Solar Panels Cost $5.1k-$15k in Dakota County, MN | February, 2025
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How much do solar panels cost in Dakota County, MN in 2025?
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Solar systems in Dakota County, MN during February, 2025 typically are $3.71 per watt.
Or in other words, for every 1000 watts (or 1 Kw) your system can generate you will spend $3,710 to get your system installed in . After deducting the 30% federal tax credit, the cost of a 5 kW solar panel system in Dakota County typically totals up to around $12,985. Note that a more powerful system may be required to adequately cover your energy requirements.
On the left-hand side, you can choose your county to find out the average roof size and the maximum capacity for solar panels in residences in your area. The following summary, below, highlights the price, payback period, and 20-year average savings for a 5 kW system installed in your county.
Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Dakota County: $12,985US Average: $12,523
Average Payback Period The number of years until you break even on the solar investment.
Dakota County: 11 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Dakota County: $5,275US Average: $16,301
Solar Potential in Dakota County
Estimated system size and solar electricity production per median viable roof in Dakota County.
Roof size 751sq. ft.
Capacity 10.5kW DC
Electricity 12.3kkWh AC per yr.
Electricity Costs in Dakota County, MN & What that Means for Your Solar Panel Pricing
The average monthly electric bill for a Dakota County energy consumer is 99.27, based on an average usage of 666 kWh. Smaller homes, including condos and bungalows, are also encompassed by the statistics indicated in the previous sentence.
In February 2025, the electricity rate in Dakota County, MN averages 14.9¢ per kWh.
Before any incentives, a 6 kW solar panel system will cost around $22,260, with the 30% tax credit, the price drops to $15,582.
Go Solar for less than your cell phone bill.
Average solar panel costs by system size in Dakota County
Displayed on the left, you will find a price breakdown for various solar panel system sizes set up in Dakota County. As expected, a more extensive solar system implies a greater initial expense, but it also results in increased electricity savings and larger income tax credits.
Look at the solar panel cost calculator to the right and below to see the cost and benefit details calculated from an average $99.27 electric bill in Dakota County. If you want more personalized results, just modify the $99.27 to whichever your average electricity bill is.
System Size
Roof Size Min. space required
Electricity Value Annual Production
Est. Price
System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $435 a year
Est. Price
$5,194
Savings from a 2kWthis system
Est. yearly production 2,897 kWh
Est. monthly savings $36
Full payback in 4 years
Environmental Impacts
Reduces CO2 emissions by 1.63 tons a year
Equivalent to planting 75 trees a year
Equivalent to driving 4,031 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $652 a year
Est. Price
$7,791
Savings from a 3kWthis system
Est. yearly production 4,346 kWh
Est. monthly savings $54
Full payback in 7 years
Environmental Impacts
Reduces CO2 emissions by 2.44 tons a year
Equivalent to planting 112 trees a year
Equivalent to driving 6,046 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $869 a year
Est. Price
$10,388
Savings from a 4kWthis system
Est. yearly production 5,795 kWh
Est. monthly savings $72
Full payback in 9 years
Environmental Impacts
Reduces CO2 emissions by 3.26 tons a year
Equivalent to planting 150 trees a year
Equivalent to driving 8,062 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,087 a year
Est. Price
$12,985
Savings from a 5kWthis system
Est. yearly production 7,244 kWh
Est. monthly savings $91
Full payback in 11 years
Environmental Impacts
Reduces CO2 emissions by 4.07 tons a year
Equivalent to planting 187 trees a year
Equivalent to driving 10,077 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,304 a year
Est. Price
$15,582
Savings from a 6kWthis system
Est. yearly production 8,692 kWh
Est. monthly savings $99
Full payback in 13 years
Environmental Impacts
Reduces CO2 emissions by 4.45 tons a year
Equivalent to planting 204 trees a year
Equivalent to driving 11,018 mi less a year
Dakota County Solar Panel Installation Incentives & Rebates | 2025
Rural entrepreneurs and farmers might find that the REAP Grant pays for 80% to 100% of their costs when installing solar energy or wind energy systems. Wondering if you are eligible? Our REAP Grant eligibility tool can help you find out.
Homeowners can benefit from a 30% federal income tax credit for installing residential solar panels, which makes solar power a feasible option across much of the country. Moreover, many state and local programs are intended to encourage more people to adopt solar power.
In Minnesota, multiple utilities and government organizations offer 20 solar rebate and incentive programs.
Solar incentives in MNIncentive Description Value
Rochester Public Utilities - Solar Rebate Program
Value:Up to $500
Residential and business customers of RPU, the municipal electric utility for the city of Rochester, may be entitled to rebates on new solar photovoltaic devices and components. New system installations will yield a $500 incentive regardless of their rated capacity. Systems should meet all city, state, and federal standards and be interconnected to the grid under a net metering contract. To apply, customers must first schedule an energy audit to verify quantitative efficiency improvement. Additional information is available from the RPU website.
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.
Marshall Municipal Utilities - Solar Thermal Water Heater Rebate Program
Value:Up to $2,000
Residential customers of MMU, the municipal utility for the city of Marshall, may be eligible for special rebates on new solar water heaters. The incentive amount will depend on the physical size of the solar panels. Currently, MMU will pay $20 per square foot up to $2,000. Rebates add to state-level tax credits and exemptions. Additional information is available from the MMU website.
