Key insights
A typical residential solar system costs $16,100 to $32,200 in Minnesota.
Jump to insightIt takes solar panels approximately 9.9 years to pay for themselves in Minnesota.
Jump to insightOver 25 years, Minnesota homeowners with solar panels avoid $54,092 in total utility costs on average.
Jump to insight6 factors to consider before getting solar panels in Minnesota
ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including several from Minnesota. Here’s what to consider before making the switch.
1. Solar panel installation costs
Average solar panel costs in Minnesota are comparable to the national average. A typical residential solar panel system costs $42,182 in Minnesota. However, adding a solar storage battery can add $7,000 to $18,000 to your total system costs. On the higher end, Csaba in Plymouth said their system cost $27,000.
Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. As of publishing, Minnesota’s average cost per watt is $3.22.
Average solar panel costs by system size in Minnesota
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $16,100 | $19,320 | $22,540 | $25,760 | $28,980 | $32,200 |
| Minneapolis | $16,250 | $19,500 | $22,750 | $26,000 | $29,250 | $32,500 |
2. Your current energy consumption
It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.
A typical Minnesota household needs a system with a capacity of 13.1 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.
Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.
Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. If you also have an electric vehicle, solar panels will save you even more.
“The system has saved us quite a bit,” Kerry in Saint Paul told us. “We started noticing right away in the summer we had much lower energy bills. We’ve had months that our whole energy and gas from Xcel was $10 a month so we were generating more.”
3. Minnesota solar incentives
The 30% federal residential solar tax credit has expired, but Minnesota still offers several ways to lower the cost of solar, including rebates, tax breaks, financing and utility incentives.
SolarSense: Income-qualified Minnesota Power customers may get a rebate of up to $5,000.
Solar*Rewards: Eligible Xcel Energy customers can earn payments based on how much solar energy their system produces.
Tax breaks: Qualifying solar equipment is exempt from sales tax, and solar generally won’t increase your property tax bill.
Battery rebates: Qualifying solar-plus-storage systems may receive battery incentives of up to $5,000 to $7,000, depending on the utility.
What to know about net metering in Minnesota
Net metering lets Minnesota homeowners earn credits or payments for extra solar power sent to the grid.
For most residential systems under 40 kW, excess power can generally be credited at the utility’s average retail energy rate. Rates, rollover rules and payment options vary by utility, so check your provider’s policy before installing solar.
» EXPLORE: Minnesota solar incentives
4. How long you plan to stay in your house
It takes years for electric bill savings to make up for the initial cost — about 9.9 years on average in Minnesota. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.
Solar panels last 25 to 30 years.
A Zillow study found that, on average, houses with solar panels sell for 4.1% more.
But don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.
5. How you pay
It’s great if you can pay for the whole thing upfront. A lot of folks can’t. That’s when solar loans and leases come in.
Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month. Eligible homeowners may finance up to $60,000 through state-supported loan programs.
Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.
Monthly costs: Solar payments vs. savings
Think of going solar in terms of your monthly costs. Ideally, your solar loan payment plus any remaining electric bill should cost less than what you paid for electricity before going solar.
» SOLAR PANELS: Lease vs. buy
6. The solar company you hire
Pushy sales tactics and promises that don’t match reality are common solar complaints, so research the company and verify any claims before signing a contract.
Also ask what kind of energy monitoring is included. Brian in Carver said he wished he’d known extra equipment was needed to track how much electricity came from his solar panels versus the grid.
“I don't have an easy way to determine how much electricity I'm consuming from the regular grid versus how much I'm getting from my solar,” Brian told us.
Before signing, ask what your system will monitor, what you can see in the app and whether whole-home energy monitoring costs extra.
Pros and cons of solar panels in Minnesota
Solar energy has numerous advantages, including a smaller carbon footprint and reduced energy bills. It’s also important to consider the drawbacks.
