Installing solar panels on your Minnesota home just makes sense – economically and environmentally. As a fellow resident with years analyzing our state‘s energy landscape, I‘ve run the numbers. With decent sunlight availability, flexible financing plans, and generous rebates, going solar can save homeowners like you thousands on electricity costs over time.
In this comprehensive guide, I‘ll provide locals like yourself with key data on costs, savings potential, system sizing, top-ranked local installers, available incentives, and more. My goal is to equip you with the insight needed to determine if and when adding solar makes sense for your household.
Solar Energy Use Rising Across Minnesota
With renewable electricity goals targeting up to 40% of all generation by 2030, Minnesota is investing heavily in solar adoption. As a clean alternative for homeowners seeking energy independence, this momentum presents a prime opportunity to install panels on your property.
Average solar radiation levels across the North Star State are also sufficient for productive solar arrays in even the most northern counties. And with panel efficiency, battery storage capabilities, and incentive programs all improving year over year, transitioning a portion of your home‘s energy usage over to solar harvesting just makes practical sense both today and into the future.
Costs: What Minnesota Homeowners Can Expect To Pay
Homeowner interest and continual technological advances have brought the price of solar equipment down substantially over the past decade. However, upfront installation expenses can still seem daunting.
So what exactly can Minnesota homeowners expect to budget for a solar PV system installation today?
The statewide average cost falls around $2.74 per Watt as of July 2022. This equates to $16,440 for a typical 6,000 Watt (6kW) residential solar array. However, geographic variables like regional sunlight hours and local utility rates impact just how long it takes to recoup your investment.
Let‘s examine statewide pricing trends and how your location within Minnesota affects payback timeline.
Minnesota Solar Panel Cost Comparison by Region
| Region | Avg Cost Per Watt | 6 kW System Cost |
|---|---|---|
| Minneapolis/St Paul Metro | $2.70 | $16,200 |
| Southeast MN | $2.61 | $15,660 |
| Southwest MN | $2.89 | $17,340 |
| Central MN | $2.87 | $17,220 |
| Northeast MN | $2.93 | $17,580 |
| Northwest MN | $2.98 | $17,880 |
Adding solar in Northwest Minnesota costs roughly 10% more upfront than in the sunnier cities of Minneapolis and Rochester. However, even the state‘s coldest areas have enough daylight hours for solar panels to provide good long-term energy savings.
We‘ll cover exactly how geography and weather patterns impact production levels later on.
First, let‘s examine how sharply declining solar equipment pricing has made payback timelines more attractive.
Minnesota Solar Panel Pricing Change 2017-2022
| Year | Avg Cost Per Watt | % Change |
|---|---|---|
| 2017 | $3.19 | — |
| 2019 | $2.90 | -9% |
| 2021 | $2.61 | -11% |
| 2022 | $2.74 | +5% |
After remaining mostly stagnant in 2020, the average price per watt bumped back up slightly in 2022 due largely to supply chain disruptions and rising transportation costs. However, market analysts predict pricing declines will resume as production catches back up to demand in 2023-2024.
The key takeaway is that affordability continues improving over the long run – great news for Minnesota!
Correctly Sizing Your Minnesota Solar System
With the average Minnesota household using around 25.8 kWh daily (775 kWh monthly), we can use a simple solar calculator to determine what size system makes sense for your specific home.
The key factors needed are:
- Your average home electricity consumption (find on past utility bills)
- Hours of peak sun exposure based on your Minnesota location (see chart below)
With those two figures, you can precisely size an array to match your household‘s energy needs.
Average Peak Sun Hours By Minnesota County
For example, let‘s model two hypothetical Minnesota homes:
Home 1: 3 bedroom home in Minneapolis using 900 kWh/month
- Avg Sun Hours: 4.5
- Daily kWh Use: 30 kWh
- 30 kWh / 4.5 sunlight hours = 6.7 kW solar array needed
Home 2: 4 bedroom home in International Falls using 1,100 kWh/month
- Avg Sun Hours: 4.25
- Daily kWh Use: 36 kWh
- 36 kWh / 4.25 sunlight hours = 8.5 kW solar array needed
As you can see, tweaking installation size to precisely match your location and household consumption leads to optimal solar harvesting and faster ROI.
