North Dakota is a great location for solar systems, with more than 200 sunny or mostly sunny days per year. providing a moderate amount of sunlight for solar energy initiatives. While it may not have as many sunny days as some other states, North Dakota’s weather conditions still offer opportunities for viable solar power projects. The state actively supports renewable energy through various incentives and programs aimed at encouraging solar adoption. Here are some of the solar incentives available to homeowners and businesses in North Dakota:
Table of Contents
Federal Incentives
Federal Investment Tax Credit (ITC)
Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met.
Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026.
Commercial Depreciation
Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years.
The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:
- Project cost = $800,000
- 30% credit = $240,000
- Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000
A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off.
Net Metering:
North Dakota requires investor-owned utilities to offer net metering to all customers; electric cooperates and municipal utilities are exempt from the net metering regulation. For customers of investor-owned utilities, the electric company is required to cut you a check for all surplus energy at the utility’s avoided-cost rate. All systems up to 100 kW in size are eligible for net metering .
Property Tax Exemption:
North Dakota offers a property tax exemption for solar, meaning it will not increase property taxes despite increasing the assessed value of a home.
Further information and programs can be found at the Programs.Dsireusa.org
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