In short: Minnesota homes paid about 17.5 cents per kWh in July 2026, a little under the U.S. average (EIA). Small solar systems still earn full retail-rate credits, solar equipment is free of sales and property tax, and outages averaged about 3.7 hours in 2024. Winter storms and strong wind rate very high in FEMA’s index. Plan for winter first.
Minnesota at a glance
- Residential electricity price: 17.45¢/kWh in July 2026, against a U.S. average of 18.31¢. A year earlier it was 16.92¢, and the January to July 2026 average was 16.25¢ (EIA Electric Power Monthly, September 2026; preliminary).
- Outages (2024): 220 minutes per customer including major events, 92 minutes without. Customers averaged 1.25 interruptions, or 0.90 without major events (EIA-861).
- Solar resource: Minneapolis averages 3.86 kWh/m² a day (NASA POWER, 2001–2020). That is about 1,130 kWh per installed kW a year, our rough estimate. Tilted panels usually do better, and snow cover costs some winter output.
- Net metering: yes. Systems under 40 kW are credited at the average retail energy rate, at Xcel, Minnesota Power, co-ops and municipal utilities alike (Minnesota PUC).
- Plug-in (balcony) solar law: none as of October 2026.
- EVs and charging: 59,800 battery EVs and 24,800 plug-in hybrids through 2025. The state had 3,269 public ports, 1,073 of them DC fast, at 1,161 locations (AFDC, October 3, 2026).
- Main utilities: Northern States Power Co–Minnesota, Xcel Energy’s Minnesota utility, serves about 53% of customers. ALLETE (Minnesota Power), Connexus Energy and Dakota Electric Association each serve around 5% (EIA-861, 2024).
- Weather hazards (FEMA NRI, December 2025): winter weather and strong wind are very high. Cold wave and tornado are relatively high, ice storm and heat wave relatively moderate, wildfire relatively low.
- Planned shutoffs (PSPS): Xcel Energy’s Minnesota wildfire plan uses enhanced powerline safety settings, and Public Safety Power Shutoffs in extreme-risk conditions.
Backup power in Minnesota
Minnesota’s grid is fairly reliable on ordinary days, about an hour and a half of outage per customer in 2024. Big storms more than double that to about 3.7 hours. Dividing total minutes by interruptions, the average outage lasted close to three hours (our arithmetic on EIA’s figures). What makes Minnesota different is the season. A three-hour outage in July is an inconvenience. A three-hour outage at −10 °F with a furnace that needs electricity to run is a real problem, and FEMA rates both winter weather and cold waves high here.
- Keep the heat on: gas furnaces and boilers need power for the blower, inducer fan, controls and circulator pumps. A home battery or a generator wired to those circuits is the most useful backup a Minnesota home can have. Check the loads with the battery backup calculator or the generator sizing tool.
- Summer storms: severe weather, from tornadoes (relatively high) to straight-line winds (very high), brings summer outages too, often just when a basement sump pump is needed most.
- Apartments and short outages: a portable power station covers phones, lights, internet and a CPAP. Keep it indoors and charged. Lithium batteries lose capacity in a freezing garage.
In winter it is tempting to keep the generator out of the snow. Don’t. The Consumer Product Safety Commission says to run it outdoors only, at least 20 feet from the house, with the exhaust pointed away from doors, windows and vents, and never in a garage or under a closed porch. Clear snow from around the exhaust, and keep battery-powered carbon monoxide alarms on every floor. Have a licensed electrician install the transfer switch or interlock.
Solar in Minnesota
Solar in Minnesota gets a modest price per kWh but good rules. Each installed kW makes roughly 1,130 kWh a year by our estimate. Under-40 kW systems are credited at the average retail rate, so each kW is worth about $197 a year at July 2026’s 17.45¢ (an estimate). A 6 kW system would make about 6,780 kWh, worth about $1,180 a year. Most of that output comes from April to September, and the retail-rate credits even out the seasons on your bill.
Minnesota also takes two state taxes off the cost:
- Sales tax exemption: solar energy systems are exempt from the 6.875% state sales tax (Minn. Stat. 297A.67, subd. 29). A 2026 tax review recommended changes, but the exemption is still in effect.
- Property tax exemption: solar energy systems are exempt from property tax, and the land is classified as if the system were not there (Minn. Stat. 272.02, subd. 24).
Utility programs such as Xcel’s are separate from state programs and change often. Ask your utility directly, and check the program page before you sign, because amounts change. In 2025 the Legislature debated bills to pay co-op and municipal customers a lower avoided-cost rate for excess solar. We have not found that any became law, but if a co-op or a city utility serves you, ask how it credits exports today. The federal 25D credit ended for systems completed after December 31, 2025.
To judge a quote, divide its net price by the estimated yearly savings to get a simple payback. Use the solar potential tool and the solar cost guide, read how net metering works, and see every program on incentives and in the solar hub. Minnesota has no plug-in solar law, so a plug-in kit still goes through your utility’s interconnection rules.
