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#25 Solar ROI State

Solar Panel ROI in Minnesota (MN)

Minnesota averages 1,200 kWh per installed kW per year. At $14.2¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $4,341.

$14,210
System Cost (After Credits)
$4,341
25-Year NPV
13 years
Payback Period
$0.174/kWh
Solar LCOE

Solar Cost Breakdown in Minnesota

7 kW system (2.90/W)$20,300
Federal ITC (30%)-$6,090
Net Cost$14,210

Solar Production in Minnesota

Minnesota receives an average of 1,200 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 8,400 kWh in year one, declining by 0.5% annually due to panel degradation.

At Minnesota's average residential rate of $14.2¢/kWh with 4% annual escalation, first-year savings are $1,193. The solar LCOE of $0.174/kWh is -23% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Minnesota

1:1 net metering mandated. Made in Minnesota solar incentive for Xcel territory.

Solar FAQ for Minnesota

How much does solar cost in Minnesota?
A typical 7 kW residential solar system in Minnesota costs $20,300 before incentives. After the 30% federal ITC, the net cost drops to $14,210.
What is the solar payback period in Minnesota?
Based on the average MN utility rate of $14.2¢/kWh and local solar irradiance of 1,200 kWh/kW/year, a 7 kW system typically pays for itself in 13 years. The 25-year NPV is $4,341.
Does Minnesota have net metering?
1:1 net metering mandated. Made in Minnesota solar incentive for Xcel territory.
What is the LCOE of solar in Minnesota?
The levelized cost of solar energy in Minnesota is approximately $0.174/kWh, compared to the current average utility rate of $14.2¢/kWh. Solar electricity costs -23% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Minnesota?
Minnesota receives approximately 1,200 kWh of solar energy per installed kW per year. A 7 kW system produces about 8,400 kWh in its first year, enough to offset 80% of the average U.S. household's electricity consumption.

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Solar ROI in Similar States

South Carolina

NPV: $10,528 · Payback: 8yr
Rate: $13.2¢/kWh · #17 ranked

Texas

NPV: $10,835 · Payback: 9yr
Rate: $13.8¢/kWh · #18 ranked

Pennsylvania

NPV: $7,155 · Payback: 10yr
Rate: $16.2¢/kWh · #19 ranked

North Carolina

NPV: $4,876 · Payback: 11yr
Rate: $12.2¢/kWh · #20 ranked

Utah

NPV: $5,916 · Payback: 11yr
Rate: $11.2¢/kWh · #21 ranked

Iowa

NPV: $9,904 · Payback: 8yr
Rate: $13.8¢/kWh · #22 ranked

Get Your Minnesota Solar Analysis

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