Solar Savings in North Dakota – With an impressive 4.65 hours of peak sunlight daily, North Dakota is a promising state for solar energy. Installing a solar PV system not only reduces your electricity bills but can also significantly cut your upfront costs, thanks to an array of incentives and rebates. Here’s a breakdown of the key programs that make going solar in North Dakota a smart financial move.
Claim 30% of your solar costs with the federal solar tax credit (ITC)
The federal government is committed to promoting clean energy adoption, and the Solar Investment Tax Credit (ITC) is one of its most impactful initiatives. This program allows homeowners to deduct 30% of the total cost of their solar installation from their federal income taxes.
The ITC covers more than just the solar panels—it includes expenses like shipping, installation, and additional equipment. For example, if your system costs $10,000, you can receive a $3,000 tax credit. To take advantage of this incentive, ensure you fill out the necessary forms and submit them when filing your taxes.
Turn extra energy into savings with net metering
North Dakota’s net metering program allows homeowners to earn credits for any excess electricity their solar panels generate. Instead of storing surplus energy in batteries, you can send it back to the grid and receive credits to offset future utility bills.
For customers of investor-owned utilities, the value of these credits is equal to the full retail electricity price. If you have unused credits at the end of the month, they are purchased by the utility at the avoided cost rate, a slightly lower value. Additionally, homeowners retain Renewable Energy Credits (RECs) for their own use, while any RECs from net excess generation are transferred to the utility with appropriate compensation.
Earn $300–$1,000 annually by selling RECs
Generating clean energy with your solar system also earns you Renewable Energy Credits (RECs)—certificates awarded for every megawatt-hour (MWh) of electricity produced. Unlike net metering, you don’t need to sell energy to participate in this program.
RECs are market-based assets, and their value fluctuates, much like stocks. A typical 10 kW solar system could earn you anywhere from $300 to $1,000 annually by selling these credits.
To get started, you’ll need approval from the North Dakota Public Service Commission and an account with the Midwest Renewable Energy Tracking System (M-RETS). Once set up, you can begin tracking and trading your RECs, turning your solar energy production into a steady income stream.
Save on property taxes with the renewable energy systems tax exemption
Installing a solar PV system can increase your home’s value by about 4%, according to a Zillow report. However, in North Dakota, you won’t face higher property taxes due to this added value—at least not for the first five years.
Under the Renewable Energy Systems Tax Exemption, 100% of the increased value from installing solar panels is exempt from property taxation for five full assessment years. To benefit from this program, reach out to your local tax assessor and file the necessary paperwork.
Ensure uninterrupted sunlight with solar easements
Solar panels rely on consistent sunlight to operate efficiently, and shading from neighboring trees or structures can significantly impact their performance. A solar easement is a voluntary agreement between property owners that protects your system’s access to sunlight.
This legally binding contract outlines specific protections, such as restricting certain types of vegetation or structures that could block sunlight from reaching your panels. Solar easements are tied to the land itself, not the individual owner, ensuring long-term protection.
To establish a solar easement, the agreement must be documented in writing and meet general property easement requirements. It should include a detailed description of the protected area, a list of restrictions, and terms for revising or terminating the agreement.
Solar savings in North Dakota – Why go Solar?
Thanks to a combination of abundant sunlight and robust incentives, solar power in North Dakota offers exceptional long-term savings and environmental benefits. Programs like the federal tax credit, net metering, and property tax exemptions make solar energy an accessible and profitable choice for homeowners.
Whether you’re looking to reduce energy bills, earn income through RECs, or protect your panels with solar easements, North Dakota provides the tools and incentives to make your solar journey smooth and rewarding.
Now is the perfect time to harness the sun’s power and take advantage of these incredible programs. By going solar, you’re not just investing in your home—you’re contributing to a cleaner, greener future.
If you have questions or need personalized guidance about going solar in North Dakota, Sunhub is here to help! Our team can walk you through incentives, installation options, and more to ensure you get the most out of your solar investment. Reach out to Sunhub today and start your journey toward clean, affordable energy!