North Dakota solar incentives are few. The state has one: your solar system is left out of your property tax for five years. The state income tax credit covers only systems installed before January 1, 2015, and no state rebate was open when we checked. The rest depends on your utility, which buys your extra solar power at a low price. A typical system costs about $32,402, so get your utility’s price in writing before you sign.
Recently changed: buyback prices are reviewed once a year. Montana-Dakota Utilities went from 2.760 cents to 3.416 cents per kWh on January 1, 2026. Xcel Energy went from 3.270 cents to 3.646 cents per kWh on March 1, 2026. Otter Tail Power’s current prices apply to bills from June 1, 2026.
The short list: what a North Dakota solar home can actually get
Four things are real for a home system. None of them lowers the price you pay the installer.
| Benefit | What you get | How you get it | Who qualifies | Status |
|---|---|---|---|---|
| Solar property tax exemption | 100% of the system’s value is left out of your property tax for five years | Your assessor leaves it out after you file form 24708, every year | Any home in the state | In force. No end date in the law. |
| Net energy billing | Your solar power counts against the power you buy. Extra power is bought at 3.416 cents per kWh (Montana-Dakota Utilities), 3.646 cents per kWh (Xcel Energy) or 4.571 cents per kWh (Otter Tail Power) | A lower electric bill, plus a small payment for extra power | Customers of those three utilities, with systems up to 100 kW | Open. Prices are reviewed every year. |
| Co-op buyback | Set by each co-op. Two examples: 4 cents per kWh at Verendrye Electric and 5.67 cents per kWh at Mountrail-Williams Electric | A credit or payment from the co-op, with a monthly charge on the account | Co-op members | Open. Terms differ by co-op. |
| Prairie Sun Community Solar | About $35 a year in bill credits for each panel, by the co-op’s estimate | Monthly bill credits, after you pay upfront for panels in a shared array | Cass County Electric members | Panels were still available when we checked on October 1, 2026. |
We found no state or utility rebate for home solar panels or batteries. The federal tax credit ended for home systems switched on after December 31, 2025. Your utility’s name is at the top of your electric bill.
What do Xcel Energy, Montana-Dakota Utilities and Otter Tail Power pay for extra solar power?
These three are North Dakota’s investor-owned utilities: companies owned by shareholders. The Public Service Commission (PSC), the state’s utility regulator, sets their rates. Its rule, N.D. Admin. Code 69-09-07-09, gives a solar system of 100 kW or less the right to net energy billing.
Net energy billing means your solar power is counted against the power you buy. Montana-Dakota Utilities and Xcel Energy do the count once per billing month. Power you use at home, or that offsets your use in the same month, saves you the full price of that power. If the month ends with extra, the utility buys it at its avoided cost. Avoided cost is what the utility would have paid to get that power somewhere else. It is far below the price you pay.
Otter Tail Power works differently. It pays its avoided cost for each kWh you send to its power lines. You can take one flat price, or prices that change by season and time of day.
Example: 100 extra kWh earn $3.42 at Montana-Dakota Utilities, $3.65 at Xcel Energy and $4.57 at Otter Tail Power’s flat price.
| Utility | Price for extra power | 100 extra kWh earn | Charge for solar customers | System size limit |
|---|---|---|---|---|
| Montana-Dakota Utilities | 3.416 cents per kWh, since January 1, 2026 | $3.42 | Metering charge of $0.06 a day | 100 kW |
| Xcel Energy | 3.646 cents per kWh, since March 1, 2026 | $3.65 | Metering charge of $3.25 a month | 100 kW |
| Otter Tail Power | 4.571 cents per kWh flat, or 3.703 to 5.681 cents by season and time of day, for bills from June 1, 2026 | $4.57 at the flat price | Metering charge of $1.33 a month | 100 kW |
| Verendrye Electric Cooperative | 4 cents per kWh | $4.00 | Grid access charge of $12 a month | Under 50 kW for this price |
| Mountrail-Williams Electric Cooperative | 5.67 cents per kWh | $5.67 | Administrative charge of $10 a month | 50 kW |
| Cass County Electric Cooperative | Not published. Ask the co-op. | Not published | You pay for a special meter | Under 40 kW |
Metering charges are for single-phase service, the normal home connection. Every price here can change. Ask your utility for its current rate sheet before you sign.
