Minnesota Solar Guide 2026
Everything Minnesota homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about Minnesota solar
Minnesota has surprisingly strong solar production despite cold winters — cold temperatures actually boost panel efficiency. Xcel's Solar*Rewards program adds ~$0.08/kWh for 10 years on top of net metering.
Peak sun hours
4.5
hrs/day avg
Avg electricity rate
14.0¢
per kWh
Median install cost
$2.95/W
before incentives
Typical payback
10 yrs
8 kW system, avg usage
Typical 8 kW system in Minnesota
Annual production
13,140 kWh
Year-1 savings
$1,840
System cost (est.)
$23,600
No federal tax credit — Section 25D expired December 31, 2025.
Minnesota Net Metering Policy
Full retail net metering
Minnesota mandates full retail net metering for systems up to 40 kW. Xcel Energy and other utilities must credit excess at retail rate. Minnesota has one of the strongest net metering policies in the Upper Midwest.
Minnesota Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Property tax exemption on added home value
- ✓Sales tax exemption
- ✓Xcel Solar*Rewards program (~$0.08/kWh for 10 years)
Top Utilities in Minnesota
Interconnection timeline: 4–8 weeks
Calculate your Minnesota solar economics
Our calculators are pre-filled with Minnesota data. Run any tool below.