North Dakota solar panels: The complete guide in 2024
Data updated Dec 10, 2024
Interested in going solar? You'll need to install a 15.58 kW solar panel system to cover the average electric bill in North Dakota, which will cost you about $31,688 after the federal tax credit.
Cost for an average system in North Dakota
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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- Overview
- Solar cost
- Incentives
- Electricity cost
- Companies
Going solar in North Dakota
Looking to power your home with clean, sustainable energy that’ll boost your energy independence? Going solar in North Dakota reduces your carbon footprint and your reliance on the utility electric grid.
Factor in the federal solar tax credit, and you can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your investment.
Here's what you need to know about going solar in North Dakota.
Cost
How much do solar panels cost in North Dakota?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average North Dakota homeowner needs a 15.58 kW solar panel system to cover their electricity needs, which comes out to $45,269 before incentives. Prices range from $38,479 to $52,059, but after the federal tax credit, that drops by 30%.
While this may sound high, it will pay off in North Dakota. That's why over 80 North Dakota homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 12.31 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings.
Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
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Incentives
What are the best solar rebates and incentives in North Dakota?
Incentives help bring solar's price tag down considerably in North Dakota. Here are the major ones to know about:
Incentive | Average savings in North Dakota | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $13,581 | Lowers your solar panel system's cost by 30% |
North Dakota solar property tax exemption | 0.99% of your system’s cost, annually on average | If you use solar energy as a source of power, you won't need to pay a property tax for 5 years on the value your solar panels add to your property. |
Is net metering available in North Dakota?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Under the former solar buyback programs in North Dakota, you could sell that excess power back to the grid for credits on your electricity bill. Unfortunately, Montana-Dakota Utilities Co. and Northern States Power Company (Xcel Energy) no longer offer net metering in North Dakota. Otter Tail Power Company may still compensate their customers for their solar generation, so make sure to sign up while you can.
Equipment
Equipment quality
Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2024, the most popular solar panels can produce about 400 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.
You should also make sure to select a solar inverter setup that makes sense for your roof’s layout.
And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter.
Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output further into the future.
Companies
Who are the best solar installers in North Dakota?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in North Dakota:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for North Dakota
- North Dakota Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- North Dakota Department of Commerce
Learn about ND solar programs from the state government.
- ND Public Service Commission
Read more about how utility companies work in ND.
- North Dakota Electricity Profile (EIA)
Learn about ND energy production and prices.
- ND State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in ND.
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