Complete Guide to Solar Energy in North Dakota

Your complete resource for solar energy. Everything you need to know about solar laws, solar costs, solar financing, and solar installation in North Dakota.

11.64¢/kWh
Average Retail Electricity Price
100 kW
Net Metering System Size Limit
5 years
Solar Property Tax Exemption Period
1991
Net Metering Policy Adoption

Why Solar Makes Sense in North Dakota

Solar Resource Is Better Than Many People Expect

North Dakota’s official solar guidance says the state has a solar resource similar to or better than other states at a comparable latitude, which means solar can work well when the system is designed for local conditions and actual usage. North Dakota Department of Commerce

Net Metering Is Available for Small Renewable Systems

North Dakota’s current small-system framework allows renewable energy systems up to 100 kW, which gives homeowners, farms, and many small businesses a path to connect solar and reduce on-site electricity purchases. North Dakota Department of Commerce

Low Electricity Prices Make Proper Sizing Especially Important

Because North Dakota has one of the lowest average retail electricity prices in the country, solar savings depend heavily on correct system sizing, realistic production estimates, and maximizing on-site consumption. U.S. Energy Information Administration

State Tax Treatment Can Improve Project Economics

North Dakota offers a five-year property tax exemption for qualifying solar, wind, or geothermal devices installed in new or existing buildings or structures, which can help protect project value after installation. North Dakota Office of State Tax Commissioner

Quick Solar Facts

Average Retail Electricity Price: 11.64¢/kWh
Net Metering System Limit: 100 kW
Excess Generation Compensation: Avoided cost
Property Tax Exemption: 5 years
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2026 Updates

North Dakota Solar Property Tax Exemption Remains Available

North Dakota continues to offer a five-year property tax exemption for qualifying solar, wind, or geothermal devices installed in new or existing buildings or structures. For mixed-energy systems, the exemption applies only to the portion directly attributable to solar, wind, or geothermal energy.

North Dakota Solar, Wind or Geothermal Device Property Tax Exemption

North Dakota Small-System Compensation Still Depends on Avoided Cost

Under North Dakota’s current small-system framework, net excess generation is not credited at the full retail rate. Monthly surplus generation is purchased at the utility’s avoided cost rate, which makes accurate system sizing especially important in 2026.

North Dakota Department of Commerce Solar PV in North Dakota

North Dakota Solar Laws & Regulations

Net Metering System Eligibility

North Dakota’s small-system framework applies to renewable energy systems up to 100 kW. This makes the policy relevant for homes, farms, and many small commercial properties that want to offset on-site electricity use.

North Dakota Department of Commerce Solar PV in North Dakota

Solar Property Tax Exemption

North Dakota law provides a property tax exemption for installations, machinery, and equipment of systems using solar, wind, or geothermal energy. The exemption is valid for five years following installation and applies only to locally assessed property.

North Dakota Century Code Chapter 57-02

Solar Easements

North Dakota law allows solar easements to be created in writing and recorded like other easements. The law also requires the easement document to describe the angles, terms, and compensation provisions tied to protecting solar access.

North Dakota Century Code Chapter 47-05