Solar Panels Cost 5.3k-16k in Owatonna, MN | October, 2024

Solar Panels Cost $5.3k-$16k in Owatonna, MN | October, 2024

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

Going solar in Owatonna, MN averages out to $3.83 per watt in October, 2024.

Utilizing the cost, we are able to come to the conclusion that for every 1 kW (1000 watts) your solar system can generate, you will need to spend, on average, $3,830 to have it installed. Taking into consideration the 30% federal tax credit, a 5 kW panel install in Owatonna typically costs $13,405. It should be noted that a bigger system might be necessary to adequately cover your energy demands.

By selecting your county on the left, you can find out the average roof size and the average maximum capacity for residential solar panel systems in your area. You can review the price, payback period, and 20-year average savings for a 5 kW system in your county below.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Owatonna: $13,405US Average: $12,562
Average Payback Period The number of years until you break even on the solar investment.
Owatonna: 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.
Owatonna: $1,303US Average: $15,784

Solar Potential in Owatonna

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

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

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

Energy consumers in Owatonna usually pay $85.22 per month for electricity, with a typical monthly usage of607 kWh. This statistic also reflects data from apartments and smaller housing units, which typically use less energy consumption.

In October 2024, the electricity rate in Owatonna, MN is on average 14.03¢ per kWh.

Average citizens in Owatonna may need a solar power system with a capacity of 6 kW or more to take care of their entire electricity usage requirements. Right now, a 6 kW setup will cost around $22,980 upfront, with the 30% federal tax credit, the cost lowers to $16,086.

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Average solar panel costs by system size in Owatonna

On the left side below, you can find a detailed cost breakdown for various solar panel system sizes set up in Owatonna. When you choose a more extensive solar system, the cost is greater, but it also leads to more significant electricity savings and a more substantial income tax credit.

In the calculator provided below and to the right, you will find a breakdown of solar panel costs and benefits, calculated with an average $85.22 electric bill for Owatonna. More tailored results can be achieved by modifying the $85.22 to your usual bill amount.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $406 a year
Est. Price
$5,362
Savings from a 2kWthis system
  • Est. yearly production 2,897 kWh
  • Est. monthly savings $34
  • Full payback in 5 years
Environmental Impacts
  • Reduces CO2 emissions by 1.68 tons a year
  • Equivalent to planting 77 trees a year
  • Equivalent to driving 4,151 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $608 a year
Est. Price
$8,043
Savings from a 3kWthis system
  • Est. yearly production 4,346 kWh
  • Est. monthly savings $51
  • Full payback in 8 years
Environmental Impacts
  • Reduces CO2 emissions by 2.52 tons a year
  • Equivalent to planting 116 trees a year
  • Equivalent to driving 6,226 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $811 a year
Est. Price
$10,724
Savings from a 4kWthis system
  • Est. yearly production 5,795 kWh
  • Est. monthly savings $68
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 3.35 tons a year
  • Equivalent to planting 154 trees a year
  • Equivalent to driving 8,301 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,014 a year
Est. Price
$13,405
Savings from a 5kWthis system
  • Est. yearly production 7,244 kWh
  • Est. monthly savings $85
  • Full payback in 13 years
Environmental Impacts
  • Reduces CO2 emissions by 4.19 tons a year
  • Equivalent to planting 193 trees a year
  • Equivalent to driving 10,377 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,217 a year
Est. Price
$16,086
Savings from a 6kWthis system
  • Est. yearly production 8,692 kWh
  • Est. monthly savings $85
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 4.22 tons a year
  • Equivalent to planting 194 trees a year
  • Equivalent to driving 10,437 mi less a year

Owatonna Solar Panel Installation Incentives & Rebates | 2024

Rural small businesses and farms can benefit from the REAP Grant, which may cover between 80% and 100% of your solar energy or wind turbine installation costs. To determine your eligibility, use our REAP Grant eligibility tool.

Almost all residents are eligible for the 30% federal income tax credit for residential solar, which makes it a feasible option in various states in the country. A variety of regional and state programs are available to encourage solar energy adoption.

There are 13 solar rebate and incentive programs currently offered in Minnesota by multiple utilities and government bodies.

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.

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.

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?

For homeowners in Owatonna who expect to stay in their residence beyond the solar payback period, solar panels make an excellent investment. A 5 kW solar system in Owatonna, MN might save you an average of $7,047.8 over 20 years, with the break even point typically being 13 years.

The cost of not having solar panels in Owatonna, MN

In addition to forgoing the savings, the absence of solar panels or another backup energy source results in full dependence on your electric utility for your power needs. The news has recently pointed out that total reliance on your utility is not always ideal.

Annually, customers in Owatonna have encountered approximately 0.68 utility outages.Yearly, customers in Owatonna have encountered approximately 0.68 utility outages. On average, the length of an outage is 70.35 minutes. Major events like grid management errors, earthquakes or construction accidents can cause these durations to rise considerably.

A solar panel system, with or without a backup battery, could help mitigate the effects of future outages you might face.

Power Outages

Currently, 0 customers are being tracked in Steele County.

Learn more

Customers Out:

0

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

Your Energy Needs - While the upfront cost is greater, the price per watt decreases with larger solar panel systems. Homeowners often discover that setting up a solar system to fully cover their electric bill is a smart choice, leading to the most savings.

Make & Model - Similar to other products, solar panels come in a range of makes and models. Considering the brand preferences that your installer may have, it's crucial to pick a recommended contractor. The employment of high-quality materials is likely to yield a more positive long-term experience for buyers.

Solar Panel Type - It's clear why monocrystalline panels are now the standard in the industry. These panels cost more but yield more energy. Many installers in the industry utilize panels constructed from this material.

Your Property - Each property and residence is unique. Issues like trees, irregular terrain, or additional considerations may add to the complexity of the installation. Most solar installers currently use satellite imagery to assess your home and factor in these considerations into the preliminary cost estimate.

Labor Rates - Differences in employee wages across companies result in expenses that are transferred to the consumers. Reviews for work and customer service are frequently higher for businesses that pay higher wages.

Permitting & Interconnection - The local permitting and utility interconnection fees, which differ by region, will impact your final installation price. Quality installers will factor these costs into your first quotes to prevent unexpected expenses.

See what solar panels cost in other MN cities

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Who are the best solar installers in Owatonna?

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.

Owatonna, MN Solar Panel Cost FAQs

  • The typical cost per watt for solar panels in Owatonna, MN as of October, 2024 is $3.83/W. With the federal tax credit, the cost of a 5 kW solar panel system in Owatonna, MN drops to roughly $13,405.

  • If you live in Minnesota, you can find 13 rebates and incentives through different utilities and government agencies. On top of that, most individuals are eligible for the 30% federal income tax credit.

  • Cash payments offer the highest savings, yet multiple financing options now available for solar panels are financially beneficial as well. Many installers have partnerships with financing companies and will provide this information in your initial quotes.

  • Yes, the average 5 kW solar panel payback period in Owatonna, MN stands at 13 years, yielding average electricity savings of $7,047.8 over 20 years.
Matt Hope
Last Reviewed By: Matt Hope
Published: 2024-10-01