Solar panels in Minnesota: cost, payback and the rules that matter
Minnesota homes pay 16.3¢ per kWh for electricity, the 24th highest of 51, up 4.2% in a year. A typical home needs 16 panels. With no federal tax credit they pay for themselves in about 13.8 yrs.
Four facts that decide solar in Minnesota
1. The sun. One kilowatt of panels makes about 1,353 kWh a year in the median Minnesota city, from 1,277 in Duluth to 1,371 in St. Cloud.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 16.3¢ in Minnesota today.
3. What your utility pays for exports. Most Minnesota utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Minnesota.
Minnesota's homes
2,307,955 households; 72.2% own their home. 1,548,767 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1979; 19.4% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Minnesota home
Solar in every Minnesota city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Minneapolis | 4.6 | 1,352 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| St. Paul | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Rochester | 4.6 | 1,359 | 41° | 6.7 | 13.7 yrs | 22.5 yrs | 11.6 |
| Bloomington | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Duluth | 4.4 | 1,277 | 41° | 7.1 | 14.6 yrs | 23.9 yrs | 12.4 |
| Brooklyn Park | 4.6 | 1,351 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.8 |
| Woodbury | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Lakeville | 4.6 | 1,354 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Plymouth | 4.6 | 1,352 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.8 |
| Blaine | 4.6 | 1,351 | 42° | 6.7 | 13.8 yrs | 22.6 yrs | 11.8 |
| Maple Grove | 4.6 | 1,351 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.8 |
| St. Cloud | 4.7 | 1,371 | 42° | 6.7 | 13.7 yrs | 22.4 yrs | 11.6 |
| Eagan | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Burnsville | 4.6 | 1,354 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Coon Rapids | 4.6 | 1,351 | 42° | 6.7 | 13.8 yrs | 22.6 yrs | 11.8 |
| Eden Prairie | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Apple Valley | 4.6 | 1,354 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Edina | 4.6 | 1,353 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| Minnetonka | 4.6 | 1,352 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
| St. Louis Park | 4.6 | 1,352 | 41° | 6.7 | 13.8 yrs | 22.6 yrs | 11.7 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Minnesota average home. $3.00/W, cash, 25 years.
Rule changes that affect Minnesota
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in Minnesota
How much do solar panels cost in Minnesota?
A 6.7 kW system, the size the average Minnesota home needs, costs about $16,750 to $25,125 before incentives in 2026.
Is solar worth it in Minnesota?
In the median Minnesota city, solar pays for itself in about 13.8 yrs if exported power earns the retail rate, or 22.6 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Minnesota?
We know of no statewide income-tax credit for home solar in Minnesota; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Minnesota home need?
About 16 panels of 420 watts for the state-average 712 kWh a month. Sunnier cities need fewer: St. Cloud gets 1,371 kWh per kW a year, Duluth 1,277.