North Dakota · Tax credit · Mid-stack program
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
Mid-stack program · late directory
North Dakota stacks 3 tracked programs; this tax credit sits beside peer levers on a 18.2-year modeled baseline.
- Stack3 programs
- In-state #2/2
- Type #5/9
- Baseline18.2 yr
In-state directory place #2 of 2 (late alphabet). National tax credit directory #5 of 9. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
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
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.
Where this tax credit sits in North Dakota's mid-size stack
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.
Other North Dakota incentives
Frequently asked questions
What is the ND Renewable Energy Tax Credit among North Dakota's mid-size programs?
How does the ND Renewable Energy Tax Credit work?
Who qualifies, and what does a late in-state directory place mean?
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 · North Dakota solar data · ROI calculator · All incentives.