How Xcel Minnesota rates rose 35 percent
Xcel Energy (Minnesota)'s average residential electricity price has risen from 12.6 cents per kWh in 2015 to 17.07 cents in 2025, an increase of about 35 percent, or roughly 3.1 percent per year. The chart shows Xcel (MN)'s average residential price by year. Hover any point for the exact figure.
Two ways to earn from solar on Xcel Minnesota
Net metering
Systems up to 40 kW net meter at the retail rate: exported kWh offset consumption one for one, and monthly net excess is credited at the utility's average retail energy rate. The retail-rate rule is set by state statute, so it is stable.
Solar Rewards
A separate optional incentive that pays for solar production in exchange for the renewable energy credits, stacking on top of your net metering savings for eligible systems.
Current residential rates
Xcel (MN) residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.
| Plan | Energy charge | Fixed / basic |
|---|---|---|
| Regular Residential (standard) | About 13 cents/kWh June to September and about 11 cents/kWh October to May before the fuel clause and riders; the all-in effective price including fuel, riders, and taxes is about 17 cents/kWh | $6.00/month basic service charge |
| Time-of-Day (optional) | On-peak (weekdays 9 am to 9 pm) about 21 to 26 cents/kWh depending on season; off-peak about 5 cents/kWh | $6.00/month basic service charge |
Rates reflect interim rates in effect during Xcel's Minnesota electric rate case. The commission issued a decision in mid-2026 with final rates taking effect later in 2026, so current bills still reflect the interim rates. Confirm current pricing on Xcel's Minnesota rate pages before making decisions.
Retail net metering up to 40 kW
Under Minnesota law, Xcel offers net energy metering through a single bidirectional meter. Residential systems up to 40 kW are net metered at the retail rate, one for one: exported kWh offset consumption, and monthly net excess is credited at the utility's average retail energy rate. Systems over 40 kW are compensated at avoided cost. The retail-rate rule is set by state statute. Solar Rewards is a separate optional incentive.
Net metering plus Solar Rewards
Xcel Minnesota's rates rose about 35 percent since 2015, with a clear step up beginning in 2022 as rate cases took effect, reaching about 17 cents per kWh.
Minnesota is one of the states that kept retail-rate net metering, and it does so by statute for systems up to 40 kW, well above a typical home system. That means exported solar is credited at close to what you pay, and the optional Solar Rewards incentive can add to that. Whether solar pencils out depends on your roof and usage, so get a site-specific quote.
Xcel (MN) service area
Xcel (MN) serves The Minneapolis and Saint Paul metro and much of central, southern, and northwestern Minnesota. The Minnesota electric operation is legally Northern States Power Company, an Xcel Energy subsidiary, and is the largest electric utility in the state..
To confirm whether a specific address is served by Xcel (MN), check your electricity bill. A ZIP lookup tool is coming to this site.
What rising Xcel (MN) rates could cost you
Xcel (MN) rates have risen about 3.1% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.
Estimate only. Projects your current bill forward at Xcel (MN)'s historical average rate increase (3.1% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.
Full data and sources
Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.
| Year | Xcel (MN) (c/kWh) |
|---|---|
| 2015 | 12.6 |
| 2016 | 13.18 |
| 2017 | 13.79 |
| 2018 | 14.15 |
| 2019 | 13.62 |
| 2020 | 13.74 |
| 2021 | 13.92 |
| 2022 | 15.6 |
| 2023 | 16.31 |
| 2024 | 16.98 |
| 2025 | 17.07 |
Sources: EIA Form 861, Sales to Ultimate Customers (2015 to 2024) · Xcel Energy Minnesota, Regular Residential rate plan · Xcel Energy Minnesota, net energy metering · DSIRE, Minnesota net metering
FAQ
How much have Xcel Minnesota electricity rates gone up?
Xcel's average residential price in Minnesota rose from about 12.6 cents per kWh in 2015 to about 17 cents in 2025, an increase of roughly 35 percent, per EIA Form 861 data.
Does Xcel Minnesota have net metering?
Yes, at the retail rate. Minnesota law nets residential systems up to 40 kW one for one: exported kWh offset consumption, and monthly net excess is credited at the average retail energy rate. Systems over 40 kW are compensated at avoided cost. The retail-rate rule is set by state statute.
What is Solar Rewards?
Solar Rewards is a separate optional Xcel incentive that pays for solar production in exchange for the renewable energy credits. It can stack on top of your net metering savings for eligible residential systems.
Is solar worth it with Xcel Minnesota?
Rising rates and retail-rate net metering both favor solar here, and Solar Rewards can add to the return. The value depends on your usage, roof, and system size, so get a site-specific quote rather than a general estimate.