Solar by state › North Dakota

Home solar in North Dakota

North Dakota has no state solar rebates or tax credits; utilities under the PSC must offer 'net energy billing' for systems up to 100 kW, and solar gets a 5-year property tax exemption.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

13.3¢average home price per kWh (EIA, August 2026)

Harder case for solarCheap power (about 13 cents/kWh), weak pay for exported power, and no state incentives beyond a short property tax break. Co-ops set their own rules.

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Net metering Net metering available

A PSC rule gives systems of 100 kW or less 'net energy billing': your solar output runs your meter backward within each month. Power you export beyond your monthly use is generally bought at the utility's avoided cost, well below retail. The rule covers PSC-regulated utilities (Xcel Energy, Montana-Dakota, Otter Tail); rural electric co-ops set their own policies. Source

Solar credits (SRECs) No market

North Dakota has no SREC market for homes. Source

Rebates and incentives

We found no statewide solar rebate or tax credit open in North Dakota right now. Your utility, city or county may still offer one, so ask your installer.

Taxes

Property tax: Exempt for 5 years: solar energy devices on locally assessed buildings are exempt from property tax for 5 years after installation (NDCC 57-02-08(27)).
Sales tax: None found: no sales tax exemption for home solar equipment. Source

Solar laws

Net energy billing, N.D. Admin. Code 69-09-07-09 (). Qualifying facilities of 100 kW or less are entitled to net energy billing, where solar output reverses the meter; the utility may charge for production metering. Source
Property tax exemption, NDCC 57-02-08(27) (). Exempts the solar, wind or geothermal part of a building's energy system from property tax for 5 years after installation. Source

Community solar

No: North Dakota has no community solar law; a few co-ops may offer their own projects.

Timeline

1991 PSC adopts net energy billing rule for systems up to 100 kW (unverified)
2021 SB 2295 to require retail-rate credits introduced; did not pass (unverified)
2025-12-31 Federal 30% homeowner tax credit (25D) ends

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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