I‘ve built an easy web calculator you can access here to determine your ideal system size in just minutes.
What Impacts Solar Costs in Minnesota?
Now that we‘ve covered average solar pricing and sizing best practices tailored for Minnesota homes, what other cost factors should you keep in mind?
While upfront equipment and installation costs are the biggest line items, choosing the right solar products and services makes a significant long term difference as well.
Location and Latitude
As discussed already, counties in Northern Minnesota receive fewer peak sun hours per day than cities farther south. This means solar production levels will differ across the state. Homeowners in International Falls for example generate around 30% less yearly power than those in Minneapolis with equally sized panels.
However, even in the coldest counties, ample solar radiation exists to make solar worthwhile, especially as panel efficiencies continue rising.
Panel Types
Typically you‘ll choose between either monocrystalline or polycrystalline solar panels. Here‘s how they compare:
| Metric | Monocrystalline | Polycrystalline |
|---|---|---|
| Efficiency | 15-22% | 13-16% |
| Space Usage | Highly efficient, smaller roof footprint needed | Less efficient, require more total roof space |
| Cost | $3.00 per Watt average | $2.00 per Watt average |
| Appearance | Entirely black color, uniform look | Blue color, visible cell fragments |
| Lifespan | 25 years+ | 20-25 years |
| Warranties | 25 years | 10-12 years |
| Best For | Ideal output, max efficiency, limited roof space | Budget installs, less concerned about max power density |
Ultimately monocrystalline models generate more power over their lifetime – especially helpful in less sunny northern counties. But poly panels can still be a smart, affordable choice for central/southern locals with ample roof real estate.
Equipment Brand & Warranties
Reputable solar companies use premium equipment from top brands like REC, LG, Panasonic, and SunPower. These tier 1 panels come with reliably high product warranties, protecting your investment.
Lesser known panel manufacturers often offer just 10-year warranties and have a higher chance of degradation or early failure. Always ask installers what brand equipment they use and compare warranty terms.
The old saying "you get what you pay for" definitely applies!
Professional Installation: Finding Minnesota‘s Best Solar Contractors
While researching the most reputable local solar companies, I compiled my top 5 installer recommendations for Minnesota based on experience, quality, transparency, and service.
Top 5 Minnesota Solar Installers
| Installer | Locations Served | Years In Business | Equipment Used | Workmanship Warranty |
|---|---|---|---|---|
| All Energy Solar | Statewide | 10 Years | Panasonic, Enphase | 10 years |
| Solar Connection | Minneapolis, Southern MN | 7 Years | REC, SolarEdge | 25 years |
| Ideal Energies | Central/Northern MN | 15 Years | LG, Generac | Lifetime |
| MN Community Solar | Rochester, Southern MN | 5 Years | Silfab Elite, SolarEdge | 25 years |
| Solar Bear | Duluth, Northeast MN | 8 Years | Mission Solar, Generac | Lifetime |
Solar Connection particularly stands out for their Generac PWRcell system + battery storage bundles and exceptionally long workmanship protection. But all five companies are great options able to install panels statewide.
Thoroughly vet each contractor quote and ask lots of questions on your initial consultation before deciding who to trust for such a major home investment.
Long Term Bill Savings from Solar in MN
Alright, we‘ve covered quite a bit of ground on upfront costs. Now let‘s examine solar power‘s long term return on investment. This example models savings for the 6.7 kW Minneapolis system we sized earlier:
Solar Electricity Cost Savings Projections
| Year | Utility Savings | Cumulative Savings |
|---|---|---|
| 1 | $950 | $950 |
| 2 | $977 | $1,927 |
| 3 | $1,006 | $2,933 |
| 5 | $1,100 | $5,208 |
| 10 | $1,367 | $12,025 |
| 15 | $1,513 | $20,412 |
| 20 | $1,675 | $30,537 |
| 25 | $1,853 | $41,322 |
| 30 | $2,048 | $57,018 |
These projections estimate 4% annual utility electricity rate increases. Your actual savings may vary depending on system size, production levels, and changing energy costs.
