North Dakota Solar Incentives: Tax Credits & Rebates Guide

Solar power in North Dakota

The solar energy industry is in its early stages in North Dakota. According to the Solar Energy Industries Association (SEIA), North Dakota has installed 2 megawatts (MW) of solar, bringing North Dakota to a total of 50 solar panel installations and 262 solar jobs.    

Despite a slow start, North Dakota plans to grow its solar infrastructure significantly over the next five years, meaning residents have a great opportunity to consider going solar. You’ll likely need to make a significant investment upfront, but the benefits are just as significant. 

With federal and state North Dakota solar incentives, you can save on the cost of installation, and North Dakota solar energy can help you reduce your energy bill. Read on to learn about solar power benefits, costs, and different ways to pay for solar panels in North Dakota. 

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North Dakota solar panel cost

Considering the cost of solar panels is an important first step. The cost of solar panels in North Dakota is measured in dollars per watt. The median cost of a residential solar system in the U.S. is $3.67 per watt. An average 8.6-kilowatt (kW) system then costs about $31,558. However, the overall costs can be lowered with tax credits and rebates.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does North Dakota solar save you money?

To truly understand the potential of solar energy in North Dakota, you also need to factor in solar incentives that can reduce your upfront costs — and long-term energy savings that can lead to a return on your investment. The federal tax credit, which we’ll cover more below, can automatically save you 30% on your upfront costs, or roughly $9,467 on an 8.6 kW system.

Then there are your energy savings. The typical North Dakota resident pays $121.80 per month for electricity, or $1,461.60 per year. A properly installed solar array could offset this cost entirely. In that case, you’d recoup your upfront spending in just over 15 years. 

To forecast your potential return on solar panels in North Dakota, weigh the following costs against your average monthly utility bill. Remember, you can recoup 30% of the upfront costs when you factor in the federal solar tax credit.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best North Dakota solar incentives or rebates

North Dakota solar incentives and rebates can help decrease the total price of installing solar panels. The federal tax credit, called the Residential Clean Energy Credit, applies to all homeowners who install solar panels on their primary or secondary residence. The credit stays at 30% until 2033, when it drops to 26%. It then drops to 22% in 2034 before ending in 2035 if not renewed. 

North Dakota does not offer direct state rebates for installing residential solar. However, you can search the DSIRE database to find out what is available in North Dakota, as programs can change. The state may have solar rebates or other incentives available in the future, such as the ones below:

Solar incentives in Fargo

Like residents throughout North Dakota, those in Fargo can take advantage of the state’s property tax exemption for renewable energy systems. 

• For the first five years after installing solar panels on a new or existing property, you can completely exempt their value from your property tax assessment. 
• To apply, you must fill out this application and contact your local tax assessor or county director of tax equalization.

Fargo residents may also be eligible for net metering if they use an investor-owned utility. Contact your utility provider for more information.

Solar incentives in Bismarck

Bismark residents are also eligible for solar incentives like the state’s property tax exemption and net metering. See the guidelines mentioned previously for Fargo for more information.

Why choose North Dakota solar power?

Lower energy costs

Many people install solar to lower monthly energy costs. Energy bills can change and tend to rise over time. Many homeowners find generating their own energy to be an appealing prospect because they don’t have to rely heavily on the grid. Another financial perk is that installing solar can increase your home’s value.

Establish energy independence

Extreme weather adds stress to America’s aging electrical grid. If you have a solar array, your home will gain more independent from the electrical grid. You may not be affected by statewide or local outages, regardless of whether it was due to extreme weather or periods of high demand on the grid.

Go green

The environmental benefits of solar are also a huge draw for homeowners. Solar is a 100% renewable resource, so it’s a direct and impactful way to reduce your carbon footprint. For instance, you can use solar to power your air conditioning and an all-electric heating system so that you are not reliant on natural gas to heat your home in the winter. If you live in North Dakota and are concerned about the future of the environment, installing solar panels is an immediate change that will help the planet and its future.

Should I buy or lease solar panels in North Dakota?

To save the most money over time, you might want to consider buying solar panels instead of leasing them. Buying allows homeowners to avoid paying interest. Plus, according to the Office of Energy Efficiency and Renewable Energy, installing solar panels in North Dakota may increase your home’s value by $15,000, which could offset the total cost of solar panels in North Dakota. 

Even if you choose to lease your solar panels, it might be worth the investment in the long run. Leasing allows many families to access solar when they might not otherwise be able to. However, keep in mind that leasing might not lead to the same overall savings as buying panels, and you are typically not eligible for credits and solar incentives.     

If you’re not in a place to spend a lot of money on solar energy right now, you have other options. You could participate in a shared or community solar program in North Dakota. By participating in community solar, residents can access off-site solar panels that provide solar energy to multiple homes. Individuals can sign up for purchase plans or subscriptions to community solar. You can also look for smaller, more direct solar uses, like installing solar panels on an RV.

Here’s a quick look at your different options for getting solar for your home. 

North Dakota solar power companies

North Dakota has several quality solar companiesthat can install solar on your home. Shopping around at different solar companies can help you compare pricing and come up with questions about how solar will work. SaveOnEnergy works with trusted installers in North Dakota, and we have resources to help you get started. Fill out this form or call our energy experts at the number on your screen.

What to look for in a solar contractor

As you compare solar companies in North Dakota, learn as much as you can about each installer before you sign a contract. Read reviews from others who worked with them and check for industry certifications from organizations like the North American Board of Certified Energy Practitioners (NABCEP). Verify that they have a great service track record, quality and up-to-date equipment, and warranties to support their work.

Beware of free solar panels in North Dakota scam

In most cases, solar panel costs will exceed $15,000, if not more, even after solar incentives and credits. If you encounter ads for “free solar panels in North Dakota,” they’re likely too good to be true. Protect your personal information and don’t get roped into an unfavorable contract. Instead, consider the return on investment you’ll get from North Dakota solar power.

Important solar installation factors to consider

A few key factors will determine how reliable and accessible solar power in North Dakota can be. 

• Roof: Older roofs might be weaker and unable to withstand the weight of the panels, so consider how roof repairs or maintenance will factor into your total costs. The roof should also be angled at 15 to 40 degrees to capture adequate sunlight. For more details on what makes a roof viable for solar, check out SaveOnEnergy’s resources and connect with an installer.
• Sunlight: North Dakota has sunlight during most of the year. But your roof must be fairly non-shaded to catch the sunlight. You may have to consider cutting down or thinning trees if you have a heavily shaded home. 
• Neighborhood: Check with your HOA or neighborhood rules to ensure they allow solar installations. Some neighborhood groups object to the appearance of panels, and you may need approval before installing solar. Your solar installer can help you navigate potential requirements.

Check out our guide to learn more about how solar panels operate.