North Dakota Solar Incentive Programs
Utility Net Metering Rates
Two investor-owned utilities serve most of North Dakota. Both offer net metering, but export compensation is well below retail, well below what you'd pay to buy power.
At 3.646¢/kWh for exports, well below the retail rate, maximizing self-consumption is critical. A kWh you use yourself saves more than one you export.
Sources: NDPSC Case PU-26-018 (Xcel 2026 rate sheets, Tier 1); utility-rates.com (verified 2026-06-05)
MDU's export rate of 3.416¢/kWh is well below what you pay to buy power. MDU customers need to right-size systems aggressively to self-consumption. Exports are essentially a last resort.
Sources: NDPSC Case PU-25-276 (MDU 2026 avoided cost update, Rate 95, Tier 1)
State Incentive Summary
North Dakota has one active state incentive for residential solar: the property tax exemption. Everything else is either unavailable or expired.
| Incentive | Status | Notes |
|---|---|---|
| Property tax exemption (solar) | Active, 5 years | 100% exemption on solar-added value for 5 years; N.D. Cent. Code §57-02-08. Applies to residential PV. |
| State income tax credit | None | North Dakota offers no residential solar income tax credit |
| Sales tax exemption (residential solar) | None | ND sales tax (5%) applies to residential solar equipment and installation |
| Federal ITC (Section 25D) | Expired Dec 31, 2025 | No federal residential tax credit for systems whose installation was completed after Dec 31, 2025 |
| Net metering | Available (Xcel & MDU) | Export rate at avoided cost (~3.416 to 3.646¢/kWh); self-consumption credited at full retail |
What You Actually Get
Property Tax Exemption
ActiveFor 5 years after installation, the assessed value your solar adds to your home is fully exempt from property taxes. On a $20,000 system, this avoids approximately $300 to $600 in property tax over the exemption period, depending on local mill rates.
Net Metering (Self-Consumption)
AvailableThe real value in ND solar is avoiding retail purchases. Every kWh generated and used yourself saves 7 to 12¢. Every kWh exported earns 3.416 to 3.646¢. Size your system to maximize self-consumption and you get 2 to 4× more value per kWh.
No State Tax Credit
Not AvailableNorth Dakota offers no state income tax credit for residential solar, and no sales tax exemption on equipment. Combined with the expired federal ITC, there is no upfront credit of any kind for a 2026 residential installation.
Sample Economics
7 kW system in North Dakota. Estimated annual production: ~8,400 kWh (ND gets solid sun despite its latitude).
7 kW System, North Dakota (MDU Customer Example)
Estimates only. MDU residential all-in rate assumed at 11.5¢ average. Higher self-consumption improves payback significantly. No federal or state tax credits available in 2026.
Making Solar Work in North Dakota
The Self-Consumption Imperative
With export rates at 3.416 to 3.646¢/kWh and retail rates at 7 to 12¢, every exported kWh is a missed opportunity worth 2 to 4× more if used in-home. ND homeowners should: (1) install only enough capacity to cover their annual load, (2) shift daytime loads (EV charging, dishwasher, laundry) to solar production hours, and (3) seriously evaluate battery storage if their usage is heavily evening/night-weighted.
Claim the Property Tax Exemption
The 5-year 100% exemption under NDCC §57-02-08 is automatic in most counties, but confirm with your county assessor that solar added value is being excluded from your assessed value after installation. Request documentation from your installer noting installation date and system value for the assessor's records.
Get quotes from North Dakota solar installers
Local installers know the North Dakota incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.