Solar Panels Cost 2.6k-13k in Austin, MN | October, 2024

Solar Panels Cost $2.6k-$13k in Austin, MN | October, 2024

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How much do solar panels cost in Austin, MN in 2024?

Going solar in October, 2024 in Austin, MN costs about $3.76/W.

According to the price, solar panel installations will cost you approximately $3,760 per 1000 watts (1 kW) of production capacity. When you subtract the 30% federal tax credit, you will spend around $13,160, in Austin, for a 5 kW solar system. Please consider, a 5kW system might not be sufficient to satisfy your energy demands.

On the left, choose your county to see the typical roof size and the maximum generation capacity for solar panels on homes in your area. Below, you'll find a full outline of the price, payback period, and 20-year average savings for a 5 kW system in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Austin: $13,160US Average: $12,562
Average Payback Period The number of years until you break even on the solar investment.
Austin: 13 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Austin: $1,792US Average: $15,784

Solar Potential in Austin

Estimated system size and solar electricity production per median viable roof in
Austin.

Roof size 724sq. ft.
Capacity 10.13kW DC
Electricity 11.5kkWh AC per yr.

Electricity Costs in Austin, MN & What that Means for Your Solar Panel Pricing

For Austin energy consumers, the typical electric bill is $85.80 per month, with a usage of 583 kWh. Small residences, including lofts or apartments, are also encompassed in the statistics noted in the prior sentence.

The rate of electricity in Austin, MN, averaging, is 14.72¢ per kWh in October 2024.

If you’re a typical energy user in Austin you must have a 5 kW or more sized system to meet all of your power needs. At this time, a 5 kW solar system will cost you approximately $18,800, but the federal tax credit reduces the price by 30%, making it $13,160.

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Average solar panel costs by system size in Austin

To the left and below, you can find a detailed cost breakdown for different solar panel system sizes installed in Austin. As expected, with a more extensive solar system, you'll see a greater initial expense, but the benefits are higher electricity savings and more substantial income tax credits.

The solar panel calculator, located to the right and below, gives a detailed cost and benefit analysis based on a typical $85.80 electric bill for Austin. Change the $85.80 to your average bill payment for custom results.

System Size 1kW
Roof Size Min. space required
72 ft²
Electricity Value Annual Production $217 a year
Est. Price
$2,632
Savings from a 1kWthis system
  • Est. yearly production 1,449 kWh
  • Est. monthly savings $18
  • Full payback in 3 years
Environmental Impacts
  • Reduces CO2 emissions by 0.82 tons a year
  • Equivalent to planting 38 trees a year
  • Equivalent to driving 2,036 mi less a year
System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $435 a year
Est. Price
$5,264
Savings from a 2kWthis system
  • Est. yearly production 2,897 kWh
  • Est. monthly savings $36
  • Full payback in 5 years
Environmental Impacts
  • Reduces CO2 emissions by 1.65 tons a year
  • Equivalent to planting 76 trees a year
  • Equivalent to driving 4,072 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $652 a year
Est. Price
$7,896
Savings from a 3kWthis system
  • Est. yearly production 4,346 kWh
  • Est. monthly savings $54
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 2.47 tons a year
  • Equivalent to planting 113 trees a year
  • Equivalent to driving 6,108 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $869 a year
Est. Price
$10,528
Savings from a 4kWthis system
  • Est. yearly production 5,795 kWh
  • Est. monthly savings $72
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 3.29 tons a year
  • Equivalent to planting 151 trees a year
  • Equivalent to driving 8,144 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,087 a year
Est. Price
$13,160
Savings from a 5kWthis system
  • Est. yearly production 7,244 kWh
  • Est. monthly savings $86
  • Full payback in 13 years
Environmental Impacts
  • Reduces CO2 emissions by 3.91 tons a year
  • Equivalent to planting 179 trees a year
  • Equivalent to driving 9,669 mi less a year

Austin Solar Panel Installation Incentives & Rebates | 2024

Eligible rural small businesses and agricultural operations might have their solar energy or wind turbine installation costs covered by the REAP Grant, ranging from 80% to 100%. Believe you might be eligible? Use our REAP Grant eligibility tool to check your eligibility.

