Best Solar Companies in Minnesota

Average solar panel costs in Minnesota typically range between $10,333 and $32,794. This doesn’t include an energy storage battery, which sometimes costs as much as the panels ($7,000 to $18,000). The size of your system and what incentives you’re eligible for are the other biggest factors in your total solar cost.

Average solar panel costs by system size in Minnesota

How can I pay for solar panel installation?

Getting solar panels is like buying a car. Most people pay cash, finance or lease. A solar loan works like most other types of loans — there is an application process, and you pay it back over time with interest. Leasing solar equipment is a good option if you don’t want to get a loan or be responsible for maintaining a system.

Solar panels are designed to last 25 to 30 years.

You get the most savings from going solar if you purchase your system upfront, but the significant initial investment leads many people to get a solar loan. If you finance, it’s worth it if your monthly loan payment is cheaper than your current monthly utility bill.

» SOLAR PANELS: Lease vs. buy

Are solar panels worth it in Minnesota?

Solar panels can be a worthwhile investment in Minnesota. For some, it’s all about saving money. For others, solar is worth it for the environmental benefits.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

The financial benefits of solar panels may not be as significant as in states with more sunshine or higher electricity costs, but there are still significant long-term savings. On average, Minnesotans with solar panels can avoid $18,463 in total utility costs over 25 years.

We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

» STILL NOT SURE? Solar energy pros and cons

In our experience, the best solar energy companies have a few things in common: great reviews, transparent contracts, reliable equipment, NABCEP-certified installers and comprehensive warranties. These hiring best practices will help you choose an installer that delivers top-quality system performance.

• Check certifications: Solar panel installers must be licensed by the Minnesota Department of Labor and Industry. You can confirm this through the Solar Business Directory. Minnesota Department of Commerce suggests Clean Energy Project Builders, Minnesota Solar Energy Industries Association (MnSEIA).
• Read reviews: Avoid companies with recurring red flags: Complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews.
• Get quotes: Get multiple solar quotes to compare prices and services. Be cautious of companies that provide significantly lower estimates than others (this may indicate lower quality).
• Ask questions: Consider whether you want a solar storage battery, electric vehicle (EV) charger or a monitoring system to ensure optimal output. It’s also smart to ask about critter guards in most parts of Minnesota. Make sure you understand everything about the payment terms, warranty or ongoing services.

» MORE: Best solar companies in Minneapolis

Solar equipment is 100% exempt from sales tax in Minnesota. Several local rebates are also available: Minnesota Power’s SolarSense rebate program is good for up to $10,000 (or 60% of installed costs, whichever is less). Austin Utilities, Dakota Electric, Rochester Public Utilities and Owatonna Public Utilities offer solar panel rebates of up to $500.

The federal solar investment tax credit (ITC) is still the most significant financial incentive for a lot of homeowners. The ITC reduces your federal tax liability by 30% of the cost of your solar energy system.

The ITC expired at the end of 2025.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $5,000 in taxes, the ITC reduces what you owe to $2,000. The ITC is a nonrefundable credit, meaning you can only claim up to the amount of taxes you owe. Any unused portion carries over to the next tax year. However, it is possible to get a refund check if the credit makes it so that you overpaid during the year.

» EXPLORE: Minnesota solar incentives