Discover your exact solar savings potential in North Dakota. We factor in local utility rates, sun hours, and state-specific incentives to give you an accurate ROI estimate.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Find out how much you can save based on your location and current energy usage.
North Dakota's average residential electricity rate was approximately 10.92¢/kWh as of January 2026 (up from around 7.8¢/kWh in January 2025, roughly a 9% increase), according to EIA data reported by the North Dakota Monitor — the cheapest in the entire United States. While low rates mean solar reduces a smaller base bill, they also mean your electricity costs can only go up from here. Solar locks in a hedge against future rate increases.
Under N.D.C.C. § 57-02-08(27), North Dakota offers a 100% property tax exemption on the added assessed value of a solar energy system — but only for 5 years after installation, not permanently. Importantly, you must file an Application for Exemption of Solar, Wind, or Geothermal Devices with your local county assessor each year to keep the exemption active. It does not apply automatically; missing the annual filing could mean losing the exemption for that year.
North Dakota's net metering rules apply to investor-owned utilities (IOUs) for systems up to 100 kW: exports are credited at full retail rate during the month, but any net excess generation at month's end is purchased at the utility's lower avoided-cost rate rather than rolled forward at retail value. Terms differ by IOU: Otter Tail Power has continued offering full retail-rate net energy billing; Xcel Energy (Fargo area) has moved away from full retail-rate crediting in its North Dakota territory. If you are served by a rural electric cooperative — a large portion of the state is — the state-mandated rules do NOT apply to co-ops, and each co-op sets its own policy.
Despite its northern latitude, North Dakota benefits from clear Prairie skies and receives roughly 4.5 to 5 peak sun hours per day depending on the data source and season — broadly comparable to the national average and adequate for meaningful solar generation. This range should be treated as an approximation; actual generation varies by location and system orientation.
The USDA Rural Energy for America Program (REAP) can cover 25–50% of solar project costs and is widely available in North Dakota's rural economy. However, REAP is strictly for agricultural producers and rural small businesses — it does not apply to typical residential homeowners. If you are a farmer or rural business owner, REAP may dramatically improve your project economics; if you are a homeowner, it is not an available incentive for you.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act and does NOT apply to solar energy systems installed in 2026 or later. North Dakota's property tax exemption remains available as described above, but there is currently no replacement federal residential credit.
Everything you need to know about solar incentives, costs, and savings in your area.