With the accessibility of a 30% federal income tax credit, solar energy becomes a viable solution for most homeowners, notably in numerous parts of the country. There are also a range of state and local efforts aimed at boosting solar energy use.

Minnesota has 13 solar rebate and incentive initiatives available from multiple utilities and government agencies.

Owatanna Public Utilities - Solar Rebate Program

Value:Up to $500

Commercial and residential customers of OPU, the municipal power utility for the city of Owatonna, may be entitled to rebates on solar PV systems and water heaters. Rebates add to existing federal tax incentives. New PV installations will yield a $500 rebate regardless of their rated capacity. Water heaters yield a rebate based on the area of the panels; the current rate is $15 per square foot. To qualify, systems should meet all city, state, and federal standards and be interconnected to the grid under a net metering contract. Interested customers should schedule an energy audit with an OPU participating solar contractor.

Austin Utilities - Solar Rebate Program

Value:Up to $1

Residential and commercial customers of AU, the municipal electric utility for the city of Austin, may be eligible for rebates on new solar PV systems and water heaters. Qualifying systems should meet all state and federal standards, be installed by a certified solar contractor, and be interconnected to the grid under a net metering arrangement. Should a system meet these qualifications, owners can earn a rebate of $500 for PV or $15/square foot of water heater collector area. Application forms are available from the AU website.

Minnesota Power - SolarSense Solar Rebate Program

Value:Up to $10,000

Minnesota Power customers may be entitled to rebates on new solar photovoltaic systems. To qualify, a system must meet all state and federal standards, be installed by a certified solar contractor, and be interconnected to the grid under a net metering contract. The incentive amount is determined through an NREL tool which considers the system's rated capacity and other design characteristics. Current rates are 56 cents/estimated kilowatt hour of production in the first year of the system's use. Minnesota Power must preapprove all incentives. Customers must therefore apply for the rebate before purchasing their system. Additional information is available from the website.

Value of Solar Tariff

Value:Varies

Net metering in Minnesota is set to be replaced by a Value of Solar (VOST) tariff program standardized by the Department of Commerce. No utility has implemented such a program as of 2021, though Xcel Energy is exploring retail-rate tariffs in a similar vein to VOST. VOST operates as an "inflow-outflow" program. Customers are technically billed for all electricity they generate, including excess generation (EG) sent to the grid. Rather than paying for all generated energy, however, they will only owe the cost of their "nettable energy" in that cycle. Nettable energy is equal to total power generated at the standard billed cost minus EG at a different "credit rate." As with net metering, should generation exceed consumption, the remaining credits will be applied to subsequent cycles. VOST contracts last for 20 years; credit rates are fixed for the length of the contract. "Virtual VOST" provisions exist to compensate microgrid subscribers in proportion.

Farm Opportunities Loan Program

Value:Varies

New sustainable farm equipment may be eligible for special financing through Minnesota's Farm Opportunity Loan Program. The program is administered by the state Rural Finance Authority in conjunction with various funding partners. Loans can cover up to 80% of purchase and installation costs. The RFA assumes responsibility for servicing 45% of the principal up to $45,000. Interest on the RFA portion is 3%; the remaining 55% will accrue interest at the current market rate. Additional information is available from the RFA website.

Community-Based Energy Development (C-BED) Tariff

Value:Varies

Utilities in Minnesota are required to participate in Community-Based Energy Development tariff programs (C-BED) to support the construction and onboarding of new renewable energy facilities, including solar and wind farms. C-BED contracts last for 20 years. During the term, the state will pay utilities at a fixed rate for the energy they produce. The underlying goal is for utilities to more easily recoup the costs for their renewable facilities. Additional information is available from the Minnesota Public Utilities Commission website.

