Solar in Minnesota

Key Solar Metrics

Avg Electricity Rate

15.8¢/kWh

Solar Production Potential

4.8 peak sun hours

Annual Production

919 kWh/kW

Net Metering

Incentive Programs

5 active programs

Top Incentive

Minnesota Solar Sales Tax Exemption

Permitting

Mixed

Major Utilities

Northern States Power Co - Minnesota

Solar Landscape in Minnesota

Minnesota's electricity market includes both investor-owned utilities and cooperative/municipal providers. Major utilities with solar programs include Northern States Power Co - Minnesota. Residential customers should check with their specific utility provider for available solar incentive programs, interconnection requirements, and export credit rates.

Permitting

Minnesota follows local jurisdiction permitting for residential solar installations. Permitting requirements and timelines vary by county and municipality. Homeowners should contact their local building department for specific permit requirements, fees, and inspection schedules. Some jurisdictions in Minnesota have adopted streamlined solar permitting processes to reduce installation timelines.

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Solar Incentives & Rebates

Some incentive data is provisional and subject to verification. Programs may change — check official sources before making decisions.

State Programs

Minnesota Solar Sales Tax Exemption

Full exemption from 6.875% state sales tax on solar equipment.

PercentageTPO Eligible

Minnesota Net Metering (Full Retail)

Full retail rate net metering for systems up to 40 kW. Credits roll over monthly with annual true-up at average retail utility energy rate.

Minnesota Property Tax Exemption for Solar

Solar energy systems are exempt from property tax in Minnesota for residential installations.

TPO Eligible

Minnesota Solar Access Rights

Minnesota Statute 500.30 provides for solar easements. HOAs cannot unreasonably restrict solar installations.

Utility Programs

Xcel Energy Solar*Rewards

Xcel Energy Solar*Rewards performance-based incentive of $0.03/kWh for 10 years (~$2,900 total for typical system). Income-qualified customers may receive higher rates.

Per kWhProvisional

$0.03/kWh

Minnesota Net Metering

Policy Type: Net Metering
Credit Type: Full Retail Rate
System Size Cap: 40 kW
Annual Credit Rollover: Yes
Effective Date: January 1, 1983

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Run the Numbers for Minnesota

Solar in Minnesota costs $2.81–$3.40 per watt

National average: $3.36/W

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