Electricity Rates in Minnesota (2026)
National average: 16.72¢/kWh · Source: EIA, January 2026
Minnesota Benefits from a Diverse Generation Mix
Minnesota generates electricity from a balanced mix of wind (about 25%), nuclear (Prairie Island and Monticello, about 25%), coal (declining, about 20%), and natural gas (about 20%), with growing solar capacity. At 15.34 cents/kWh, rates are slightly below the national average. Xcel Energy is the dominant utility, serving the Twin Cities metro area and much of the state.
Wind Energy Is a Strength for Minnesota
Minnesota's location on the Great Plains gives it strong, consistent wind resources, especially in the southwest and central regions. Wind generation has grown steadily and provides a zero-fuel-cost hedge against natural gas price volatility. Xcel Energy has committed to 100% carbon-free electricity by 2050, with wind and solar providing most of the growth.
Calculate Any Appliance Cost in Minnesota
Most Expensive Appliances to Run in Minnesota
Monthly costs at 15.34¢/kWh using typical wattage and hours:
| Appliance | Watts | Hrs/Day | Monthly Cost |
|---|---|---|---|
| Tankless Water Heater | 27000W | 1h | $124.25 |
| Electric Furnace | 10000W | 8h | $368.16 |
| Electric Car Charger (Level 2) | 7200W | 4h | $132.54 |
| Hot Tub | 6000W | 4h | $110.45 |
| Clothes Dryer | 5000W | 1h | $23.01 |
| Electric Water Heater | 4500W | 3h | $62.13 |
| Garage Workshop Heater | 4000W | 4h | $73.63 |
| Central Air Conditioner | 3500W | 8h | $128.86 |
| Electric Oven | 2500W | 1h | $11.51 |
| Dishwasher | 1800W | 1h | $8.28 |
| Hair Dryer | 1800W | 0.15h | $1.24 |
| Electric Pressure Washer | 1800W | 0.5h | $4.14 |
| Space Heater | 1500W | 8h | $55.22 |
| Electric Baseboard Heater | 1500W | 8h | $55.22 |
| Infrared Heater | 1500W | 6h | $41.42 |
Tips for Reducing Your Electricity Bill in Minnesota
- Xcel Energy offers extensive rebates through their Energy Efficiency programs, including significant incentives for heat pumps (especially important in Minnesota's cold climate).
- Minnesota winters are long and cold. Cold-climate heat pumps (rated to -15F or colder) work well in the Twin Cities and southern Minnesota. In northern Minnesota, a dual-fuel system (heat pump + gas backup) may be more practical.
- Minnesota has a strong net metering program. Solar panels produce well in Minnesota's sunny summers, and the state's solar incentive programs help offset the moderate per-kWh rate.
- Community solar gardens are popular in Minnesota. If you cannot install rooftop panels, you can subscribe to a community solar project and receive bill credits.
Frequently Asked Questions About Minnesota Electricity
The average Minnesota household pays about $120-$150 per month. Winter heating is typically the largest energy expense, and most Minnesota homes heat with natural gas, keeping winter electricity bills moderate. Summer AC bills are relatively modest compared to southern states due to Minnesota's short cooling season.
Surprisingly yes. Minnesota has cold, sunny winters and long summer days with 15+ hours of sunlight. Annual solar production per panel is comparable to many southern states. Combined with state incentive programs and strong net metering, solar payback periods in Minnesota are typically 9-12 years. Community solar options are also widely available.
Compare Neighboring Rates
See how Minnesota compares to other states in the Midwest region:
Illinois
16.37¢/kWh
Indiana
15.12¢/kWh
Iowa
14.23¢/kWh
Kansas
14.98¢/kWh
Michigan
18.76¢/kWh
Missouri
13.12¢/kWh
Nebraska
11.98¢/kWh
North Dakota
11.87¢/kWh
Ohio
15.34¢/kWh
South Dakota
13.76¢/kWh
Wisconsin
16.98¢/kWh
Electricity rate data sourced from the U.S. Energy Information Administration (EIA), average residential retail price, last updated January 2026. Your actual rate depends on your utility, plan, and usage tier. See our full disclaimer.