Typical customer: Not worth it

Federated Rural Electric Association and solar

Federated Rural Electric Association is an electric cooperative serving about 5,786 homes in Minnesota, Iowa. Here's what its rates and export rules mean for solar: for a typical customer, solar is not worth it.

Average price (2026 est.)
13.1¢19% below Minnesota average
Typical bill
$1641,249 kWh a month
Exports credited
RetailFull retail net metering
Typical payback
20.8 yrs5.6 kW, cash

Export rules for Federated Rural Electric Association customers

Full retail net metering (Minnesota rule).

Minnesota requires utilities to net meter systems under 40 kW; monthly excess is paid or credited at the 'average retail utility energy rate', which is close to retail (excludes fixed charges). This applies to IOUs, co-ops and munis, although co-ops/munis may add a monthly DG fee.

Minnesota net metering details

Solar for a typical Federated Rural Electric Association home

System5.6 kW (50% of 1,249 kWh/month)
Cost$21,700
First-year savings$980
Payback20.8 years
25-year net$5,719

Uses the utility's average price.

Solar adoption

Homes with solar (2025)
13
Share of customers
0.2%
Residential solar capacity
0 MW
Residential customers
5,786

EIA-861, 2025.

Questions about Federated Rural Electric Association and solar

Does Federated Rural Electric Association have net metering?

Federated Rural Electric Association follows Minnesota's rules: Minnesota requires utilities to net meter systems under 40 kW; monthly excess is paid or credited at the 'average retail utility energy rate', which is close to retail (excludes fixed charges). This applies to IOUs, co-ops and munis, although co-ops/munis may add a monthly DG fee.

How much does electricity cost with Federated Rural Electric Association?

Residential customers paid an average of 12.8¢ per kWh in 2025 (EIA), about 13.1¢ adjusted to 2026. The typical home uses 1,249 kWh a month, a bill of about $164.

Is solar worth it with Federated Rural Electric Association?

For a typical customer, solar is not worth it: a 5.6 kW system costing about $21,700 pays back in about 20.8 years, with $5,719 net over 25 years.

How many Federated Rural Electric Association customers have solar?

About 13 homes had net-metered solar at the end of 2025, roughly 0.2% of residential customers (EIA-861).

Legal name: Federated Rural Electric Assn (EIA ID 6258). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.