Solar Panel Cost in Minneapolis, MN
Updated 2026 guide to solar panel prices, savings, and payback period in Minneapolis.
Estimated Solar Savings
Solar Panel System Costs in Minneapolis, MN
Below are estimated costs for different solar panel system sizes in Minneapolis, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $12,200 | -$3,660 | $8,540 | 5,840 kWh |
| 6 kWMost Popular | $18,300 | -$5,490 | $12,810 | 8,760 kWh |
| 8 kW | $24,400 | -$7,320 | $17,080 | 11,680 kWh |
| 10 kW | $30,500 | -$9,150 | $21,350 | 14,600 kWh |
| 12 kW | $36,600 | -$10,980 | $25,620 | 17,520 kWh |
What Affects Solar Panel Cost in Minneapolis?
The average cost of solar panels in Minneapolis, MN is approximately $305/watt before incentives. For a typical 6kW residential system, that means a total cost of about $18,300 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $12,810.Minneapolis homeowners typically see a payback period of 8 years and save an estimated $30,000 over 25 years.
Factors that affect your cost in Minneapolis:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary within the Minneapolis metro area
- Local permits: Permitting costs and requirements vary by municipality in Minneapolis
- Incentives: State and local programs can significantly reduce your out-of-pocket cost
Solar Incentives Available in Minneapolis
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Minnesota homeowners can combine the 30% federal ITC with state solar incentive programs for substantial savings.
State & Local Incentives
Xcel Energy Solar Rewards
RebateXcel Energy provides production-based incentives for residential solar customers in their service territory.
Solar Renewable Energy Credits
SRECMinnesota solar system owners can earn and sell SRECs to meet the state's solar energy standard.
Made in Minnesota Solar Incentive
RebateAdditional incentives available for solar installations using Minnesota-manufactured panels.
Property Tax Exemption
Property TaxSolar energy systems are exempt from property tax increases in Minnesota.
Net Metering
Minnesota requires utilities to offer net metering. Xcel Energy and other utilities provide credits for excess solar generation at rates determined by the Public Utilities Commission.
AvailableSRECs
Minnesota's Solar Energy Standard requires Xcel Energy to generate 1.5% of retail sales from solar. The Solar Rewards program provides REC payments to residential solar customers.
Est. Value: $15-$30 per SREC
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Solar Panel Cost FAQ - Minneapolis, MN
The average cost of solar panels in Minneapolis is approximately $3.05 per watt before incentives. A typical 6kW residential system costs about $18,300 before the 30% federal tax credit, bringing the net cost to around $12,810.
The typical payback period for solar panels in Minneapolis is approximately 8 years. After that, you'll enjoy free electricity for the remaining 15-20+ years of your system's life, saving an estimated $30,000 over 25 years.
Minneapolis homeowners can take advantage of the 30% federal solar tax credit, which reduces your system cost by 30%. Minnesota also offers net metering, SRECs, and various state-level incentive programs. Check our incentives page for the complete list.
Minneapolis homeowners can save an estimated $30,000 over 25 years by going solar. Actual savings depend on your electricity usage, system size, roof orientation, and available incentives. With electricity rates averaging $0.14/kWh in Minnesota, solar provides significant long-term savings.
Solar Costs in Other Minnesota Cities
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