North Dakota Solar Incentives, Net Metering & Cost (2026)
Written by Aditya Patil · Last updated 2026-09-24
Going solar in North Dakota comes with unique considerations. While the state offers a valuable five-year property tax exemption, net metering compensation rates mean you'll want to carefully size your system to match your own household electricity usage.
$114
Avg. monthly bill
14.12¢/kWh
Avg. rate
7.8%
Rate increase (1yr)
Varies
Installed cost
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Cost of solar in North Dakota
Currently, there is insufficient public data from Lawrence Berkeley National Laboratory's (LBNL) Tracking the Sun report to provide a statistically significant median installed solar cost specifically for North Dakota. Prices can vary widely based on your location within the state, the complexity of the installation, and the equipment you choose.
To get an accurate picture of what a system would cost for your home—which on average uses about 9,662 kWh annually in North Dakota—we recommend obtaining multiple quotes from local installers. Remember that systems completed before December 31, 2025, may still be eligible for the federal residential clean energy credit, which can significantly reduce the net cost of a cash or loan purchase.
Incentives & rebates
North Dakota offers a specialized property tax benefit to encourage renewable energy development, helping to offset the upfront cost of going solar.
| Program | Amount | Status |
|---|---|---|
| Renewable Energy Property Tax Exemption | 100% property tax exemption for the added value of an eligible renewable energy system. | open |
Net metering / export rules
North Dakota's net metering rules apply specifically to investor-owned utilities (IOUs), while municipal utilities and electric cooperatives set their own policies and are exempt from the state requirement.
For IOUs, if your solar system generates more electricity than your home consumes during a monthly billing period, the utility will purchase that excess generation. However, this energy is credited at the utility's avoided-cost rate—essentially what it would cost the utility to generate or purchase that power elsewhere—rather than the full retail rate you pay for electricity. Because of this avoided-cost structure, it is generally most cost-effective to size your solar system to offset your own energy use rather than trying to overproduce for profit.
| Policy Type | Avoided-cost rate for excess generation |
| System Size Limit | Up to 100 kW |
| Covered Utilities | Investor-owned utilities (IOUs) |
| Exempt Utilities | Municipal utilities and electric cooperatives |
Net excess generation at the end of a monthly billing period is credited at the utility's avoided cost rate, which is lower than the retail electricity rate.
Top utilities
Electricity rates in North Dakota can vary depending on whether you are served by an investor-owned utility, a municipal provider, or an electric cooperative.
| Utility | Residential rate | Customers |
|---|---|---|
| Northern States Power Co - Minnesota | 12.11¢/kWh | 82,987 |
| Montana-Dakota Utilities Co | 11.72¢/kWh | 79,354 |
| Cass County Elec Coop Inc | 12.45¢/kWh | 51,968 |
Residential rate and customer counts are from EIA-861.
FAQ
Is solar worth it in North Dakota?
While North Dakota has somewhat lower electricity rates (averaging 14.12¢/kWh) compared to the national average, solar can still make sense for homeowners looking to lock in their energy costs. Since the state's net metering policy compensates excess energy at a lower avoided-cost rate, sizing your system to match your actual consumption rather than overproducing is the most financially sound strategy.
What solar incentives are available in North Dakota?
North Dakota offers a 100% property tax exemption for the added value of a solar energy system. This exemption is valid for five years following the installation of your system. You must apply for it annually through your local tax assessor.
How does net metering work in North Dakota?
The state requires investor-owned utilities (IOUs) to offer net metering for renewable energy systems up to 100 kW. However, instead of a full retail 1:1 credit, any excess generation at the end of the monthly billing period is credited at the utility's avoided-cost rate, which is lower. Keep in mind that municipal utilities and electric cooperatives are exempt from this requirement.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil