Cost of Solar Panels in Minnesota: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Minnesota:

  • Average Cost Per Watt: $2.84
  • Cost of Average System: $16,813*
  • Cost of Energy Without Solar: $40,266
  • Payback Period: 13 Years**
  • Lifetime Savings of Going Solar: $17,546

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/22/2022

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Find Cost Savings on Solar in Minnesota

As a homeowner in Minnesota, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Minnesota
  2. What Determines the Cost of Solar Panels in Minnesota?
  3. Minnesota Solar Incentives
  4. FAQ: Solar Panel Cost Minnesota

 

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Cost of Solar Panels in Minnesota

Based on market research and data from our top solar brands, we’ve found that the average cost of solar panels in Minnesota is $2.84 per watt, which is above the national average of $2.66 per watt. The typical size of a solar panel system in Minnesota is 8 kilowatts, which would cost roughly $22,720, or $16,813 after the federal tax credit.

Keep in mind that these figures are only estimates, and the price of installing solar photovoltaic (PV) systems for your home may look quite different based on factors unique to you. We recommend getting quotes from at least three installers and comparing them to find the best deal.

Solar Panel System Installation Cost in Minnesota

Depending on the size of your system and the company you choose, we’ve estimated that a solar panel installation in Minnesota would cost somewhere between $14,000 and $29,000 before applying any tax credits or solar incentives.

To offset the average monthly electric bill of $102, a Minnesota resident would need roughly an 8-kilowatt solar panel system, which comes out to about $16,813 after factoring in the 26% federal tax credit. 

We’ve included the average prices for solar renewable energy systems in Minnesota before and after the tax credit in the table below:

Size of Solar Panel System Minnesota Solar Panel Cost Cost After Federal Tax Credit
5 kW $14,200 $10,508
6 kW $17,040 $12,610
7 kW $19,880 $14,711
8 kW $22,720 $16,813
9 kW $25,560 $18,914
10 kW $28,400 $21,016

Interested to learn about the best solar companies in Minnesota? We’ve vetted a number of installers that offer affordable, high-quality systems. Click the button below to learn more

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What Determines the Cost of Solar Panels in Minnesota?

Aside from system size, there are a few factors that play into the total cost of a home solar system in Minnesota. Below we give a brief overview of each major pricing component.

Solar Equipment

The type and size of solar equipment you need for your Minnesota home will be the biggest factor when it comes to determining how much your solar panel installation will cost. While the average Minnesota home installs an 8-kilowatt solar system, that may not be the right size for your home. It depends on your specific energy needs. 

The only way to truly determine what solar energy system size you need is to get a personal assessment from a reputable solar company. However, you can get a rough idea of how many solar panels you’ll need by looking at your past utility bills, your available roof space and the amount of sunlight your home gets.

It’s not only the size but the type of solar panels you’ll need that will shape the cost of your solar panel installation. There are three main types of solar panels in the market — monocrystalline, polycrystalline and thin-film — and each comes with a different price tag. You may find yourself choosing one type of solar panel over another based on the needs of your home in Minnesota.

For example, if you don’t have a ton of roof space, you’ll probably need solar panels with a higher efficiency, like monocrystalline solar panels. Monocrystalline panels put out more kilowatt-hours per square foot compared to other solar panels, and for that reason, they’re more expensive. 

When determining the cost of your solar panel installation, you’ll also need to consider whether you’ll be purchasing any additional equipment, like batteries or EV chargers.

Solar Financing

The method you use to pay for your solar system installation will affect the overall cost as well. Each solar company offers different types of solar financing options and rates. If you have a longer pay-off period for your solar loan, you’ll likely be paying more in interest, raising the aggregate cost. 

On the other hand, if you pay more — or all — of the cost of your solar panel installation up front, you’ll have less interest to pay. We recommend putting down as much as you can up front to maximize your savings.

Solar Installation Company

The good news is there are a lot of solar companies in Minnesota (at least 47 solar installers in the state, according to the Solar Energy Industries Association), which means they’ll likely offer sales and deals to try to win customers over. Don’t be afraid to shop around to find the company that’s going to offer the best solar installation options for your home. If you’re looking for the best solar companies in Minnesota, check out some of our top-vetted solar companies.

Minnesota Solar Incentives

To reduce the upfront cost of solar panels in Minnesota, there are a number of state, federal and local incentives you can take advantage of. Here are the highlights:

Minnesota Solar Incentive How it Affects the Cost of Solar Panels in Minnesota
Sales Tax Exemption Solar electric equipment purchased in Minnesota is 100% exempt from the state sales tax. 
Property Tax Exemption Although installing a solar PV system will increase your property value, Minnesota has made sure your property taxes won’t rise as a result.
Net Metering Through net metering programs, which municipal and public utilities are required to offer in Minnesota, you can get compensated by your utility company for your panels’ excess energy production.
Local Solar Rebates & Incentives Make sure to look up any additional rebate programs or credits available from your city or utility company. For example, Minnesota Power, the City of Minneapolis and Rochester Public Utilities all offer their own solar rewards.
Federal Solar Tax Credit The federal solar tax credit, also known as the solar investment tax credit (ITC) is currently valued at 26% of your total system cost. It will decrease to 22% in 2023 and, unless renewed by Congress, disappear completely for residential systems come 2024.

Best Solar Panel Brands and Installed Solar System Costs in 2022

Whether you’re installing a DIY solar panel system or having one of the best solar companies in Minnesota handle the details, you’ll want to make sure you choose the best solar panels for your home

Based on our research and data, we’ve found the following to be the best solar panel models on the market:

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

As you look for the best residential solar panels, it’s important to consider the specific needs of your home and your solar power system.

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People Also Ask 

EcoWatch FAQ: Solar Panel Cost in Minnesota

Here are the most common questions we see from homeowners in Minnesota who are looking to go solar:

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.