Minnesota solar panels: The complete guide in 2026
Data updated Jan 23, 2026
Interested in going solar? You'll need to install a 12.48 kW solar panel system to cover the average electric bill in Minnesota, which will cost you about $40,525.
Cost for an average system in Minnesota
| Cash price | $40,525 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $18,033 | 18 Years | 90% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Minnesota
Despite the long winters, solid net metering programs make solar a worthwhile investment for plenty of Minnesotans.
Factor in local incentives, and you can cut the cost of solar by thousands of dollars, speeding up your payback periods and increasing the value of your investment.
Here's what you need to know about going solar in The North Star State.
Cost
How much do solar panels cost in Minnesota?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Minnesota homeowner needs a 12.48 kW solar panel system to cover their electricity needs, which comes out to $40,525 before incentives. Prices range from $34,446 to $46,604, but Minnesota also has some great local incentives.
While this may sound high, it will pay off in Minnesota. That's why over 21,000 Minnesota homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 18.2 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Minnesota?
Incentives help bring solar's price tag down considerably in Minnesota. Here are the major ones to know about:
| Incentive | Average savings in Minnesota | Description |
|---|---|---|
Minnesota Housing Fix Up Home Improvement Loan Program | Depends on the cost of your solar panels | Affordable loans for home-upgrade projects with fixed interest rates; no down payment required |
Xcel Energy’s Solar*Rewards Program | $1,800 – $15,000 | Financial incentive program to receive annual payments from Xcel Energy in exchange for your Renewable Energy Credits (RECs) |
Minnesota solar sales tax exemption | 6.875% of your system’s cost | You don't need to pay any sales tax on new solar panel systems in Minnesota |
Is net metering available in Minnesota?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Minnesota's net metering program is solid. Excess solar generation is credited to customers at the average utility energy rate, which is slightly less than what you pay per kWh, but still favorable. Overall, net metering can boost the value of your investment considerably over the years.
Get the details on net metering in Minnesota or see specific programs below:
Equipment
Equipment quality
Solar panels continue to get more efficient, meaning they produce more power per square foot. In 2025, the most popular solar panels can produce about 450 watts of electricity in full sunlight—you’ll want panels with at least that much power output to get the most out of your installation.
It’s also important to choose a solar inverter setup that works for your roof’s layout.
And if you plan to install a solar battery, pick one that can easily integrate with that inverter.
While premium equipment can result in sticker shock, it typically saves you more money in the in the long run: The highest-quality panels degrade at a slower rate and maintain more of their power output for longer, and the best warranty terms often guarantee up to 40 years of coverage in case you need repairs or replacements.
Companies
Who are the best solar installers in Minnesota?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Minnesota:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Minnesota
- Minnesota Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Community Solar farms in Minnesota
Can't install solar on your roof? Check out local solar farms to save money.
- Minnesota Commerce Department
Learn about MN solar programs from the state government.
- Minnesota Public Utilities Commission
Read more about how utility companies work in MN.
- Minnesota Electricity Profile (EIA)
Learn about MN energy production and prices.
- MN State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in MN.
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