Federal solar credit ended Dec 31, 2025
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Solar costs · North Dakota

Solar Panel Cost in North Dakota

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

A typical North Dakota home uses 1,029 kWh a month[1] of electricity. Covering that with solar takes a system of about 9.5 kW est.[1,2], which costs roughly $29,000 to $39,500 est.[1,2,3] before incentives at the state's median installed price. With North Dakota's average residential price of 12.46¢ per kWh[4], our model puts payback at about 19 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

On this page [ 7 ]

North Dakota solar at a glance

Average electricity price12.46¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use1,029 kWh/mo[1]2024 average
Solar output per kW1,294 kWh/yr[2]PVWatts estimate for Fargo
Median installed price$3.60/W[3]Estimate, before incentives
Typical system9.5 kWSized to cover 100% of use
Typical price$34,200Estimate, before incentives
Year-1 savings$1,530Estimate
Payback19 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: North Dakota net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in North Dakota by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in North Dakota.

SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4005,180$64019
6 kW$21,600$21,6007,760$97019
8 kW$28,800$28,80010,350$1,29019
10 kW$36,000$36,00012,940$1,54019
12 kW$43,200$43,20015,530$1,54022

Incentives that lower the price in North Dakota

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026

All North Dakota incentives, including utility and local programs →

How North Dakota utilities credit your solar

A North Dakota PSC rule entitles home solar systems of 100 kW or less on investor-owned utilities (Xcel Energy, Montana-Dakota, Otter Tail) to net energy billing, where exports run the meter backward and offset usage at the retail rate within each month. A month's leftover surplus is paid at the utility's avoided cost (Montana-Dakota: 2.69 c/kWh); rural electric cooperatives and municipal utilities set their own policies.[7]

We have not added every North Dakota utility yet, so the estimates on this page use the state-level rule: North Dakota net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).[5]

Full North Dakota net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in North Dakota?

At the state median installed price of $3.60 per watt est.[3], a 9.5 kW est.[1,2] system that covers a typical home's use costs about $34,200 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in North Dakota?

For a cash purchase at the state's average electricity price of 12.46¢ per kWh[4], our model estimates about 19 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

sources

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Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
  2. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. Montana-Dakota Utilities - Renewable / Solar Energy (read via Wayback Machine copy of 10 Oct 2026; live site returns HTTP 403 to automated requests)montana-dakota.com · checked Nov 5, 2026
  6. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  7. N.D. Admin. Code 69-09-07-09(3)(a), Small Power Production and Cogeneration - rates for purchasesndlegis.gov · checked Nov 5, 2026
  8. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026

State data last re-checked November 5, 2026.

Change log

  1. Monthly output per kW in Fargo updated to [64.8, 77.1, 119.8, 136.8, 133.3, 146.9, 160.4, 144.7, 106.2, 88.6, 61.2, 54.0] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  2. Average solar radiation on the panels in Fargo updated to 4.45 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  3. Solar output per kW in North Dakota (PVWatts, Fargo) updated to 1293.9 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).