MinnesotaSolar Panel Costs & Savings
Minnesota averages 4.0 hrs of peak sun per day with an average payback period of 10 years. Homeowners can save $28,800 over 20 years.
Peak Sun Hours
4.0 hrs
per day
6kW System Cost
$18,900
before incentives
Payback Period
10 yrs
average
20-Year Savings
$28,800
estimated
Solar Cost Breakdown in Minnesota
| Item | Amount |
|---|---|
| 6kW System Cost ($3.15/W) | $18,900 |
| Federal Tax Credit (30%) | -$5,670 |
| Net Cost | $13,230 |
Net Metering
Full Net Metering
Electricity Rate
15.63¢/kWh
Avg Monthly Bill
$119/mo
Solar Incentives in Minnesota
Minnesota Solar*Rewards
Xcel Energy's Solar*Rewards provides incentives for residential solar installations in Minnesota.
Federal Solar Investment Tax Credit (ITC)
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Solar Potential by ZIP Code in Minnesota
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 56001 | Mankato | 4.1 hrs | $1,153 | 11.5 yrs |
| 55101 | St. Paul | 4.0 hrs | $1,125 | 11.8 yrs |
| 55401 | Minneapolis | 4.0 hrs | $1,125 | 11.8 yrs |
| 55901 | Rochester | 4.0 hrs | $1,125 | 11.8 yrs |
| 56301 | St. Cloud | 4.0 hrs | $1,125 | 11.8 yrs |
| 56201 | Willmar | 4.0 hrs | $1,125 | 11.8 yrs |
| 56401 | Brainerd | 3.9 hrs | $1,097 | 12.1 yrs |
| 56501 | Detroit Lakes | 3.9 hrs | $1,097 | 12.1 yrs |
| 55601 | Two Harbors | 3.8 hrs | $1,069 | 12.4 yrs |
| 56601 | Bemidji | 3.8 hrs | $1,069 | 12.4 yrs |
| 56701 | Thief River Falls | 3.8 hrs | $1,069 | 12.4 yrs |
| 55801 | Duluth | 3.7 hrs | $1,041 | 12.7 yrs |
Compare With Other States
More Data for Minnesota
Frequently Asked Questions
How much do solar panels cost in Minnesota?
A typical 6kW solar system in Minnesota costs approximately $18,900 before incentives. After the 30% federal tax credit ($5,670), the net cost is approximately $13,230.
How long does solar take to pay for itself in Minnesota?
The average solar payback period in Minnesota is 10 years, slower than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does Minnesota have net metering?
Minnesota has full net metering. Homeowners receive full retail rate credits for excess solar energy sent to the grid.
How much sun does Minnesota get for solar?
Minnesota averages 4 peak sun hours per day, which is 0.5 hours below the national average. A 6kW system produces approximately 8,760 kWh per year.
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Data verified March 2026 · Source: NREL, DSIRE, EIA