A steadily growing population and plenty of sunshine make it possible for North Dakota to see huge benefits from solar panel power. Thanks to solar rebates and tax incentives, residents, small businesses and other organizations are starting to invest in solar energy across the state. See how the economic landscape impacts the production and value of solar panels in North Dakota.

North Dakota’s Solar
Panel Report Card

Grade
Methodology

To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

We determined a rank from 1 to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.

Incentives & Rebates, 40%

Electricity Rate, 15%

Renewable Energy Policy, 30%

Interconnection Ease, 5%

Photovoltaic Potential, 10%

North Dakota Electricity Rates

Most of the electricity in North Dakota comes from coal, which is no surprise since the western part of the state contains the single largest deposit of lignite in the world. The costs of both residential and commercial electricity in North Dakota are below the national average, at $0.93/kWh and $0.84/kWh, respectively. Relatively low electricity prices means solar energy has to work a little harder to get North Dakota’s attention.

Cost of Residential Electricity

Data from U.S. Energy Information Administration
*as of Q3 2015

The Solar Resource
Library: North Dakota

Key Incentives & Policies

While it seems North Dakota has a long way to go before solar power becomes a significant provider of the state’s energy, there are incentives and policies that can make solar energy more affordable for early investors. Tax credits, upfront rebates, and net metering policies offered at the utility, county and state levels all make solar energy more enticing and accessible. Check out some of the incentives available to North Dakotans interested in saving on their energy bills and supporting the state’s solar industry.

REBATES/INCENTIVES

None for residential/commercial specifically

None for residential specifically

None for commercial specifically

POLICIES

Net Metering:

Investor-owned electric utility customers, including those who use solar PV systems to generate electricity, are eligible to take advantage of net metering. Customers maintain ownership of any renewable-energy credits that are associated with their loads, while credits linked to net excess generation are given to the utility, with the customer-generator being compensated for this.

Solar Easements:

North Dakota’s law on solar easements allows property owners to get solar easements from other property owners to ensure that their solar PV systems have adequate access to sunlight. Solar easements have to include angles at which the easements extend as well as any conditions or terms under which the easements are granted or will be terminated.

None for residential specifically

None for commercial specifically

TAX CREDITS

None for residential/commercial specifically

None for residential specifically

Renewable Energy Tax Credit:

Corporate income tax credits are offered in North Dakota for the cost of solar PV systems, including installation, in buildings or on properties leased or owned by state taxpayers. The credit is equivalent to 3 percent per year for a total of five years for systems whose installation began before January 1, 2015 and after December 31, 2000. Current, in-progress installations must be complete by January 1, 2017 to qualify.

TAX EXEMPTIONS

Renewable Energy Property Tax Exemption:

North Dakota allows any locally assessed solar PV system to be exempt from local property taxation. This exemption applies during the five years following the system’s installation.

None for residential specifically

Sales and Use Tax Exemption for Electrical Generating Facilities:

Facilities that generate energy, including energy from solar PV systems, are exempt from use and sales taxes. To qualify, a facility in North Dakota has to have a minimum of one unit with at least a 100 kW capacity.

North Dakota Solar Panel Contractors & Installers

There’s not a lot of competition among solar companies in North Dakota, but here are a few businesses in and around North Dakota that can help you with you solar energy system.

Revolutionary Renewable Energy

Revolutionary Renewable Energy provides various alternative energy solutions to its customers, including solar energy and solar hot water systems.

Where it operatesBismarck

GenPro Energy Solutions

GenPro’s contractors offer an array of solar pumps and solar energy systems. Their Piedmont location serves North Dakota as well as South Dakota.

Where it operatesPiedmont, SD

Zenergy

Zenergy specializes in solar energy and solar heat systems.

Where it operatesBased in Sebeka, MN; serves North Dakota

Other Resources

Here is a list of resources to help you investigate solar energy options in North Dakota.

DSIRE Incentive Database – North Dakota

Find solar energy incentives in North Dakota and across the U.S. via a public clearinghouse.

North Dakota Energy Infrastructure and Impact Office

Explore energy programs, energy statistics, and energy-saving strategies from the North Dakota state government.

North Dakota Legislative Branch

Keep track of solar energy legislation and get contact information for individual legislators in North Dakota.

North Dakota Public Service Commission

Learn how NDPSC regulates electricity rates and public utilities services in North Dakota.

U.S. Energy Information Administration – North Dakota State Profile

Access statistics about electricity supply and demand and energy-related data for North Dakota from the U.S. government.