and reinstallation. This is a frustrating and expensive process. Make sure you have your roof inspected and repaired before heading out into the sun.

» You: Do you need to replace your roof before going solar?

Other cost factors

That's not all. There are several other costs to consider:

Maintenance: Although solar panels require minimal maintenance, you may have to pay additional costs for repairs or replacement of components, as well as regular cleanings.
Permits: Most cities also require solar permits, which can increase the overall cost of your system.
Installation and Labor: Most companies factor the cost of solar installation and labor into the price of the solar system. However, check before signing the contract.

» Tips: How to get the best solar budget

Solar incentives, tax credits and rebates in Minnesota

The federal Solar Investment Tax Credit (ITC) is an important factor in reducing the cost of solar energy in Minnesota. If you install a home solar system by the end of 2032, you will receive a federal credit equal to 30% of the total cost of the system, including equipment, labor and permits. The credit drops to 26% in 2033 and 22% in 2034.

The average federal loan for a solar investment in Minnesota is $6,816 in 2023.

Minnesota offers numerous local solar incentives to further reduce solar costs. You can benefit from tax exemptions, discounts and low-interest loans.

» Explore: solar incentives in Minnesota

Compare solar installation companies in Minnesota

Compare popular Minnesota solar companies below. Read our guide to finding the best solar companies.

Personalize

Select the information you want to see for each brand. At least one option must be selected.

Frequently asked questions

Can I get free solar panels in Minnesota?

We were unable to find any free solar panel programs in Minnesota. You can rent solar panels or sign power purchase agreements with little or no upfront fees, but it's not completely free. Solar leases typically require a fixed monthly fee; PPAs charge you a fee per unit of electricity.

» Free solar panels: Are they really free?

How much does solar cost in Minnesota?

According to the Solar Energy Industries Association, the cost of solar energy in Minnesota has fallen 43 percent over the past 10 years.

How do I pay for solar panels?

You can pay cash, but most people finance solar panels. A solar loan works like any other loan: there is an application and approval process, and you pay the amount back (with interest) over time.

When considering a solar loan, lease, or PPA (power purchase agreement), always ask:

Do you have a deposit?
How much will I pay each month?
When do the monthly payments increase and by how much?

» Solar modules: rent or buy

How much can I save with solar panels?

When paying in cash, the average savings from solar energy in Minnesota is $17,546 over 25 years. There's a common misconception that solar panels always completely eliminate your monthly electricity bill, but that's not always the case.

The good thing is that after switching to solar energy, those who have bills will pay much less than before. According to EnergySage, you can expect to offset your electric bill by 80 to 108 percent.

» Discover: Solar energy storage to the most remote places

How does net metering work in Minnesota?

If your solar system produces more electricity than your home needs, you can sell it to your local energy provider. This process is called net metering. In Minnesota, you can pay by check or get a credit on your electric bill.

Will hail damage my solar panels?

closure

With affordable solar energy and many solar incentives leading to even lower costs, it's easy for Minnesotans to go green. Over a 25-year period, solar energy can save residents an average of about $17,546.

Solar Costs: Minnesota Compared to Neighboring States

	Acquisition cost*	ITC value (30%)	Typical system size	Average consumption per watt	Recovery phase**	Estimated net savings
Minnesota	$22,720	$6,816	8kW	$2.84	12 years	$17,546
North Dakota	$26,620	$7,986	11kW	$2.42	13 years	$26,028
South Dakota	$25,094	$7,528	10.5kW	$2.39	12 years	$22,923
Iowa	$24,930	$7,479	9kW	$2.77	12 years	$17,572
Wisconsin	$18,200	$5,460	7kW	$2.60	ten years	$21,005

*Federal Solar Investment Tax Credit (CTI); **With full payment in advance

Essay Resources

Consumer editors base their work primarily on government data, industry experts, and original research from other reputable publications. The exact sources for this article are:

EcoWatch, “Cost of Solar Panels in Minnesota.” Accessed December 24, 2023.
Energize, “Minnesota Solar Panels: Local Pricing and Installation Data.” » Accessed December 24, 2023.
Office of Energy Efficiency and Renewable Energy, "Homeowner's Guide to Federal Solar PV Tax Credits." Retrieved December 24, 2023.
Solar Energy Industry Association, Minnesota Solar. Retrieved December 24, 2023.
DSIRE, “Minnesota Solar Program.” Retrieved December 24, 2023.
Energy, “Minnesota Solar Panels.” Retrieved December 24, 2023.

Did you find this article helpful?