Solar power in Minnesota

Solar panel installations for homes and businesses are growing  across Minnesota. The state currently ranks 17th in the country for solar power, according to the Solar Energy Industries Association (SEIA). Michigan’s commitment to renewable energy through favorable policies has contributed to the increased adoption of solar power as well as created thousands of job opportunities.

If you live in Minnesota, consider installing residential solar panels. Investing in solar power for your home could help you save thousands on energy costs, reduce your carbon footprint, and contribute to a sustainable future. The average Minnesota solar system costs $28,210, but you can recover a significant amount through state and federal solar rebates and incentives. With many solar companies operating within Minnesota, residents and businesses have access to a wide range of options for harnessing the abundant solar resources in the region. Learn about the cost and benefits of going solar to help you decide whether it suits your energy goals.

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Cost of solar panels in Minnesota

The cost of solar panels is measured in dollars per watt of solar generation capacity. The average solar system in the U.S. costs $3.67 per watt, according to the Lawrence Berkeley National Laboratory. However, the cost of solar panels in Minnesota is often a bit more, at $4.03 per watt, per Find Energy’s data. That means installing the average 7-kilowatt (kW) solar system in Minnesota will cost roughly $28,210 before factoring in solar incentives.

The following table shows how Minnesota solar panel costs compare to national averages.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Minnesota solar save you money?

After you recover your installation cost through incentives and electricity bill savings, you start to see a return on investment from your solar system. Minnesota currently has a typical monthly electricity bill of $120.59, which you can greatly reduce or eliminate with a solar purchase. The solar payback period — or how long it takes to recoup the cost of your purchase — for Minnesota’s average home solar system is about 14 years.

Every household requires a different system size and number of panels depending on energy usage, roof size, and other factors. The following table shows a range of costs and panel counts for different system sizes.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Factors determining Minnesota solar panel costs

The best solar system for you is customized to your home and energy needs. Your exact solar system design and cost will depend on the following factors:

Based on data from the National Renewable Energy Laboratory, here is a breakdown of solar system component costs expressed as a percentage of the price per watt.

Source: NREL

The Balance of System (BoS) components include all the physical hardware required to operate the solar energy system. Soft costs represent the non-hardware expenses associated with the installation and operation of solar systems. These costs include customer acquisition, permitting, inspection, financing, design, engineering, customer support, and maintenance of the solar project.

The best Minnesota solar panel incentives or rebates

Installing solar panels is a significant investment. However, federal and local programs are available to significantly lower the cost of solar. 

The federal government offers a 30% solar tax credit for people who purchase solar systems. This tax credit — called the Residential Clean Energy Credit — allows you to recover thousands of dollars on your solar panel purchase when you file your taxes. Learn how to apply for the federal solar tax credit here. The credit applies for systems purchased on first or second homes from 2022 through 2032. It will decrease to 26% in 2033, 22% in 2034, and expire in 2035 unless Congress renews it.

A pro-solar policy at the state level has also helped increase solar installations. Minnesota solar incentives are available for residents to access when installing solar. Some local utilities have solar rebate programs for customers. You can also scan the Database of State Incentives for Renewables & Efficiency (DSIRE) to explore solar incentives in your area.

Solar incentives in Minneapolis

Minneapolis is the most populous city in Minnesota. Homeowners can benefit from the state and federal incentives mentioned on this page. Minneapolis also has local solar resources to help you save money. Energy providers in the area, including Xcel Energy and Connexus Energy, offer rebates to help you earn credits on your monthly energy bills or access community solar.

To receive Xcel Energy’s rebates, you must:

• Be an active Xcel Energy electricity customer
• Own the property or building with the installed solar system
• Have certified solar equipment
• Meet minimum personal liability insurance requirements
• Have a system size that does not exceed 120% of historical consumption
• Apply on Xcel Energy’s website

Connexus Energy’s programs vary from community solar gardens to net metering and Minnesota renewable energy partnerships. You can find more information regarding each incentive on the company’swebsite.

Solar incentives in Rochester

In addition to federal and state incentives, Rochester residents benefit from a solar rebate program offered by Rochester Public Utilities. This program can help make your solar installation more affordable.

Here’s what you need to know about the Conserve & Save Solar Rebate:

• $500 rebate for each new system larger than 2 kW
• Available on a first-come, first-served basis
• Can be used in conjunction with the 30% federal tax credit
• Customers must sign an interconnection agreement with Austin, Owatonna, or Rochester Public Utilities 
• Apply here

Why choose Minnesota solar power?