Watch out: Montana-Dakota Utilities and Xcel Energy do not carry credits from month to month. A July surplus is sold at the low price that month. It does not lower a January bill. A system sized to cover your whole year sells a lot of summer power cheaply.
Co-ops and city utilities write their own rules
The PSC rule applies only to investor-owned utilities. An electric cooperative, or co-op, is owned by its members, and its board sets the solar terms. City utilities set their own too. Each one has its own price, size limit and paperwork.
Verendrye Electric pays 4 cents per kWh for systems under 50 kW. A surplus credit carries over to later bills, and any credit left is paid out each May. Mountrail-Williams Electric pays 5.67 cents per kWh. That is its avoided cost, based on what it paid its own power supplier the year before.
Cass County Electric pays a rate it does not publish, for systems under 40 kW. McKenzie Electric buys extra power at its power supplier’s rate, which it does not publish either. If your co-op is not named here, ask it for its policy in writing.
Watch out: Count the monthly charge. Verendrye’s adds up to $144 a year. At 4 cents per kWh, you must sell 3,600 kWh a year just to earn that back. At Mountrail-Williams the charge is $120 a year, which takes about 2,116 kWh a year of extra power.
Otter Tail Power adds a small solar payment
Otter Tail Power’s rate sheet also lists a solar renewable energy credit of 0.3 cents per kWh. A renewable energy credit, or REC, is the proof that power came from a renewable source. If you take this payment, Otter Tail owns the RECs for the power it buys from you. If you turn it down, you keep them.
Source: Otter Tail Power, Small Power Producer Riders, PSC Case No. PU-26-51
Get quotes sized for what your utility pays
Your ZIP code starts a quote request with installers near you. Ask each one how much of the system’s power you would use at home and how much you would sell.
- Your utility changes the mathXcel Energy, Montana-Dakota Utilities, Otter Tail Power and each co-op pay different prices. A quote should name yours.
- No cost to compareRequesting quotes is free, and you never have to sign.
- Shared only with matched installersYour details go to the installers you are matched with.
How does North Dakota’s five-year solar property tax exemption work?
This is the one incentive written into state law, N.D.C.C. 57-02-08(27). Solar equipment on a new or existing building is exempt from local property tax for five years after installation. The exemption covers 100% of the system’s value. It also covers equipment that stores the solar power, so a battery that is part of the solar system counts.
It does not pay you anything. It stops the panels from raising your property tax during those years. After that, the assessor can count the system.
Example: North Dakota taxes a home on 9% of its assessed value. Assessed value is 50% of the assessor’s estimate of market value. So if panels would add $10,000 to that estimate, the exemption keeps $450 of taxable value off your bill each year. Your local tax rate is applied to that number.
- The form: form 24708, the Application for Exemption of Solar, Wind, or Geothermal Devices. It asks for the system’s cost and the date installation started.
- Where it goes: to your local assessor, not to the state.
- How often: every year. The Tax Commissioner says the application must be filled out annually.
- Mixed systems: if your system also uses another energy source, only the solar part is exempt.
Watch out: The form shows no due date. Ask your assessor when to file each year. Some listings show this exemption ending on December 31, 2025. The law has no end date, and the Tax Commissioner still lists the exemption.
Prairie Sun, solar easements and sales tax: the smaller pieces
None of these is large. Each one is worth knowing before you sign.
