Solar Panels Cost 5.2k-15k in Hermantown, MN | October, 2024

Solar Panels Cost $5.2k-$15k in Hermantown, MN | October, 2024

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

The typical price per watt of solar panel systems in Hermantown, MN in October, 2024 is $3.74/W.

This means that, solar panel installations will cost you approximately, on average, $3,740 per 1 kW (or 1000 watts) of generation capacity. A 5 kW solar panel install in Hermantown will generally cost you $13,090 after applying the 30% federal tax credit. To fulfill your energy needs, you could require more than a 5kW system.

On the left-hand side, pick your county to determine the average roof size and the average maximum capacity for solar panels on homes within your area. Find below a full analysis of the {price|costs, 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.
Hermantown: $13,090US Average: $12,562
Average Payback Period The number of years until you break even on the solar investment.
Hermantown: 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.
Hermantown: $4,489US Average: $15,784

Solar Potential in Hermantown

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

Roof size 393sq. ft.
Capacity 5.5kW DC
Electricity 6.1kkWh AC per yr.

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

Hermantown residents typically have an average monthly electric bill of $96.62 per month, with a typical consumption of 646 kWh. Smaller dwellings, such as townhouses and condos, are also encompassed in the numbers cited in the previous sentence.

The average electricity rate in Hermantown, MN in October 2024 is 14.95¢ per kWh.

In Hermantown, a typical electricity user's electricity requirements should be fully accounted for by a solar panel system with a production capacity of 6 kW or more. Upfront, a 6 kWsolar system costs around $22,440, with the 30% tax credit, the price drops to $15,708.

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Average solar panel costs by system size in Hermantown

On the left side below, the cost breakdown for multiple sizes of the solar panel systems set up in Hermantown is displayed. Of course, with a bigger solar system, you will have a larger initial investment, but the rewards are higher electricity savings and more substantial income tax credits.

The solar panel cost and benefit breakdown, displayed in the calculator below and to the right, is based on an average electric bill of $96.62 in Hermantown. Adjust the $96.62 to fit your average bill payment for more precise outcomes.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $435 a year
Est. Price
$5,236
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 1.46 tons a year
  • Equivalent to planting 67 trees a year
  • Equivalent to driving 3,610 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $652 a year
Est. Price
$7,854
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 2.19 tons a year
  • Equivalent to planting 100 trees a year
  • Equivalent to driving 5,415 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $869 a year
Est. Price
$10,472
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 2.92 tons a year
  • Equivalent to planting 134 trees a year
  • Equivalent to driving 7,221 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,087 a year
Est. Price
$13,090
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 3.65 tons a year
  • Equivalent to planting 167 trees a year
  • Equivalent to driving 9,026 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,304 a year
Est. Price
$15,708
Savings from a 6kWthis system
  • Est. yearly production 8,692 kWh
  • Est. monthly savings $97
  • Full payback in 14 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

Hermantown Solar Panel Installation Incentives & Rebates | 2024

The REAP Grant is designed to assist rural agricultural enterprises and small businesses by covering 80% to 100% of the costs associated with solar or wind turbine installations. If you think you might be in this category, we suggest verifying your qualification with our REAP Grant eligibility tool.

For residential solar installations, the majority of homeowners are eligible for a 30% federal income tax credit, which makes solar energy a feasible choice in many parts of the country. State and local governments offer various programs to promote the switch to solar energy.

Residents of Minnesota can access 12 solar rebate and incentive initiatives from a variety of utilities and governmental organizations.

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.

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?

If you're planning to reside in your home past the solar system's payback period, solar panels are a smart decision in Hermantown. A 5 kW solar system in Hermantown, MN might save you an average of $10,098.8 over 20 years, with the break even point generally being 11 years.

The cost of not having solar panels in Hermantown, MN

In addition to missing out on the aforementioned savings, not having solar panels or a separate backup energy source results in complete dependence on your electric utility for electricity. Recent news coverage has demonstrated that complete reliance on your utility company is not always ideal.

Generally, customers in Hermantown face around 0.9 outages. Outages typically last for an average of 93.46 minutes. Major occurrences like overloaded power grids, tornadoes or planned maintenance can lead to a significant rise in these time frames.

A solar energy system, regardless of a backup battery, could lessen the effects of any future power interruptions you might encounter.

Power Outages

Currently, 0 customers are being tracked in St. Louis County.

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Customers Out:

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

Your Energy Needs - While the upfront cost is higher, the price per watt drops with larger solar panel systems. Individuals often realize that installing a solar system to fully cover their electric bill is a beneficial decision, resulting in the most savings.

Make & Model - Just like many products, solar panels are offered in a variety of makes and models. The system preferences of your chosen installer can make it essential to choose a highly rated company. Selecting superior quality materials generally provides a more favorable long-term experience for the buyer.

Solar Panel Type - It's understandable that monocrystalline panels are now the standard in the industry. Although the cost is more, they yield more energy. Most installers use these types of panels.

Your Property - Each property and home presents unique challenges. Sloping terrain, trees, or other impediments may complicate the installation process. By using satellite images, solar installers these days can evaluate your home and incorporate these elements into the first cost estimate.

Labor Rates - The costs associated with the different wages given by companies to their employees are borne by the consumers. Companies paying more to their employees typically get higher reviews for their work and customer service.

Permitting & Interconnection - Depending on the location, permitting and utility interconnection fees will influence your installation price. Quality local installers will integrate these numbers into your preliminary quotes to prevent any surprises.

See what solar panels cost in other MN cities

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Who are the best solar installers in Hermantown?

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.

Hermantown, MN Solar Panel Cost FAQs

  • The typical cost per watt for solar panels in Hermantown, MN as of October, 2024 is $3.74/W. The approximate cost of a 5 kW solar panel system in Hermantown, MN, after deducting federal tax credits, is $13,090.

  • Various utility providers and government organizations in Minnesota are offering 12 rebates and incentives at this time. In addition, the 30% federal income tax credit is available to almost everyone.

  • Cash payments result in the greatest savings, but numerous financing options for solar panels that are financially advantageous are now available. Financing options are frequently available through installers and will be included in your initial quotes.

  • Yes, the average 5 kW solar panel payback time in Hermantown, MN is 11 years, with expected savings of $10,098.8 on electricity over 20 years.
Alex Zdanov
Last Reviewed By: Alex Zdanov
Published: 2024-10-01