Home batteries in Minnesota
Batteries are still rare on Minnesota rooftops. EIA’s 2024 count shows only 88 of 22,621 residential net-metered solar systems paired with storage, well under 1%. That makes sense under retail-rate net metering: the grid already acts like a free battery for your bill. In Minnesota, a battery’s real job is keeping the heat and sump pump running during an outage. Size it for a winter night, not a summer day. Compare options on the battery cost page and in the batteries hub. The Minnesota Department of Commerce runs an on-site energy storage incentive: $250 per kWh, up to $7,000, for a battery paired with solar, for customers outside Xcel Energy’s territory (Xcel runs its own battery incentive). It had about $1.42 million left on August 17, 2026; check the program page, as funds run out.
EV charging in Minnesota
Below-average electricity makes home charging cheap in Minnesota. At about 30 kWh per 100 miles (a fueleconomy.gov-style assumption) and 17.45¢/kWh, it costs about $5.25 per 100 miles, or roughly $630 for 12,000 miles a year. That is an estimate: cold weather raises use per mile, and cabin heating and battery warming add more. The public network has about one port for every 18 battery EVs (59,800 BEVs, 3,269 ports), and about a third of those ports are DC fast chargers, useful on long drives up north. Run your numbers with the EV charging cost calculator.
Drive on another fuel? See every alternative fuel station in Minnesota: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.
Federal help is gone: 30D ended September 30, 2025, and 30C ended for chargers placed in service after June 30, 2026. A Level 2 charger needs a 240 V circuit from a licensed electrician, with a permit. A garage installation also helps the car in winter. See the EV charging hub.
Off-grid, small wind and micro-hydro
Minnesota has real wind. NASA’s 50 m average is about 7.1 m/s at the center of the state and 6.3 m/s near Minneapolis, well above the Department of Energy’s rough 4.5 m/s threshold for a grid-tied small turbine. Our hint is “good at open rural sites”: open farmland may work, while a wooded lake lot usually won’t. That is an estimate, so measure first. For cabins, solar plus a battery plus a generator is the reliable off-grid combination, since winter sun is short. We have no state micro-hydro data. Read the off-grid guide, wind energy and hydroelectric power.
Licensing and permits in Minnesota
Minnesota licenses electrical contractors and electricians statewide through the Department of Labor and Industry (DLI) and the Board of Electricity, and solar installs require licensed electrical work. Check a license in DLI’s license lookup. Building permits come from your city or county, and electrical inspection may be handled by the state or by your city. Before solar or a battery goes live, your utility must approve the interconnection.
Local guides in Minnesota
Utilities, rates, outage records, permit offices and local programs for each area:
Where we cover in Minnesota
- Twin Cities: Minneapolis, St. Paul, Bloomington, Plymouth, Maple Grove, Eden Prairie, Woodbury, Lakeville
- Rochester: Rochester
- Duluth: Duluth
- Central Minnesota: St. Cloud, Mankato
Local pages will follow as we verify local information and installers.
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Minnesota energy FAQ
Does Minnesota have net metering?
Yes. Systems under 40 kW are credited at the average retail energy rate, at Xcel, Minnesota Power, co-ops and municipal utilities (Minnesota PUC). Bills debated in 2025 would have lowered the credit for excess generation at co-ops and municipal utilities. We have not found that any passed, but ask your utility for its current rules in writing.
Do solar panels raise property taxes in Minnesota?
No. Minn. Stat. 272.02, subd. 24, exempts solar energy systems from property tax, and residential land is classified without regard to the system. Solar equipment is also exempt from the 6.875% state sales tax under Minn. Stat. 297A.67, subd. 29. Both were in effect when we checked in October 2026.
Does solar work in a Minnesota winter?
It works, but makes much less. Short days and snow cover cut winter output, and most of the roughly 1,130 kWh per kW a year (our estimate for Minneapolis) comes from spring to fall. Retail-rate credits from summer surpluses help even out the bills. For winter backup, size a battery or generator for the heating system.
Does Xcel Energy shut off power for wildfire risk in Minnesota?
Xcel’s Minnesota wildfire mitigation program includes Public Safety Power Shutoffs in extreme-risk conditions, plus enhanced powerline safety settings that can make lines trip off more readily. The risk is concentrated in fire-prone areas, and wildfire is rated relatively low statewide (FEMA). Sign up for your utility’s outage alerts.
How much does it cost to charge an EV at home in Minnesota?
About $5.25 per 100 miles at July 2026’s 17.45¢/kWh and 30 kWh per 100 miles, or roughly $630 a year for 12,000 miles. That is an estimate, and winter driving uses more energy per mile. Check your utility for EV or time-of-use rates.
Sources
Prices: EIA Electric Power Monthly, Tables 5.6.A and 5.6.B, September 2026 release (July 2026, preliminary). Reliability, utilities and solar counts: EIA-861, 2024. Sunlight and wind: NASA POWER, 2001–2020. Hazards: FEMA National Risk Index, December 2025. EVs and charging: AFDC, registrations through 2025 and station counts read October 3, 2026. State rules: Minnesota Public Utilities Commission (distributed energy), Minnesota Statutes 297A.67 and 272.02 (Office of the Revisor), Department of Labor and Industry, and Xcel Energy’s Minnesota wildfire mitigation page, checked October 3, 2026. Small wind: U.S. DOE Small Wind Guidebook.