Pros
- Long-term savings
- Better for the environment
- Low maintenance costs
- May increase home resale value
Cons
- Upfront costs
- Seasonal production variations
- Potential roof leaks
Is my house a good candidate for solar panels?
Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:
- How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Minnesota averages 3.5 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
- What is the size and angle of my roof? Minnesota (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
- What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.
Find solar companies in Minnesota
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Minnesota’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Blue Raven Solar | Learn More | 3.0 |  | Cash, loan, lease, PPA | 2014 |
 Green Home Systems | Learn More | 1.0 | | Cash, loan | 2017 |
 Project Solar | Learn More | 3.0 | | Cash, loan | 2020 |
 ShopSolar | Learn More | 4.3 |  | Cash, loan | 2018 |
Minnesota solar FAQs
What are the benefits of solar panels in Minnesota?
Solar panels have several benefits in Minnesota:
Cheaper energy bills: Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
Better for the environment: Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
More energy independence: Embracing solar paves the path toward true energy independence. It especially works out for people in areas susceptible to power outages.
Higher home resale value: Installing solar panels can increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
What are the drawbacks of solar panels in Minnesota?
Solar panels have a few drawbacks in Minnesota:
Solar equipment is expensive: Even with rebates and other financial incentives, solar panels are expensive. It’s even more expensive if you want a solar battery for energy storage. Solar battery cost are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates decline in Minnesota. That way, you can store energy at home instead of tapping into the local grid when you need to.
Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
» MORE: Solar energy pros and cons
How much can I save with solar panels?
On average, Minnesota homeowners with solar panels avoid $54,092 in total utility costs over 25 years. It’s a common misconception that solar panels will completely eliminate your monthly power bill — this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.
» EXPLORE: Where solar savings go the furthest
Will hail damage my solar panels?
Hail can damage solar panels, but you shouldn’t let that deter you from installing them. Most panels can withstand small hail. Also, your homeowners insurance might cover the cost to fix any damage caused by hail.
How long does it take to install solar panels in Minnesota?
Installation times depend on a range of factors, especially seasonality and supply chain issues. The actual installation might take only a day, but it takes time to design, plan and activate the system.
Is it cheaper if I install solar panels myself?
It’s potentially cheaper to install your solar energy system yourself, but it’s difficult and dangerous if you don’t know what you’re doing, especially for a large residential project.
» DIY SOLAR PANELS: Pros and cons
Bottom line: Is going solar in Minnesota worth it for you?
Going solar in the Land of 10,000 Lakes isn’t just a green move; it's often a smart money move. With electricity costs continuing to rise, more homeowners find solar power is financially worth it in the long run.
Solar costs vs. savings: Minnesota and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Iowa | $19,680 | $32,800 | 13.19 kW | $3.28 | $55,871 |
| Minnesota | $19,320 | $32,200 | 13.1 kW | $3.22 | $54,092 |
| North Dakota | $25,380 | $42,300 | 17.38 kW | $4.23 | $65,178 |
| South Dakota | $20,760 | $34,600 | 16.84 kW | $3.46 | $53,388 |
| Wisconsin | $18,360 | $30,600 | 13.42 kW | $3.06 | $56,047 |
Article sources
- DSIRE, "Minnesota Programs." Accessed Sept. 9, 2026.
- EnergySage, "The cost of solar panels in Minnesota." Accessed Sept. 9, 2026.
- Solar Energy Industries Association, "Minnesota Solar." Accessed Sept. 9, 2026.
- SolarReviews, "How much do solar panels cost in Minnesota?" AccessedSept. 9, 2026.
- U.S. Environmental Protection Agency, “Solar Power Purchase Agreements.” Accessed Sept. 9, 2026.
- Minnesota Public Utilities Commission, “Net metering and compensation.” Accessed Sept. 9, 2026.
- The Office of Minnesota Attorney General Keith Ellison, “Residential Solar Systems.” Accessed Sept. 9, 2026.
