North DakotaSolar Incentives 2026: Tax Credits, Rebates & Net Metering
North Dakota homeowners can reduce solar installation costs by up to 30% through state and federal incentives. With average monthly bills of $115 and 4.8 peak sun hours per day, the average ND homeowner saves $22,600 over 25 years.
State Solar Tax Credit
North Dakota does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.
Even without a state income credit, North Dakota's property tax exemption on solar equipment significantly reduce effective lifetime cost.
Net Metering in North Dakota
North Dakota requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is the utility's avoided-cost rate (well below retail).
In practice, this means a properly sized North Dakota system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under ND net metering rules include Xcel Energy, Otter Tail Power, Montana-Dakota.
Utility Rebate Programs
3 major utilities operate in North Dakota: Xcel Energy, Otter Tail Power, Montana-Dakota. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most North Dakota installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
North Dakota excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.
North Dakota does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
How North Dakota Compares to Neighboring States
Compare North Dakota's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.