- Prairie Sun Community Solar: community solar means you pay for a share of a shared solar array and get credits on your own bill. Cass County Electric members pay upfront for panels in the co-op’s array in Fargo. The co-op estimates about $35 a year in credits per panel at today’s rates. It does not publish the upfront price, so ask before you reserve. The project runs 20 years from 2016, so a panel reserved now earns credits only for the years that are left. You cannot buy more than 75% of your lowest monthly use.
- Solar easements: an easement is a recorded agreement about how land may be used. Under N.D.C.C. 47-05-01.1 and 47-05-01.2, you and a neighbor can sign one that keeps their property from shading your panels. It is voluntary. The law gives you no automatic right to sunlight. The easement must be in writing and recorded with the county recorder.
- Sales tax: home solar equipment is taxed like other goods. State law charges the 5% state sales tax on retail sales unless the sales tax law lists an exemption, and it lists none for home solar. City and county tax can come on top. Ask your installer whether the quote includes sales tax.
- Homeowners associations: we found no North Dakota law that stops an association from restricting solar panels. Read your covenants before you sign.
Where a North Dakota solar quote overstates the money
- It values all your solar power at the price you pay for power. Only power you use, or offset in the same month, is worth that. Extra power sells for 3.416 cents per kWh at Montana-Dakota Utilities and 3.646 cents per kWh at Xcel Energy.
- It assumes summer credits pay for winter bills. Montana-Dakota Utilities and Xcel Energy settle each month and carry nothing over.
- You are a co-op member and it uses another utility’s rules. The state rule does not cover co-ops. Verendrye Electric adds $12 a month and Mountrail-Williams Electric adds $10 a month for solar accounts.
- It shows a federal tax credit for a system you own. That credit ended for home systems switched on after December 31, 2025.
- It lists a North Dakota tax credit. The state income tax credit covers only systems installed before January 1, 2015.
- You skip the yearly assessor form. The property tax exemption needs form 24708 each year of the five years.
Utility first, assessor second: the North Dakota paperwork
- Before you sign: get your utility’s buyback price in writing. Ask for the current rate sheet, the monthly charge for solar customers and what happens to extra power at the end of a month. Ask your installer how much of the system’s power you would use at home and how much you would sell.You, with your installer.
- Before installation: apply to connect. This is called interconnection: your utility’s approval to connect the system to its power lines. Xcel Energy, Montana-Dakota Utilities and Otter Tail Power also have you sign a small power production agreement. Co-ops have their own application and agreement.Your installer usually prepares it. You sign.
- Pick the billing service. At Xcel Energy it is Net Energy Billing, Rate Code D50. At Montana-Dakota Utilities it is Rate 95 with the net billing option. At Otter Tail Power you choose the flat-price rider or the time-of-day rider.You, with your utility.
- After installation: file form 24708 with your assessor. File it again each year of the five years. Ask the assessor for the due date.You.
- Read your first bills. Check the buyback price and the monthly charge against what you were told.You.
Compare North Dakota quotes that use your utility’s real buyback price
Enter your ZIP code to request quotes from installers in your area. Ask each one which buyback price and which monthly charge its savings figure uses.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free, no-obligation quotesRequest quotes from local installers. You decide if you go ahead.
- Home questions firstA few questions about your home come first. Name, email and phone come last.
- Test each quoteUse the list of overstated quotes on this page before you sign.
More North Dakota solar guides
North Dakota solar incentive questions
Does North Dakota Have a Solar Tax Credit?
No, not for a new system. North Dakota’s income tax credit for solar covers only systems installed before January 1, 2015. The federal credit ended for home systems switched on after December 31, 2025. The state’s one tax break is a property tax exemption that lasts five years.
Does North Dakota Have Net Metering?
It has net energy billing, which pays less. Xcel Energy, Montana-Dakota Utilities and Otter Tail Power must offer it for systems of 100 kW or less. Your solar power counts against what you buy, but extra power is bought at a low price: 3.416 cents per kWh at Montana-Dakota Utilities and 3.646 cents per kWh at Xcel Energy. Co-ops and city utilities set their own terms.
