Solar Panels in North Dakota (ND)
Last updated: February 24, 2026
Everything you need to know about going solar in North Dakota (ND) — costs, savings, incentives, and the best equipment for your climate.
Federal Residential Solar Tax Credit Repealed
The 30% residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit. Commercial projects retain the 30% ITC under Section 48/48E. Solar can still pay for itself through electricity savings alone.
Sun Hours/Day
4.2 hrs
Good Solar Irradiance
8 kW System Cost
$25,200
$3.15/watt installed
Federal Residential ITC
Repealed
Section 25D (early 2026)
Annual Savings
$1,594
12,264 kWh/year
Payback Period
15.8 yrs
then free electricity for 15-20+ yrs
Solar Irradiance in North Dakota (2026)
North Dakota receives an average of 4.2 peak sun hours per day annually, equivalent to roughly 1533 kWh/m² per year of global horizontal irradiance (GHI). Summer peaks reach about 5.5 h/day, while winter lows drop to around 2.5 h/day.
This places North Dakota in the good solar irradiance band compared with other US states. At 4.2 kWh/m²/day, each 1 kW of rooftop solar in North Dakota generates approximately 1,196 kWh/year (assuming 78% system performance after inverter, soiling, and temperature losses), which makes an 8 kW system produce around 12,264 kWh per year.
Data source: NREL National Solar Radiation Database (NSRDB), 1998-2020 typical meteorological year averages. North Dakota (ND) values reflect the statewide average; coastal, mountain, and desert microclimates can vary by ±15% from this figure.
North Dakota Solar Incentives (2026)
Federal residential tax credit was repealed in early 2026. North Dakota continues to offer the following state and utility-level programs:
| Incentive | Value | Eligibility | Deadline | Source |
|---|---|---|---|---|
| Federal Section 25D ITC | 0% (Repealed Q1 2026) | N/A | Was 12/31/2025 | IRS |
| Property tax exemption (5yr) | — | — | Verify with state agency | DSIRE |
| Net metering (capped) | — | — | Verify with state agency | DSIRE |
| Solar Access Rights | — | — | Verify with state agency | DSIRE |
⚠ Always verify state incentive deadlines, caps, and eligibility before signing a solar contract — programs change annually and many have annual funding caps that exhaust mid-year.
Major utility companies in North Dakota
Check your utility's net metering policy, interconnection requirements, and rate structure before installing — rules vary significantly within North Dakota:
- • Xcel Energy
- • Otter Tail Power
- • MDU Resources (Montana-Dakota Utilities)
Each utility has different rate structures, net metering caps, and time-of-use schedules. Visit your utility's website for current solar interconnection requirements and queue times.
Net metering in North Dakota
Status: Net metering 1:1 (limited)
Export rate: Avoided-cost rate (utility-specific)
System size cap: 100 kW
⚠ NEM rules can be amended by state public utility commissions and individual utilities — verify with your utility before committing. Caps and rates shown reflect the most common residential tariff as of 2026.
Solar Incentives in North Dakota
Federal Residential ITC (Section 25D) -- Repealed
The 30% federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal may still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E.
Top 3 Recommended Solar Panels for North Dakota
North Dakota's 4.2 peak sun hours/day provides solid solar potential. These panels deliver the best performance:
| Panel | Wattage | Efficiency | Temp Coeff | Warranty |
|---|---|---|---|---|
| LONGi Hi-MO 7 620W | 620W | 23% | -0.28%/°C | 12/30 yr |
| LONGi Hi-MO 7 590W | 590W | 22.8% | -0.28%/°C | 12/30 yr |
| Trina Solar Vertex N+ 600W | 600W | 22.8% | -0.28%/°C | 15/30 yr |
Top 3 Recommended Batteries for North Dakota
Pairing solar with battery storage provides backup power during outages and can optimize savings with time-of-use rates:
| Battery | Capacity | Power | Chemistry | Warranty |
|---|---|---|---|---|
| HomeGrid Stack'd Series 38.4kWh | 38.4 kWh | 34.4 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| HomeGrid Stack'd Series 28.8kWh | 28.8 kWh | 25.8 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| BYD Battery-Box Premium HVM 22.1 | 22.08 kWh | 22.08 kW | LFP (Lithium Iron Phosphate) | 10 yr |
Frequently Asked Questions
How much do solar panels cost in North Dakota in 2026?
The average cost of an 8 kW solar system in North Dakota is approximately $25,200 ($3.15/watt installed). Note: The federal residential solar tax credit (Section 25D) was repealed in early 2026, so the full system cost applies unless state incentives are available. Get 3-5 quotes from local installers for accurate pricing.
Is the federal solar tax credit available in North Dakota?
The federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E. While North Dakota does not have state-level solar tax credits, property tax exemptions and net metering may still provide savings. Consult a tax professional for the latest guidance.
Is solar a good investment in North Dakota?
With 4.2 peak sun hours/day, North Dakota has good solar potential. An 8 kW system costs approximately $25,200 and can pay for itself in about 15.8 years through electricity savings. After payback, you enjoy 15-20+ years of essentially free electricity.
How much can I save with solar in North Dakota?
An 8 kW solar system in North Dakota produces approximately 12,264 kWh/year, saving about $1,594 annually. The estimated payback period is 15.8 years. Over 25 years, total savings can reach $39,850.
Does North Dakota have net metering?
Net metering policies vary by utility in North Dakota. Most states offer some form of net metering or net billing that credits solar homeowners for excess electricity sent back to the grid. Contact your local utility or check the DSIRE database for current North Dakota net metering policies.
What is the best solar panel for North Dakota?
For North Dakota with 4.2 sun hours/day, high-efficiency panels are the best choice to maximize energy production. Look for panels with efficiency ratings above 21%.
What is the payback period for solar in North Dakota?
The estimated payback period for an 8 kW solar system in North Dakota is 15.8 years. This is calculated as: system cost ($25,200) divided by annual savings ($1,594/year). After payback, solar generates essentially free electricity for 15-20+ more years.
Do I need a battery for solar in North Dakota?
A battery is not required for grid-tied solar in North Dakota, but it provides backup power during outages and can increase savings with time-of-use rate optimization. Battery prices continue to decline, making storage increasingly cost-effective.
Does North Dakota have solar incentives?
North Dakota currently has limited state-level solar incentives, and the federal residential ITC (Section 25D) was repealed in early 2026. Solar can still pay for itself through electricity savings alone in 15.8 years.
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