North Dakota solar rebates and incentives: 2025 guide

North Dakotans looking to power their homes with clean, sustainable energy have access to a few cost-cutting solar incentives that can help speed up their payback period.  While there aren’t many state-level incentives, the federal solar tax credit and the state’s property tax exemption can still save you thousands on your solar panel system.

As a North Dakota homeowner, the ITC is the most impactful way to bring down your solar costs.

Residential Clean Energy Credit

The Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), can reduce your solar panel system's cost by 30%. Your entire system qualifies for this incentive, including equipment, labor, permitting, and sales tax.

When you file your federal income taxes, you can claim this incentive as a credit towards your federal tax bill. Just keep in mind that to qualify for the ITC, you need to purchase your system either with cash or a solar loan–if you lease your system, you won't be eligible. 

You also need a high enough tax bill, though you can roll over any remaining credit year-to-year until 2035 when the ITC expires. The only time you might be eligible for a direct payment for the ITC is if you're a tax-exempt entity, like a nonprofit organization. 

In addition to the federal solar tax credit listed above, North Dakota offers a property tax exemption for solar panel systems. Solar panels generally raise a home's property value, but thanks to North Dakota’s solar property tax exemption, you won’t have to pay extra tax on that added value.

North Dakota offers a net metering solar buyback program through two of the three investor-owned utilities, which is great for homeowners in several important ways. 

While the sun is shining, your solar panels might produce more electricity than your home needs at any given moment. Under the net metering solar buyback programs in North Dakota, you can sell that excess power back to the grid for credits on your electricity bill. 

Northern States Power Company (Xcel Energy) and Otter Tail Power Company compensate their customers for their solar generation, but Montana-Dakota Utilities Co. no longer offers the incentive in North Dakota. Without net metering, the best way to get the most value out of your solar panels is to install a solar battery.

North Dakota doesn't offer any state-specific battery incentives. However, all batteries above 3 kWh in size are eligible for the 30% federal tax credit. 

Solar batteries paired with solar panels can make good financial sense in North Dakota. They boost your energy independence, provide backup power during an outage, and help you keep more of your own (free) solar power.

If you're looking for solar installers in North Dakota, here is the complete list.