How Much Do Solar Panels Cost in Minnesota? (2024 Savings Guide)

How Do Minnesota’s Solar Prices Compare to the National Average?

The average cost per watt for solar panels in Minnesota is well above average. Minnesotans typically pay around $3.60 per watt, which is about 9% higher than the national average of $3.33. That means that your money won’t go as far in Minnesota as it will in other states, at least on a watts-per-dollar basis.

However, Minnesota homeowners consume an average of 775 kilowatt-hours (kWh) of electricity per month, which is more than 100 kWh lower than the national average of 881 kWh. The lower your energy needs are, the smaller your system needs to be to offset them.

Since energy demands are below average in Minnesota, residents only need an 8 kW system, on average, whereas most Americans need 9.5 kW to offset their consumption. A lower system size means fewer panels are needed, which, in turn, means a lower installation cost.

On average, a solar array in Minnesota will cost around $1,000 less than a standard system in most other states, so your total cost is lower, despite the above-average per-watt price.

What Are the Main Factors of Solar System Costs in Minnesota?

Solar panel systems in Minnesota commonly cost between $12,600 and $27,720, which is a massive range. The price range is so large because there are many factors that determine what size system you need and how much power output is required to maximize your long-term savings. Some of the most impactful cost factors include the following:

• Your monthly energy needs
• Whether or not you install a solar battery
• The efficiency of your panels

We’ll explain how each of these factors makes a difference in your total system price in the following sections.

The Below-Average Energy Needs in Minnesota

One of the primary reasons solar panel costs in Minnesota are below average is that residents in the state use less electricity than most Americans. According to the Energy Industries Association (EIA), the typical monthly consumption in MN is 775 kilowatt-hours (kWh), compared to the national average of 881 kWh.

Since solar arrays are sized to meet your energy needs, a lower demand for electricity means you can get away with a smaller system and still have your energy rates offset. Minnesota residents need systems that are, on average, 1.5 kW smaller than homeowners in other states, which leads to a typical per-system savings of $5,400, based on per-watt prices in Minnesota.

We still recommend oversizing your system a bit to make sure that your electric bills are totally offset, but that still yields pretty significant savings over an oversized system in other areas throughout the country.

Net Metering and the Appeal of Solar Batteries in Minnesota

Another reason all-in system prices are below average in Minnesota — even when considering add-on products like solar batteries — is that many residents don’t opt to get batteries installed alongside their panels.

The state mandates net metering for all investor-owned utilities (IOUs), municipal utility companies and electric cooperatives, which means you’ll earn credits for all of the solar energy you produce beyond what your home needs. You can then use those credits to pay for electricity you need to pull from the grid when your panels aren’t generating sufficient energy, like at night or on cloudy days.

With the state’s net metering policy, most Minnesotans can avoid needing to pay the added cost of a battery — around $10,000 — and still heavily offset or even eliminate their energy bills.

Provided you choose high-efficiency panels that will make the best of your net metering program, we’d recommend you don’t get a battery unless you want the added benefit of being able to maintain electricity through power outages.

The Below-Average Amount of Sunlight in Minnesota

Finally, Minnesota residents see around 195 sunny days per year, which is below the national average of 205 sunny days. Since the sunlight availability is below average, it’s wise to invest in high-efficiency solar panels to maximize the amount of energy you can offset with your system. This is especially true since the net metering rate isn’t one-to-one with the retail rate for electricity.

We suggest paying more for high-end panels, like those from Maxeon, as these will produce more power for your home and give you the best chance of offsetting your utility bills. You might pay more for high-efficiency panels upfront, but over time, they will very likely save you money.

That does mean that solar panel installation costs in Minnesota will tend to be a little higher than they would be if you could get sufficient energy from lower-efficiency options. However, the smaller array size requirements should still save you some money.

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Additional Costs of Going Solar in Minnesota

Most solar customers know they’ll need to pay for solar panels and any major add-on products they might want, like solar batteries and electric vehicle (EV) chargers, but there are some other charges that most homeowners will need to pay that get overlooked. We’ll explain what some of these costs are for and how much they tend to be below.

• Additional solar equipment: In addition to solar panels, rooftop solar energy systems will also need mounting brackets, mounting hardware, inverters, wiring and conduit. These items can total a few hundred dollars in most cases, with the mounting brackets and separate inverters potentially totaling a few thousand dollars. Squirrel guards are also highly recommended, and many Minnesotan solar customers opt for snow guards as well, given the above-average amount of snowfall residents see each year.

• Equipment markup and administration fees: All solar installers in Minnesota charge different prices for the equipment they install, which can include some kind of product markup. Some companies will also charge administration fees for filling out permitting paperwork, filing for solar incentives and rebate programs and designing your system.

• Building permits: Every municipality in Minnesota requires that building permits be filed before any home solar energy system is installed. The fee for filing permits usually ranges from $50 to $250. For example, the City of St. Paul charges a flat fee of $138 for most residential solar projects.

• Interconnection application fee: Finally, your utility company will require an interconnection application to be filed before your system can be connected to the grid. In most cases, your installer will fill this out for you, but any application fees — usually between $25 and $150 — will be passed on to you.

Watch Below: How Well Will Your Solar Panels Still Work When Covered In Snow?

What Maintenance Costs Can Solar Owners Expect in Minnesota?

Thankfully, there are virtually no maintenance costs you’ll be on the hook for after installation in Minnesota. Some solar customers pay to have panel cleaning services completed, as this clears off pollen and debris and helps maximize the energy production rate of your panels. However, this isn’t a necessity, and the rainfall in the state should be plenty to keep your panels clean.

There is a chance you’ll run into repair costs for manufacturer defects and other issues. Thankfully, your solar panel warranty should cover the common issues. Generally speaking, the only cost you should face for your panels in Minnesota is the purchase price, provided you have solid warranty coverage to protect your solar investment.

The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.