Calculate how much you can save on your Xcel Energy bill with solar panels

Average 25 year solar savings for a Xcel Energy customer: $52,454

Average solar panel cost: $15,808 - $19,320*

Estimate solar panel cost and savings based on your location, roof and power use.

*Solar panel cost varies by location, solar panel mqanufacturer, system size and the amount of electricity your home uses.

Adding solar panels and switching rate plans can lower your Xcel Energy Minnesota electric bill

Updated: October 22, 2020

There are three ways you can reduce your Xcel Energy bill: changing your habits, switching your rate plan, and adding solar panels.

You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.

The second thing you can do is switch your rate plan. Xcel Energy offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.

Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.

Solar panel cost calculator

How much can I reduce my Xcel Energy Minnesota bill by switching to a different rate plan

For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Xcel Energy Minnesota each year for no reason.

Finding out what's available to you is as simple as a phone call or email to Xcel Energy Minnesota. Even a small savings can be worth it.

Are solar panels worth it for Xcel Energy Minnesota customers?

Yes! With Xcel’s Solar Rewards program, available low income rebate, and sales and property tax exemptions, home solar panels make a lot of sense for Xcel customers in Minnesota. Xcel’s net metering rate also allows you to get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate as retail rates, and roll over to your next monthly bill.

Does Xcel Energy Minnesota offer full 1 for 1 net metering credits for exported solar power

Yes, Xcel Energy Minnesota offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.

In the case of Xcel Energy Minnesota, Time of Use (TOU) pricing applies. You will earn an average of $0.22 for power exported at peak rate times, and an average of $0.04 for power exported at off-peak times.

In addition to net metering, Xcel offers its Minnesota customers a program called Solar*Rewards, which pays a small additional amount for every kWh of solar energy your panels generate. The current payment is $.07/kWh for systems up to 40 kW in size, which can save the average Minnesota solar owner an extra $700 per year.

What incentives, tax credits and rebates are available to Xcel Energy customers for installing solar?

The major financial incentive currently available until the end of 2020 is the 26% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.

Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.

Here is every incentive you may be eligible for as a Xcel Energy customer:

Table 1: Incentives
Upfront Incentives Value*
Residential Renewable Energy Tax Credit (Federal) -$6,171
Net Metering (State)

Utilities must offer net metering and compensate at the average retail utility energy rate.

Varies
Wind and Solar-Electric (PV) Systems Property Tax Exemption (State)

Solar property is exempt from property tax assessment.

Varies
Solar Energy Sales Tax Exemption (State)

The purchase of PV generation equipment is exempt from sales tax

Varies
TOTAL -$6,171

*Based on 10.18 kW system, average installation cost $23,735

How much does installing solar panels save the average Xcel Energy Minnesota residential customer?

If you input the details for a Xcel Energy customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.

The solar savings possible for you as a Xcel Energy customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.

Here is a monthly and lifetime solar savings estimate for the same relatively typical Xcel Energy customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.

How much do residential solar panels cost for Xcel Energy customers?

Solar prices near you

Cost range of local prices

$19,865-$24,279

Net profit (savings less system cost)

$33,842-$41,363

Payback period

10.4-12.7 years

Recommended size for the selected utility bill

10.1kW

Solar panel cost calculator

Detailed information about your estimate

Table 2: Estimate details

System Size (for 100% usage offset)

10.18 kW

Annual Power Generation

14,226 kWh

Pay-back time (assuming Cash purchase)

6.3 Years

Internal Rate of Return (IRR) on Investment

13.4%

Gross cost

$23,735

Total Upfront Incentives and Rebates

-$11,668

Net Cost of System after rebates and incentives

$12,069

Total Cost of Utility Power Avoided over 25 years

$64,523

Please note that the investment return figures do not include the possible increase in property value.

What are the environmental impacts of Xcel Energy Minnesota customers installing solar panels?

While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Xcel Energy Minnesota customer installing a 10.18 kW solar system on their property:

A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place

Saves you

$2,098

on average per year

Reduces CO2 emissions

7.04

tons per year

Equivalent to planting

49 trees

per year

Equivalent to driving

15,578 mi

less per year

CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.

What factors affect the price of solar panels for Xcel Energy Minnesota customers?

The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.

It is common to see really good systems, using quality brands of equipment, being sold for around $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 26% federal solar tax credit.

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