Electricity Rates in Minnesota
Average residential electricity cost, utility comparison, and solar savings potential for Minnesota homeowners.
Minnesota Electricity Cost Overview
The average residential electricity rate in Minnesota is $0.14 per kWh, which is 12% below the national average of $0.16/kWh.Minnesota homeowners pay an average of $115 per month for electricity, based on typical usage of 824 kWh per month.
Electricity rates in this state have been trending upward over the past decade, following national patterns of rising energy costs. As rates continue to increase, solar panels become an increasingly attractive way for homeowners to lock in their energy costs and achieve long-term savings.
Major Electric Utilities in Minnesota
| Utility Company | Avg Rate ($/kWh) | Customers | Est. Monthly Bill |
|---|---|---|---|
| Xcel Energy (Northern States) | $0.14 | 1.3M | $115 |
| Minnesota Power | $0.12 | 150K | $99 |
| Great River Energy | $0.13 | 170K | $107 |
How Solar Compares to Minnesota Electricity Rates
Without Solar
- Monthly bill: $115
- Annual cost: $1,380
- 25-year cost: $34,500
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $83
- Annual savings: $996
- 25-year savings: $30,000
- Rate: Locked in for 25+ years
Electricity Rates FAQ - Minnesota
The average residential electricity rate in Minnesota is $0.14 per kilowatt-hour (kWh), which is 12% below the national average of $0.16/kWh. The average monthly electric bill is approximately $115.
With solar panels, Minnesota homeowners can reduce their electricity costs by approximately 72%, saving around $83 per month or $30,000 over 25 years. The 30% federal tax credit further reduces the upfront cost.
The largest electric utilities in Minnesota include Xcel Energy (Northern States), Minnesota Power, Great River Energy. Rates vary between utilities, so your exact cost depends on your provider and usage.
Yes, electricity rates in Minnesota have been increasing over time, following national trends of 2-5% annual increases. This upward trend makes solar panels an increasingly attractive investment since they lock in your energy costs for 25+ years.
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