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North Dakota

Solar & Net Metering Policy

Available
Net Metering
None
State Tax Credit
30%
Federal ITC
None
SREC Market

Net metering is available in North Dakota, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Investor-owned utilities must purchase excess generation from systems up to 100 kW. North Dakota does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value.

Full Policy Details

Net Metering AvailableYes
Net Metering RateAvoided cost
State Tax CreditNone
Federal ITC (30%)Applies
SREC MarketNone
Utility RebatesNone
Property Tax ExemptionYes
Sales Tax ExemptionNo
Interconnection StandardPSC standardized rules

Net Metering Notes

Investor-owned utilities must purchase excess generation from systems up to 100 kW.

How North Dakota Compares to Neighboring States

StateNet MeteringState CreditProperty Tax ExemptSales Tax Exempt
North Dakota ★YesNoneYesNo
MinnesotaYesNoneYesYes
MontanaYesNoneYesYes
South DakotaNoNoneYesNo

Frequently Asked Questions — North Dakota Solar Incentives

Does North Dakota have net metering?

Yes. North Dakota has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Investor-owned utilities must purchase excess generation from systems up to 100 kW.

What solar tax credits are available in North Dakota?

North Dakota does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.

What is the federal solar tax credit and does it apply in North Dakota?

The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in North Dakota for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.

Is solar equipment exempt from property tax in North Dakota?

Yes. North Dakota offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.

Is there a sales tax exemption for solar in North Dakota?

North Dakota does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.

Does North Dakota have an SREC market?

North Dakota does not currently have an active SREC market. Solar owners in North Dakota cannot generate additional income through SREC sales at this time.

Are there utility rebates for solar in North Dakota?

Statewide utility rebates are not currently available in North Dakota. Some local utilities may offer their own programs — contact your utility directly for any available incentives.

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Official Source

North Dakota Public Utility Commission

View Official Site →

Last verified: 2026-03-24 · Always confirm current incentives before installing solar.