North Dakota solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of North Dakota solar incentives 2020

While North Dakota lawmakers certainly haven't done much to make going solar for a homeowner much easier, it still makes sense to strongly consider a home solar investment here.

Since prices for solar equipment and installation are falling all over the world, home solar here pays itself back 5 years faster than it did this time last year. That's something to celebrate, so if you're still thinking about solar in North Dakota, read on to find out all about the financial ins and outs!

On this page, you can:

  1. Learn what solar incentives are available to North Dakota homeowners

  2. See what North Dakota solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or North Dakota solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in North Dakota

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in North Dakota

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.

North Dakota requires investor-owned utilities to offer net metering to all customers; electric cooperates and municipal utilities are exempt from the net metering regulation. For customers of investor-owned utilities, the electric company is required to cut you a check for all surplus energy at the utility’s avoided-cost rate. All systems up to 100kW in size are eligible for net metering.

If you are lucky enough to be a customer of an investor-owned utility who only needs a residential-sized system, you’re eligible for net metering credits, but you won’t get compensated at the retail rate.

Therefore it’s important to properly size your system well so you aren’t sending valuable electricity back into the grid on the cheap when you aren’t able to use the power. It may also be sensible to look into home energy storage systems, so you can harvest and use all your own power.

North Dakota solar rebates

While North Dakota does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.

Property tax exemption

In North Dakota you will save loads of cash with a 100% exemption (see page 9, entry 27 of that linked document) from paying property tax increases for five years, despite the fact that you’ll be adding roughly 20 times your annual electricity bill savings to your property value. In the case of our 5kW example below, that adds up to about $13,728 (20 times your annual electricity savings of $686).

Cost of solar panels in your part of North Dakota after all applicable solar incentives

Showing data for:

Prices based on a 13.7kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices

$19,404-$23,715

Payback period

10.5-12.8 years

Net profit (savings less system cost)

$32,675-$39,936

Average size system installed in ND in 2020

13.7kW

Solar panel cost calculator

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