Solar Panels Cost 5.3k-16k in Minneapolis, MN | September, 2024

Solar Panels Cost $5.3k-$16k in Minneapolis, MN | September, 2024

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

The current cost per watt for solar panel installations in Minneapolis, MN in September, 2024 is $3.82/W.

In accordance with the price, we are able to come to the conclusion that for every 1 kW (1000 watts) of solar generation capacity will require an investment of $3,820 for installation. A 5 kW solar panel install in Minneapolis averages approximately $13,370 after accounting for the 30% federal income tax credit. It's vital to consider that a more powerful system might be essential to meet your energy demands.

Choose your county from the menu on the left to see the average roof size and maximum solar panel system capacity for homes in your area. Additionally, you can also see an overview of the costs, payback period and 20 year average savings for a 5 kW system installed in your county below.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Minneapolis: $13,370US Average: $12,598
Average Payback Period The number of years until you break even on the solar investment.
Minneapolis: 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.
Minneapolis: $4,785US Average: $15,732

Solar Potential in Minneapolis

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

Roof size 554sq. ft.
Capacity 7.75kW DC
Electricity 8.8kkWh AC per yr.

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

Energy consumers in Minneapolis usually pay $99.52 per month for electricity, consuming an typical of 594 kWh. These numbers also cover apartments and smaller dwellings with less energy demand.

Minneapolis, MN's electricity rate averages 16.76¢ per kWh in September 2024.

If your household uses a typical amount of electricity in Minneapolis, you will need a solar panel system of 6 kW or larger to fully account for your full energy usage needs. The price of a a 6 kW solar panel system is approximately $22,920 upfront, but the federal tax credit provides a 30% credit, bringing the price down to $16,044.

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Average solar panel costs by system size in Minneapolis

To your left, there is a detailed cost breakdown for the various solar panel system sizes set up in Minneapolis. When you choose a larger solar system, the cost is larger, but it also yields higher electricity savings and a more substantial income tax credit.

The cost and benefit breakdown for solar panels, presented in the calculator down and to the right, is based on an average electric bill of $99.52 in Minneapolis. Swap the $99.52 with your average electricity bill for custom results.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $478 a year
Est. Price
$5,348
Savings from a 2kWthis system
  • Est. yearly production 2,812 kWh
  • Est. monthly savings $40
  • Full payback in 4 years
Environmental Impacts
  • Reduces CO2 emissions by 1.9 tons a year
  • Equivalent to planting 87 trees a year
  • Equivalent to driving 4,694 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $717 a year
Est. Price
$8,022
Savings from a 3kWthis system
  • Est. yearly production 4,217 kWh
  • Est. monthly savings $60
  • Full payback in 7 years
Environmental Impacts
  • Reduces CO2 emissions by 2.84 tons a year
  • Equivalent to planting 131 trees a year
  • Equivalent to driving 7,041 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $956 a year
Est. Price
$10,696
Savings from a 4kWthis system
  • Est. yearly production 5,623 kWh
  • Est. monthly savings $80
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 3.79 tons a year
  • Equivalent to planting 174 trees a year
  • Equivalent to driving 9,388 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,195 a year
Est. Price
$13,370
Savings from a 5kWthis system
  • Est. yearly production 7,029 kWh
  • Est. monthly savings $100
  • Full payback in 11 years
Environmental Impacts
  • Reduces CO2 emissions by 4.74 tons a year
  • Equivalent to planting 218 trees a year
  • Equivalent to driving 11,735 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,434 a year
Est. Price
$16,044
Savings from a 6kWthis system
  • Est. yearly production 8,435 kWh
  • Est. monthly savings $100
  • Full payback in 13 years
Environmental Impacts
  • Reduces CO2 emissions by 4.76 tons a year
  • Equivalent to planting 219 trees a year
  • Equivalent to driving 11,785 mi less a year

Minneapolis Solar Panel Installation Incentives & Rebates | 2024

The REAP Grant can potentially cover between 80% and 100% of the installation costs for solar or wind turbines for rural small businesses and farms. Curious if you qualify? Our REAP Grant eligibility tool can help you verify.

Homeowners can take advantage of a 30% federal income tax credit for installing residential solar panels, making solar power a sensible option across much of the country. Moreover, a number of state and local programs are available to incentivize solar adoption.

Multiple utilities and government organizations in Minnesota have 12 solar rebate and incentive programs.

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 your goal is to maintain your home well past the payback period of your solar system, solar panels are an clear choice in Minneapolis. A 5 kW system in Minneapolis, MN will save the average homeowner, on average, $10,514.8 over a 20 period and the average break even point is 11 years.

The cost of not having solar panels in Minneapolis, MN

Apart from missing out on the aforementioned savings, not installing solar panels or any backup energy system leaves you totally reliant on your electric utility for power. Recent news coverage has demonstrated that full reliance on your utility company isn't always the most favorable scenario.

Every year, customers in Minneapolis face approximately 0.95 outages each year. On average, each outage lasts for 114.46 minutes. Major events like heavy rain and flooding, construction accidents, or overloaded power grids can considerably extend these durations.

Whether or not a backup battery is included, a solar panel system could reduce the impact of future power outages you might encounter.

Power Outages

Currently, 0 customers are being tracked in Hennepin County.

Learn more

Customers Out:

0

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

Your Energy Needs - While the upfront cost is larger, the price per watt declines with larger solar panel systems. Individuals often find that installing a solar system that can offset their electric bill is highly beneficial. This strategy results in increased savings.

Make & Model - As with many other products, there are different makes and models of solar panels and mounting equipment available. The brand preferences of your selected installer can make it important to pick a reputable installer. Buyers who opt for better materials generally enjoy a superior long-term experience.

Solar Panel Type - Monocrystalline panels have emerged as the industry standard, and deservedly so. Even though they are more expensive, they produce more energy. The majority of installers utilize panels constructed from this material.

Your Property - Trees, uneven land, or other obstacles can make the installation process more challenging. With the use of satellite images, many solar installers currently can evaluate your home and include these elements into the initial cost estimate.

Labor Rates - Variations in employee wages across companies cause expenses that are passed on to the consumers. Companies that invest in higher wages often see higher reviews for their services and customer service.

Permitting & Interconnection - Local permitting and utility interconnection fees, which differ by region, will influence your final installation cost. That said, reputable local installers will be able to build these numbers into your first quotes so there are no surprises.

See what solar panels cost in other MN cities

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Who are the best solar installers in Minneapolis?

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.

Minneapolis, MN Solar Panel Cost FAQs

  • The average solar panel cost in Minneapolis, MN as of September, 2024 is estimated at $3.82/W. With the federal tax credit, the cost of a 5 kW solar panel system in Minneapolis, MN drops to roughly $13,370.

  • Residents of Minnesota can currently take advantage of 12 rebates and incentives offered by various utilities and government bodies. Also, nearly everyone can take advantage of the 30% federal tax credit.

  • While paying cash provides the most savings, various financing options for solar panels exist that also are financially sensible. Financing options from installers will often be detailed in your initial quotes.

  • Yes, in Minneapolis, MN, the average time for 5 kW solar panel systems to pay for themselves is 11 years, leading to electricity savings of $10,514.8 over a 20-year period.
Ginalyn Gelera
Last Reviewed By: Ginalyn Gelera
Published: 2024-09-01