Solar in Minnesota: is it worth it in 2026?
Minnesota is a slow-payback state: solar works, but it takes well over a decade to earn back what you paid. Three things decide that: electricity prices rank 22nd of 51, its sun ranks 34th, and exported power earns full retail credit. Of the 51 states and DC, Minnesota has the 22nd-fastest payback for a typical home.
The average home here pays about $118 a month for 744 kWh. A 6 kW system sized for that home would knock about $1,266 off the first year's bills, 90% of the total.
Checked November 12, 2026
What makes solar pay off in Minnesota
- Size the system to cover your yearly use. With full net metering, power you export is worth as much as power you use, so timing matters less than in most states.
- The price per watt decides it. At 15.8¢ per kWh, the price per watt matters as much as the sun. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 16 years.
Payback by system size
An average Minnesota home uses about 8,928 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 52% | 3.5 kW | $8,995 | 4,666 kWh | 14 years | $11,999 |
| 75% | 5 kW | $12,850 | 6,665 kWh | 13 years | $18,266 |
| 97% | 6.5 kW | $16,705 | 8,665 kWh | 13 years | $24,533 |
| 127% | 8.5 kW | $21,845 | 11,331 kWh | 14 years | $26,077 |
The 5 kW system pays back fastest, but the 8.5 kW system saves the most over 25 years. Assumes exported power earns full credit, prices rise 2.5% a year and one inverter replacement.
How Minnesota credits power you send to the grid
Full credit (net metering)
Retail net metering for systems under 40 kW.
By utility
- Xcel Energy (Minnesota): Retail net metering for systems under 40 kW; excess is paid at the average retail rate.
Before you sign in Minnesota
Check the license. Look the company up with the Minnesota Department of Labor and Industry, by its legal name or license number, and ask for the electrician's license number too.
Minnesota has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Minnesota compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Minnesota | 15.8¢ | 1,333 | 13 years | Full credit (net metering) |
| Wisconsin | 18.1¢ | 1,334 | 14 years | Monthly netting |
| Iowa | 13.6¢ | 1,367 | 14 years | Full credit (net metering) |
| South Dakota | 13.3¢ | 1,409 | 23 years | No statewide rule |
| North Dakota | 11.8¢ | 1,294 | 18 years | Monthly netting |
Questions about solar in Minnesota
How long does solar take to pay for itself in Minnesota?
About 13 years for a typical 6 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Minnesota have net metering?
Yes. Retail net metering for systems under 40 kW.
Is there a solar tax credit in Minnesota in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 6 kW system in Minnesota, that credit was worth about $4,626 and brought payback down to 8 years, instead of 13 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Minnesota?
Not for savings. Minnesota credits exported power at the full retail rate, and storing power in a battery loses about 10% of it, so a battery saves nothing on the bill. It can still be worth it for backup during outages: a 13.5 kWh battery costs about $15,650 installed in 2026.
Is plug-in solar legal in Minnesota?
There's no plug-in solar law yet in Minnesota, so your utility may treat a kit like any rooftop system.
How do I check a solar company's license in Minnesota?
Look the company up with the Minnesota Department of Labor and Industry (dli.mn.gov) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; Solar Energy Nerds: net metering by state, 2026; EnergySage: median quoted price, first half of 2026.