Each person interested in switching to solar in Minnesota may have their own specific motivations or energy goals. You may be wondering whether solar panels in Minnesota are worth it. Some of the most popular benefits of solar are reducing your electricity costs, increasing your energy independence, and lowering your home’s carbon footprint.

Money-saving benefits of going solar in Minnesota

Investing in solar panels can save you thousands of dollars in energy costs over the long term. Rather than paying for electricity from the traditional energy grid, you can generate your own power with solar panels. Your energy bill may drop if you rely on your panels for energy instead of the electricity grid alone.

Greater energy independence

Solar panels can help make your energy production more self-sufficient. Generating your power may protect you from price hikes during hours of high electricity demand. Most solar-powered homes remain connected to the power grid. Adding abatterycan allow you to store solar electricity when there is a power outages. However, batteries significantly increase the cost of your solar panel system.

Go green

Investing in solar panels can reduce your home’s carbon footprint. Solar power is a renewable energy sourceand doesn’t release greenhouse gasses when producing energy. By contrast, fossil fuel energy sources emit carbon dioxide into the atmosphere, contributing to climate change.

Solar financing options

Solar financing options include cash purchases, loans, leases, power purchase agreements (PPAs), and community solar. For most homeowners, buying solar panels is the most cost-effective option in the long run. It allows you to use the federal tax credit and local solar incentives. On average, owning solar panels also increase your home’s resale value by $15,000.

On the other hand, leasing solar panels or entering a PPAthrough a solar company may not provide the same cost savings, but both are more accessible options for many people because of their low upfront costs.

Minnesota solar panel companies

Hiring solar installers in Minnesota is not a problem thanks to the abundance of solar companies operating within the state. Finding the right solar panel installer begins with understanding your energy needs and what you want from a solar energy system. Once you’re ready, you can confidently search for a Minnesota solar business in your area with our help. Fill out the solar estimator on this page or call the number on your screen to get started.

Here are some of the top solar companies operating in Minnesota:

What to look for in a solar contractor

Obtaining competing quotes from various solar installers is critical to making an informed decision. Consider several important variables when selecting a company to install your solar panel system. 

• Licenses and certifications: Most solar installers have a licensed electrician involved in the installation. Some solar contractors are certified by the North American Board of Certified Energy Practitioners (NABCEP), demonstrating energy knowledge and hands-on experience. Check with your installer about solar its licenses and certifications before signing a contract. Most solar installers have a licensed electrician involved in the installation.
• Experience and customer service: Search for online solar reviews from previous customers with similar projects. You should work with an installer known for quality customer service, good equipment, and excellent workmanship.
• Quality solar panels and equipment: Check that your contractor uses products from reputable solar manufacturers with the best solar panels and inverters available.
• Warranty terms: Solar installers typically offer different warranties for components and labor. Examine the solar warranties from each potential installer and ask about maintenance and repair services to ensure your system continues operating efficiently.

Beware of free solar panels in Minnesota scam

Some solar companies offer free solar panels, but these deals are usually for solar leases and PPAs with monthly payments. Therefore, calling them free is misleading. Although many reputable solar installers exist, some use pushy or dishonest sales tactics. Because the solar energy industry is growing so quickly, there may also be unqualified solar installers completing lower-quality work. You can dodge potential scams or bad deals by avoiding anyone offering free solar panels in Minnesota.

Important solar installation factors to consider

Choosing solar energy has many advantages, but there are a few things to consider before investing. Review the following to help determine if your home is solar ready.

• Roof condition:Solar panels are most effective on south-facing roofs with a slope between 15 and 40 degrees. If your roof is old or damaged, you’ll want to repair or replace it before solar panel installation. Your installer can recommend a roof company or even offer roof service.
• Solar exposure: Solar panels operate best with direct sunlight. Shade may reduce your panels’ overall efficiency and energy production. Solar installers can help you identify potential shading obstacles and optimize the solar panel layout and positioning to minimize shading impact. If shading from trees is a concern, solar installers may recommend trimming or removing specific branches or trees that hinder sunlight.
• Neighborhood rules:Some homeowner’s associations (HOAs) have rules or requirements regarding solar panels. Fortunately, Minnesota law prevents HOAs from blocking solar installation on a property.