North Dakota · Tax credit
ND Renewable Energy Tax Credit
Reduces residential solar owners' tax liability in North Dakota -- see the credit amount, who qualifies, and how it shortens payback below.
- 3% of installed cost
- stated benefit
- Residential
- eligible customers
- 18.2 yr
- North Dakota baseline payback
- 2
- other North Dakota programs
What it means
In North Dakota, a 6 kW system already pays back in about 18.2 years on ~$908/year of modeled savings, and the ND Renewable Energy Tax Credit stacks on top of that, on top of any federal credit.
- 3% of installe…
- stated benefit
- 18.2 yr
- baseline payback (pre-incentive)
- 3
- North Dakota programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
North Dakota income tax credit for renewable energy systems.
Program at a glance
- Program type
- Tax credit
- Eligible customers
- Residential
- Stated benefit
- 3% of installed cost
- State electricity rate
- 10.8¢/kWh
- North Dakota solar score
- 24/100
How North Dakota compares to the U.S. average
Why this incentive matters more (or less) here - North Dakota's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
North Dakota's solar incentive stack
How this tax credit sits among North Dakota's 2 tracked programs, by type
- Net metering
Net metering
1 programs
- Tax credit
Tax credit
1 programs
What this shows North Dakota tracks 2 incentive types; 1 of them, including this one, are tax credits. Credits reduce what solar owners owe directly, on top of whatever the other stacked types provide.
How this incentive fits North Dakota's solar picture
The ND Renewable Energy Tax Credit is a state-level credit against what you owe, tracked as one of North Dakota's solar incentives in the DSIRE registry. Eligibility is scoped to residential customers, with a stated benefit of 3% of installed cost. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. North Dakota averages 4.8 kWh/m²/day of usable sunlight and residential rates of 10.8¢/kWh, producing an estimated 8,410 kWh/year and $908 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 18.2-year simple payback and a 25-year modeled net of roughly $6,200 before this incentive - every dollar this tax credit delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. North Dakota has 3 solar incentive programs indexed in DSIRE, including adjacent options like ND Net Metering. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See North Dakota's full solar profile, score, irradiance, rates, payback, and every program you can claim. North Dakota solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other North Dakota incentives
Frequently asked questions
What is the ND Renewable Energy Tax Credit?
How does the ND Renewable Energy Tax Credit work?
Who is eligible for the ND Renewable Energy Tax Credit?
How does this incentive affect solar ROI in North Dakota?
Are there other solar incentives in North Dakota?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.