Is Solar Worth It in North Dakota in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for North Dakota homeowners — without the federal ITC.
Cost Per Watt
$2.80
installed
Electricity Rate
$0.180
per kWh
Payback (No ITC)
14.6 yr
current reality
Payback (With 30% ITC)
10.2 yr
hypothetical
25-Year ROI
72%
return on investment
Incentive Breakdown — North Dakota
Available incentives for a typical 7kW residential solar system in North Dakota
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneNorth Dakota does not offer a state tax credit for solar installations.
SREC Market
Not AvailableNorth Dakota does not have a traditional SREC market.
Property Tax Exemption
No statewide property tax exemption for solar
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: No major state-level incentives currently available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in North Dakota
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC
- $0
- Net Cost
- $19,600
- Annual Savings
- $1,346/yr
- Payback Period
- 14.6 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC (30%)
- -$5,880
- Net Cost
- $13,720
- Annual Savings
- $1,346/yr
- Payback Period
- 10.2 years
Impact: Without the federal ITC, North Dakota homeowners face a 4.4-year longer payback period — paying $5,880 more out of pocket.
Net Metering Policy — North Dakota
How North Dakota compensates your excess solar production
Reduced export credits or net billing — you earn less than retail for excess solar. Moderate impact on payback.
North Dakota mandates net metering but compensates at the utility's avoided cost, below retail rate.
Cost Per Watt Benchmark — North Dakota
North Dakota Average
$2.80/W
National Average
$3.05/W
Typical 7kW System
$19,600
North Dakota's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in North Dakota breaks even in 14.6 years. With the former 30% ITC, payback would drop to 10.2 years.
Without Federal ITC
14.6
years to break even
With Former 30% ITC
10.2
years to break even
Production Details
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