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.
Dakota Electric Association - Residential Energy Efficiency Rebate Program
Value:Varies
Residential and commercial customers of the Dakota Electric Association may be entitled to rebates on a variety of energy-efficient improvements. Available rebate offers will vary from time to time. Current offers include rebates on large appliances, lighting, insulation/weatherization, central/room HVAC, and new solar PV or geothermal heat systems. Rebate amounts depend on the type of project and how much efficiency it will add to the property. Additional information is available from the cooperative website.
Xcel Energy - Renewable Development Fund Grants
Value:Varies
NOTE: This program appears to be defunct as of 2013. 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. Grant programs supported by the fund usually take the form of requests for proposals (RFPs). Xcel details grant revenue and spending in an annual report submitted to the state legislature, and grant recipients produce similar supplementary reports on their projects' environmental impact. Additional information is available from the Xcel website.
Owatonna Public Utilities - Residential Conserve and Save Rebate Program
Value:Varies
Residential customers of OPU, the municipal utility for the city of Owatonna, may be eligible for rebates on energy-efficient appliances. Qualifying appliances will vary from time to time, but currently include fridge/freezers and room air conditioners certified by ENERGY STAR. To qualify for a rebate, the owner must recycle their previous appliance. OPU will cover any fees incurred from the recycling of appliances as a part of the rebate. Additional information is available from the OPU 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.
Minnesota Power - Power Grant Program
Value:Varies
Minnesota Power manages a large-scale energy efficiency grant program. Up to $50,000 in awards may be available to businesses and farmers investing in energy efficiency improvements, including new renewable energy systems and experimental technologies. Grants depend on the applicant's need and projected energy savings. They are supplemented by rebates of $200/kW of the improvements' rated capacity. Additional information is available from the Minnesota Power 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.
Marshall Municipal Utilities - Residential Energy Efficiency Rebate Program
Value:Varies
Residential customers of MMU, the municipal utility for the city of Marshall, may be eligible for rebates on new energy-efficient systems and appliances. Available rebate offers will vary from time to time. Current offers include incentives for ENERGY STAR-certified fridge/freezers, washer/dryers, dishwashers, central/room HVAC, water heaters, dehumidifiers, and solar/geothermal systems (through a separate program). Customers may also receive financial assistance to certify their entire home with ENERGY STAR through an initiative targeted at new construction. Additional information is available from the MMU website.
Are solar panels worth it in Dakota County, MN?
Intending to stay in your house beyond the solar payback period? Solar panels are a wise investment in Dakota County. Installing a 5 kW solar system in Dakota County, MN will, on average, save you $10,839.8 over 20 years, and you can expect to break even in about 11 years.
The cost of not having solar panels in Dakota County, MN
The absence of solar panels or another backup power source results in missing out on the previously highlighted savings and full dependence on your electric utility for power. Recent news coverage has revealed that total dependence on your utility company isn't always the most favorable scenario.
Each year, the utilities in Dakota County have recorded about 0.72 outages per customer. Outages generally last for an average of 73.73 minutes. During major occurrences like lightning strikes, overloaded power grids, or wildlife damage, these times can extend significantly.
Take a look at the info below to see the number of current electricity customers without power in Dakota County.
A solar energy system could help mitigate the effects of future outages, with or without a backup battery.
Power Outages
Currently, 0 customers are being tracked in Dakota County.
What impacts the cost of solar panels in Dakota County, MN?
Your Energy Needs - The cost per watt decreases with larger solar panel systems, even if the upfront cost is greater. Consumers often find that setting up a solar system that can offset their entire electric bill is useful, resulting in optimal savings.
Make & Model - There are a wide variety of makes and models of solar panels. Because the installer you select might have particular brand preferences, choosing a reputable contractor is even more important. Consumers who opt for better equipment usually enjoy a more favorable long-term experience.
Solar Panel Type - Monocrystalline panels have established themselves as the standard in the industry, and justifiably so. Even with a higher cost, this technology generate more energy. Many installers choose panels made using this material.
Your Property - Every home and property differs in its own way. Challenges like uneven land, trees, or additional challenges can increase the difficulty of installing solar panels. These days, the majority of solar installers are able to utilize satellite images to assess your home and incorporate these elements for the preliminary cost estimate.
Labor Rates - The pay employees get from their employers are different, and these expenses are transferred to the consumers. Businesses often get higher reviews for their services and customer service when they offer better wages.
Permitting & Interconnection - The final price of your installation will be affected by local permitting and utility interconnection fees, which vary by location. Quality local installers will include these figures in your first estimates to ensure transparency.
See what solar panels cost in other Dakota County cities
The typical cost per watt for solar panels in Dakota County, MN as of February, 2025 is $3.71/W. The approximate cost of a 5 kW solar panel system in Dakota County, MN, after deducting federal tax credits, is $12,985.
Residents of Minnesota can currently take advantage of 20 rebates and incentives offered by various utilities and government bodies. Furthermore, the majority of people qualify for the 30% federal tax credit.
Even though paying cash yields the best savings, there are now multiple financing options for solar panels that are also advantageous. Information about financing options is typically provided in initial quotes provided by installers.
Yes, the payback period for 5 kW solar energy systems in Dakota County, MN averages 11 years, with electricity savings of about $10,839.8 over 20 years.