Value-Added Stock Loan Participation Program

Value:Varies

The Minnesota Rural Finance Authority (RFA) operates a stock financing program to aid farmers in purchasing shares of nearby wind farms or biomass energy facilities. Loans are offered by private banking partners, though the RFA sets loan terms and low interest rates for up to 45% of the principal. Qualifying applicants must not be worth more than $450,000. Additional information is available from the RFA website.

Fix-Up Loan

Value:Varies

Minnesota homeowners making energy efficiency or accessibility improvements may be eligible for special loans from the state Housing Finance Agency (MHFA). "Fix-Up Loans" have a maximum of $15,000 in principal at market-rate interest. Applicants have direct access to MHFA lending partners and can negotiate loan terms. They may also use the contractors and builders of their choice. Lending partners differ between the 11-county Twin Cities area and the rest of the state. Additional information is available from the MHFA website.

Rural Minnesota Energy Board PACE Program

Value:Varies

The St. Paul Port Authority operates a PACE program in Duluth, Mankato, and certain Twin Cities suburbs and exurbs. Property owners will have access to an open market of local lenders offering competitive loans and terms for energy efficiency improvements. Effectively, funding comes from the government; repayment will therefore take the form of a tax lien senior to the property's mortgage. Residential structures are not eligible for PACE loans due to regulatory concerns from the FHFA. Fannie Mae and Freddie Mac are prohibited from acquiring a mortgage with an active PACE lien. Additional information is available from the Port Authority website.

Minnesota PACE Program (MinnPACE)

Value:Varies

The St. Paul Port Authority operates a PACE program in Duluth, Mankato, and certain Twin Cities suburbs and exurbs. Property owners will have access to an open market of local lenders offering competitive loans and terms for energy efficiency improvements. Effectively, funding comes from the government; repayment will therefore take the form of a tax lien senior to the property's mortgage. Residential structures are not eligible for PACE loans due to regulatory concerns from the FHFA. Fannie Mae and Freddie Mac are prohibited from acquiring a mortgage with an active PACE lien. Additional information is available from the Port Authority website.

Interconnection Standards

Value:Varies

Distributed generation and interconnection practices are standardized by the Minnesota Public Utilities Commission. Standards were last updated in 2019 and continue to be amended regularly. Unlike states which use tiers and levels to organize energy systems, Minnesota uses permit processes as benchmarks. Systems at a qualifying capacity level may be eligible for a "Fast Track" permit review. All systems must follow recognized standards such as those set by IEEE or UL. Customers may be required by their utility to carry liability insurance coverage or install additional safety features.

Renewable Development Fund (RDF)

Value:Varies

Xcel Energy has administered a Renewable Development Fund since 1999. The fund's annual budget amounts to $9 million, the result of a state-set rate per nuclear waste reservoir at the Prairie Island, Minnesota plant. Additional funding comes from a surcharge on Xcel customer bills in Minnesota and western Wisconsin. Funding supports incentive programs and other initiatives to adopt renewable energy. The University of Minnesota's Institute for the Environment also taps into the fund for its own research. Additional information is available from the Xcel website.

Xcel Energy - Solar*Rewards Program

Value:Varies

Solar*Rewards is the formal name for Xcel Energy's net metering and distributed generation tariff incentive programs nationwide. Under Minnesota law, renewable energy customers hold ownership of renewable energy credits (RECs) they generate. With a Solar*Rewards contract, the customer agrees to sell all RECs to the utility for a fixed amount of time and have a bidirectional meter installed on their system to track energy sent back to the grid. In exchange, the utility will provide fair compensation for both excess generation and credits accrued. To qualify for incentives, a new PV system must pass an engineering audit and not exceed 20 kW of DC capacity. Leased systems do not qualify for Solar*Rewards contracts. Additional information is available from the Xcel website.

Are solar panels worth it in Minnesota?

Intending to stay in your house beyond the solar payback period? Solar panels are a wise investment in Austin. Installing a 5 kW solar system in Austin, MN will, on average, save you $7,432 over 20 years, and you can expect to break even in about 13 years.