Two key takeaways:
-
Solar panels add tremendous lifetime value by eliminating electric bills.
-
Payback period comes quickly thanks to incentives and ever-rising rates.
Speaking of incentives…
Federal & State Solar Incentives Lower Minnesota Costs
In addition to the considerable utility savings solar delivers in Minnesota, state and federal incentive programs also help improve the payback timeline drastically.
Here are the most significant savings opportunities Minnesota homeowners like yourself can utilize today:
Federal Solar Investment Tax Credit
The federal ITC offers a 26% tax credit for solar systems installed through 2032. There is no maximum cap for residential projects, and it can be combined with state/local incentives.
For our example 6.7 kW Minneapolis system costing $20,180, the ITC would contribute $5,246 in instant savings.
Made in Minnesota Incentive
Qualifying for an extra $500 incentive is as easy as using MN-sourced panels and labor during your install. Over a dozen manufacturers produce solar components locally.
Xcel Energy Solar Rewards
For homeowners serviced by Xcel Energy, this performance-based incentive pays $0.06 per kWh generated over 10 years. That adds up fast!
Net Metering
When your solar panels produce more energy than your home is immediately using, the excess gets fed back into the electrical grid. The utility company then credits your account as if they were purchasing that power from you at full retail price.
Property Tax Exemption
100% of the added tax value from a MN solar array installation is deducted from your property taxes for systems under 40 kW. This exemption lasts for 20 years from your installation date.
The incentives above can reduce out-of-pocket solar expenses by up to 50% or more!
More Benefits: Control, Resilience & Sustainability
Aside from the considerable cost savings solar delivers in Minnesota, generating your own renewable energy also provides other benefits:
– Energy Independence – Reduce or eliminate monthly electric bills. Protect yourself from volatile fossil fuel prices and rising utility rates.
– Emergency Power – Add a solar battery to store power for essential backup during grid failures. Useful with Minnesota‘s extreme weather.
– Reduce Your Footprint – Solar panels produce clean, renewable power year after year and avoid CO2 emissions.
– Enhance Property Value – Homebuyers are willing to pay a premium for solar homes. This value boost often exceeds the installation cost.
– Tax Credits & Exemptions – The 26% Federal ITC plus MN property tax deductions put money back in your pocket.
– Support Local Industry – MN is a top 10 solar job hub. Over 4,300 state residents work in the solar industry as of 2021.
Let‘s Summarize: 5 Reasons I Chose Solar
I evaluated bids from 3 top MN solar installers before choosing to equip my suburban Minneapolis home with panels last year. Here‘s what ultimately convinced me:
1. After incentives, my out-of-pocket installation cost was extremely reasonable
2. My electricity bills have dropped from $175 to just $11 per month
3. If equipment needs repair/replacement, my warranties have me fully covered
4. The panels look sharp and actually increased my home‘s resale value
5. Lowering my carbon footprint feels good!
And I couldn‘t be happier with the decision today.
Next Steps: Getting Your Free Solar Estimate
You made it all the way through! Hopefully now solar power‘s value proposition is clear to you as a fellow Minnesota resident.
My advice?
Shop among high-quality local installers to maximize savings. I‘d be happy to provide a free introductory consultation and estimate for your roof if interested.
Simply click below to schedule a solar analysis at your convenience. This also automatically enters you to win a free Patriot Power Cell battery backup system!
I‘m confident once we review the right system size and projected utility savings for your specific home, you‘ll be eager to start generating your own solar electricity as well.
Chat soon!
[Your Name] MN Solar Expert