Solar panel cost in Minnesota

The average cost for an installed residential solar system in Minnesota is currently $12,157 after claiming the 26% federal solar tax credit. This is $2.74 per watt.

Solar prices near you

Cost range of local prices


Net profit (savings less system cost)


Payback period

5.5-6.7 years

Recommended size for the selected utility bill


Chart 1: Distribution curve of MN residential solar cost 2020
SolarReviews average

Note: Prices after 26% Federal Solar Tax Credit

MN solar panel cost calculator

Cash flow graph based on cash purchase of a 5.2kW system

Minnesota solar power overview

Homeowners have the potential to save big when they install rooftop solar in Minnesota, thanks to the federal tax credit and the state’s incentives for solar, including a net metering policy and several rebate programs.

Are solar panels worth it in Minnesota

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

5¢ /kWh

If you don't get solar

21¢ /kWh

(forecast avg Minnesota electric rates over the next 25 years)

Minnesota solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses is the federal tax credit. Right now, the federal tax credit is equal to 26% of the total installed costs of installing a solar system. At the end of 2020, the amount of the credit will fall to 22%. This means that in order to maximize your savings potential, the best time to go solar in Minnesota is now.


Net metering

Minnesota has a state-wide net metering policy that applies to all investor-owned utilities, municipal utilities, and electric cooperatives. 

Each utility must compensate customers for net excess solar generation at the average retail utility energy rate. Compensation for excess energy may take the form of actual payment, like a check, or as a credit on the homeowners utility bill. 


Utility incentives 

Many of Minnesota’s utility companies offer solar rebates to their customers. One of the most popular is Xcel Energy’s Solar Rewards program. Through this program, Xcel will pay customers an additional $0.07 per kilowatt hour of solar energy produced in exchange for any renewable energy credits the system produces. 

Property tax exemptions

Minnesota has a property tax exemption for solar panel systems. Under the Property Tax Exemption for Solar Generating Systems, 100% of the assessed value of the solar system is exempt from the homeowner’s property taxes. 


Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Sales Tax Exemption

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Top 10 solar panel brands installed in Minnesota in 2020

Average cost of solar panel installation in Minnesota by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $11,960 $12,797
5kW $14,320 $15,322
6kW $16,428 $17,578
7kW $18,977 $20,305
8kW $22,080 $23,626
9kW $23,913 $25,587
10kW $26,300 $28,141

Best solar companies in the main cities of Minnesota

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Minnesota

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter where the direct current (DC) electricity is converted into alternating current (AC) electricity that can be used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the power of the sun. There’s no utility to fall back on. This means the solar installation needs to power the home not just during the day, when the sun is shining, but after dark as well.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Minnesota in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Minnesota will fall during 2020.

Can you buy DIY Solar Panel Kits and install them yourself in Minnesota?

Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar. 

Reasons for this include:

  • The permitting and inspection process for the utility, the state, and municipalities can be quite complex.
  • The installation work is both dangerous and difficult, with electrical work having to be performed at heights.
  • Often times, solar electricity customers will be charged a premium for DIY installations, which can limit savings.
  • In some states, a solar system needs to be installed by a qualified solar contractor in order to take advantage of incentives. In Minnesota, a solar installer must also be a master electrician or journeyman electrician in order to be considered qualified. Utilities and incentive programs may have additional requirements.


SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US.

Buy DIY solar panel kits online

Prices don’t include installation, permits or inspections

How much electricity do solar panel systems generate in Minnesota?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 35-degree pitch roof Minnesota will generate 1,150kWh of peak DC (direct current) capacity per year per 1kW in Minnesota.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in Minnesota?

The advantage of installing solar panels in Minnesota is that there are great utility incentives available. Also, the state requires utilities to offer full retail credit for excess solar generation. 

Not to mention, you can take advantage of the 26% federal tax credit, as well.

There are not many disadvantages to installing solar panels in Minnesota. If you’re a Minnesota homeowner, you’ll be kicking yourself if you don’t get solar while all of these incentives are still around. Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Minnesota solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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