St. PaulSolar Incentives 2026: Rebates, Tax Credits & Net Metering
St. Paul homeowners stack the 30% federal tax credit and Xcel Energy net metering. At 4.5 peak sun hours a day, a home with a $110/month bill (about 786 kWh) needs roughly a 7.3 kW system — 19 panels — and pays back in about 9.7 years.
Solar Incentives Available in St. Paul
Solar incentives in St. Paul come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Minnesota does not add a state income tax credit, so the federal credit is the main up-front incentive. Third, Xcel Energy sets the local rules for crediting the solar power you export.
Xcel Energy serves St. Paul with full net metering, and Minnesota's Solar*Rewards adds per-kWh production payments.
How Much Solar St. Paul Homes Produce
St. Paul gets 4.5 peak sun hours a day, so each 1 kW of panels produces about 1,314 kWh per year here. A 7.3 kW system — the size that fits a typical $110/month Xcel Energy bill — generates roughly 9,592 kWh annually, worth about $1,343 in avoided electricity in year one and more as rates rise.
Xcel Energy Net Metering in St. Paul
Xcel Energy credits excess solar generation from St. Paul homes under Minnesota's full retail-rate net metering (~100% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Minnesota net metering rules →
How Much Do Solar Panels Cost in St. Paul?
At Minnesota's 2026 average of $2.85/watt, the 7.3 kW system most St. Paul homes need runs about $20,805 before incentives. The 30% federal credit takes off $6,242 — landing the net cost near $14,564, with payback around 9.7 years.
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