Do Solar Panels Increase Property Taxes in North Dakota?
Not for five years after installation, if you apply. File form 24708 with your local assessor each year. After that period the assessor can count the system.
Are There Solar Rebates in North Dakota?
We found none for home solar panels or batteries, from the state or from the utilities on this page. Cass County Electric says on its website that it does not rebate solar.
How Much Does Xcel Energy Pay for Solar Power in North Dakota?
Xcel Energy pays 3.646 cents per kWh for each month’s extra power, under Rate Code D50. That price took effect on March 1, 2026. There is also a metering charge of $3.25 a month. Power you use at home saves you the full price of that power instead.
Is Solar Equipment Exempt From Sales Tax in North Dakota?
No. State law charges the 5% state sales tax on retail sales unless the sales tax law lists an exemption, and it lists none for home solar equipment. City and county tax can come on top. The tax break for solar homes is on property tax, for five years.
Can You Join Community Solar in North Dakota?
Only where a utility offers it. Cass County Electric members can reserve panels in its Prairie Sun array and get bill credits of about $35 a year per panel, by the co-op’s estimate. Ask the co-op for the upfront price first.
Sources (19)
- North Dakota Office of State Tax Commissioner, Solar, Wind or Geothermal Device Property Tax Exemption (checked September 30, 2026): tax.nd.gov
- North Dakota Office of State Tax Commissioner, Application for Exemption of Solar, Wind, or Geothermal Devices, form 24708 (checked September 30, 2026): tax.nd.gov
- North Dakota Century Code chapter 57-02, sections 57-02-01, 57-02-08(27) and 57-02-27 (checked September 30, 2026): ndlegis.gov
- North Dakota Century Code chapter 57-38, section 57-38-01.8, income tax credit for energy devices (checked September 30, 2026): ndlegis.gov
- North Dakota Century Code chapter 47-05, solar easements (checked September 30, 2026): ndlegis.gov
- North Dakota Administrative Code chapter 69-09-07, small power production and cogeneration (checked September 30, 2026): ndlegis.gov
- North Dakota Public Service Commission, Case No. PU-25-276, Montana-Dakota Utilities Rate 95 compliance filing (checked September 30, 2026): psc.nd.gov
- North Dakota Public Service Commission, Case No. PU-25-276, Montana-Dakota Utilities 2026 avoided cost rate update (checked September 30, 2026): psc.nd.gov
- North Dakota Public Service Commission, Case No. PU-26-18, Northern States Power (Xcel Energy) small power production rate sheets (checked September 30, 2026): psc.nd.gov
- North Dakota Public Service Commission, Case No. PU-26-18, motion approving the rates effective March 1, 2026 (checked September 30, 2026): psc.nd.gov
- North Dakota Public Service Commission, Case No. PU-26-51, Otter Tail Power compliance filing, Sections 12.01 and 12.02 (checked September 30, 2026): psc.nd.gov
- North Dakota Public Service Commission, Case No. PU-26-51, Otter Tail Power initial filing, renewable energy credit payments (checked September 30, 2026): psc.nd.gov
- Verendrye Electric Cooperative, Schedule P-G Parallel Generation Rate (checked September 30, 2026): verendrye.com
- Mountrail-Williams Electric Cooperative, 2026 Rate Schedules, Schedule DG-1 (checked September 30, 2026): mwec.com
- Cass County Electric Cooperative, Net Billing Policy No. 325 (checked September 30, 2026): casscountyelectric.com
- Cass County Electric Cooperative, interconnection questions and answers (checked September 30, 2026): casscountyelectric.com
- Cass County Electric Cooperative, Prairie Sun Community Solar (checked September 30, 2026): casscountyelectric.com
- McKenzie Electric Cooperative, Policy 100 rate schedule, Rate SR-1 (checked September 29, 2026): mckenzieelectric.com
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
