The average residential electricity rate in Minnesota (MN) is $0.1488 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is significantly below the national average of $0.1805/kWh, ranking Minnesota #24 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Minnesota household consumes 827 kWh per month, resulting in a monthly electric bill of approximately $123 and annual electricity costs of about $1,476.
Minnesota has been a leader in community solar programs, allowing renters to subscribe to shared solar arrays.
This comprehensive guide covers Minnesota electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Minnesota residential electricity rates have increased 12% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Minnesota ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1328 | $0.1322 | +0% |
| 2022 | $0.1390 | $0.1492 | -7% |
| 2024 | $0.1450 | $0.1680 | -14% |
| Apr 2026 | $0.1488 | $0.1805 | -18% |
Minnesota has a regulated electricity market. The primary providers are: Xcel Energy, Minnesota Power, Otter Tail Power.
Minnesota generates electricity from: Wind 30%, Nuclear 23%, Natural gas 22%, Coal 14%, Solar 6%, Other 5%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Minnesota household uses 827 kWh/month.
Xcel Energy Minnesota offers several rate options including time-of-use. Community solar garden subscriptions are widely available.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Minnesota receives 4.2 peak sun hours/day. A 6 kW system produces ~7,542 kWh/year, saving ~$1,122/year. With the 30% federal ITC, payback is typically 6-9 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Minnesota (MN) | $0.1488 | $123 | Regulated |
| Iowa (IA) | $0.1418 | $131 | Regulated |
| North Dakota (ND) | $0.1092 | $132 | Regulated |
| South Dakota (SD) | $0.1288 | $142 | Regulated |
| Wisconsin (WI) | $0.1598 | $120 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.