The cost of not having solar panels in Austin, MN

The lack of solar panels or an alternative energy backup means you'll forgo the earlier mentioned savings and be completely reliant on your electric utility for power. Recent media examples have shown that full reliance on your utility company isn't always ideal.

Customers in Austin have experienced an average of 0.66 utility outages per year in recent times. Each outage lasts an average of 61 minutes. In the case of major events such as heavy rain and flooding, vandalism, or grid management errors, this period can increase substantially.

With or without a backup battery, a solar panel system could relieve the stress of future power disruptions you might encounter.

Power Outages

Currently, 0 customers are being tracked in Mower County.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Austin, MN?

Your Energy Needs - The cost per watt is decreased with larger solar panel systems, even though the initial cost is greater. Setting up a solar panel system that can cover the electric bill is advantageous to consumers because of the money saved.

Make & Model - Similar to many other products, there are different makes and models of solar panels and mounting equipment on the market. Your contractor’s potential system preferences make it more important to select a reputable installer. Higher quality makes and models often provide a more positive long-term experience for buyers.

Solar Panel Type - Monocrystalline panels are generally accepted as the standard in the industry, and deservedly so. Even though they are more expensive, they generate more energy. The majority of installers work with panels constructed from this material.

Your Property - No two homes or properties are the same. Elements such as trees, uneven ground, or additional obstacles might complicate the installation process. These days, the majority of solar installers can assess your home with satellite images and factor in these considerations in the preliminary cost estimate.

Labor Rates - Various wages are offered to employees by various companies, and these expenses are transferred to the consumers. Higher wages frequently lead to companies getting better reviews for their work and customer service.

Permitting & Interconnection - Local permitting and utility interconnection fees, which differ by region, will influence your final installation cost. Experienced local installers will incorporate these numbers into your first quotes to avoid any surprises.

See what solar panels cost in other MN cities

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Who are the best solar installers in Austin?

Academy Energy Group

Newburgh, IN(812) 518-2150

Services

  • Auditing of energy requirements for independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Monitoring of independent energy generation.
  • Reparation of solar arrays.
  • Installation of solar arrays.

Solar Farm

St. Paul, MN(651) 271-8410

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Dividend Finance

San Francisco, CA(415) 805-7000

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Sundial Energy

St. Louis Park, MN(612) 439-9591

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

SunPower Corporation

San Jose, CA(800) 786-7693

Services

  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.
  • Installation of solar arrays.
  • Reparation of solar arrays.

Harvest Solar

Jackson, MI(888) 907-6527

Services

  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Sunnova Energy

Houston, TX(866) 786-6682

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

GRNE Solar

Palatine, IL(312) 859-3417

Services

  • Installation of batteries for energy storage.
  • Consulting on all things solar related.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Entegrity

Little Rock, AR(800) 700-1414

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

Ideal Energy

Fairfield, IA(800) 634-4454

Services

  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.

LightEdison

Denver, CO(888) 966-6377

Services

  • Expertise in consulting on advantageous financing for solar.
  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.

Empire Solar Group

Salt Lake City, UT(800) 467-4562

Services

  • Solar systems for selling electricity back to the grid.
  • Installation of batteries for energy storage.
  • Installation of solar arrays.

Austin, MN Solar Panel Cost FAQs

  • As of October, 2024, the average per-watt cost for solar panels in Austin, MN is $3.76/W. Post federal tax credit, a 5 kW solar panel system installation in Austin, MN will roughly cost $13,160.

  • Homeowners in Minnesota can take advantage of 13 different rebates and incentives from a variety of utility companies and government agencies. Additionally, almost everyone is entitled to the 30% federal income tax credit.

  • Although cash payments yield the greatest savings, numerous financing options for solar panels now exist that are also cost-effective. Many installers will detail information about their financing partners in the initial quotes they provide.

  • Yes, in Austin, MN, 5 kW solar panel systems usually pay off in 13 years, providing an average electricity cost savings of $7,432 over a 20-year period.
Alex Zdanov
Last Reviewed By: Alex Zdanov
Published: 2024-10-01