North Dakota Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

North Dakota has a little of everything that make the northern plains great: wide open spaces, phenomenal archeological digs, Painted Canyon, and Native American and pioneer historic sites. Oh, it also has ranches, wineries, and the Maah Daah Hey trail – with 97 miles of some of the best single track biking around. All of that history and outdoor excitement needs clean solar power to preserve it for generations to come. How has the North Dakota legislature done with promoting renewable energy? Read on…

STATE LEGISLATION
Renewable Portfolio Standard
In March of 2007, the North Dakota legislature took a step in the right direction, setting a renewable energy standard of 10% to be reached by 2015. That means that 10% of all the energy generated in the state must come from renewable sources. The only drawback is that this is just an objective, so if any particular utility company doesn’t meet that goal, there are no consequences.
Also in 2007, the state legislature passed a property tax exemption for your solar power equipment. That means that the increase in your property value from installing a solar electricity system doesn’t raise your taxes. That exemption continues for 5 full years after you install the system.

NET-METERING

North Dakota’s net-metering policy dates back to 1991 and systems up to 100kW in capacity are eligible. The best part of the regulation is that if you generate more than you use in a particular month, the utility company is required to pay you for it at the going wholesale rate.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

Passed back in 2001, the Renewable Energy Tax Credit gives North Dakota residents the ability to take a 3% tax credit each year for the cost of their renewable energy generation equipment. That credit lasts for 5 years, so you can take up to 15% of the cost of your system off on your taxes overall.
As of 2007 your solar power equipment is also exempt from property tax. All of it; you pay nada when it comes to the increase in property value from your solar panels.
Here’s more information on the rebates and incentives for solar power in North Dakota:

Corporate Tax Credit

* Renewable Energy Tax Credit (Corporate)

Personal Tax Credit

* Renewable Energy Tax Credit (Personal)

Property Tax Exemption

* Geothermal, Solar and Wind Property Exemption

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

You live in Fargo and you’ve decided to take the plunge and set up your own solar electricity system. Great idea! Here’s an example of what your system might be like. First things first; North Dakota has a Good solar rating, so you’ll have no problem finding enough sunlight to get your system fired up. Equipment and installation will run you about $58,500. Don’t forget though that the state gives you a tax credit for 15% of the cost (That’s $8,775!), and you can take a $2,000 federal tax credit too. With that in mind your system should pay for itself in about 29 years (assuming an average usage of 1,300kWh/month at $0.0748/kWh). It gets better though, since you’ll save about $844 every year on your utility bills. And that’s not all; since electricity prices are estimated to rise to $0.081/kWh in 5 years, and to a whopping $0.123/kWh in 25 years, your savings will continue to rise every year. But wait, there’s more… check out some more key points about your system:

• 650 square feet of roof area required
• $10,060 estimated property value increase – tax exempt!
• $21,107 estimated utility savings over 25 years
• 313.5 tons of CO₂ kept out of the atmosphere; that’s equal to taking 55 cars off the road or planting 918 trees!

CONSENSUS

Well, compared with South Dakota and some of the other neighboring states, the North Dakota legislature is leaps and bounds ahead when it comes to solar energy. With a nod toward a renewable energy standard and some nice incentives, North Dakota has started to wean itself off of fossil.

Click here to have multiple solar installers bid to upgrade your North Dakota home or business.