How much do solar panels cost in North Dakota?
Residential solar panel installations can cost from $10,000 to $30,000 or more, with individual costs varying. North Dakotans pay an average of $26,620 for their system before they qualify for incentives or tax credits.
It's no surprise that the smaller your system, the less you'll pay. A typical home in North Dakota needs an 11-kilowatt (kW) system to offset enough electricity costs to sustain solar power.
Average cost of solar panels by system size in North Dakota
| 8 kW | 9 kW | 10 kW | 11 kW | 12 kW | 13 kW | 14 kW | |
|---|---|---|---|---|---|---|---|
| Before the federal tax break | US$19,360 | US$21,780 | US$24,200 | US$26,620 | US$29,040 | US$31,460 | US$33,880 |
| After the federal tax break | US$13,552 | US$15,246 | US$16,940 | US$18,634 | US$20,328 | US$22,022 | US$23,716 |
Should You Use Solar Panels in North Dakota?
Dark winters and cheap coal power have long made North Dakotans skeptical of solar power. However, as cheaper and more efficient devices hit the market, more households are looking at solar panels in a new light, both for cost savings and environmental reasons. Homeowners equipped with solar panels save an average of $26,028 over 25 years.
Electricity is relatively cheap in North Dakota, so going solar will save you less than the average homeowner in California or New York, where solar systems typically pay for themselves in eight years.
The most obvious downside to solar power in North Dakota is the high upfront cost. Solar panels are a good investment, and the lifetime income motivates many to make the switch Backing up power during outages and helping to protect the planet has real benefits that go beyond dollars and cents.
"Still not convinced? Pros and cons of solar power
Cost factors for switching to solar power in North Dakota
Your solar system is worth what you put into it. Higher quality panels, special features, resolution and more add to the price. Here are some of the main factors that determine the cost of a solar power system and what to expect.
Your system dimensions
The size of your system is an important factor in how much you will pay for solar panels in general. It's no surprise that the smaller your system, the less you'll pay. The average solar panel size in North Dakota is 11 kW.
With a little quick calculation, you can determine which size system you need. First, determine how much electricity you used last year in kilowatt-hours (kWh). This information can be found on your online energy bill dashboard. Then divide the annual kWh by 1,200 to determine the system size you need.
For example, a typical home in North Dakota uses 12,492 kWh per year. Using this formula, a typical household would need a 10.5 kW system.
"What's the difference? Kilowatt-hour vs. kilowatt-hour
The cost of the solar system
Solar panels are usually priced per watt. In North Dakota, a solar panel costs an average of $2.42 per watt. The performance of your solar panels can affect how much you pay for your system. Here are some average costs you can expect for other devices:
How do you pay?
You can pay the full cost of your solar system upfront, but most people finance solar panels. A solar loan works like any other type of loan: there is an application and approval process, and you pay back the interest amount over time. Sometimes it's cheaper to rent solar panels upfront, but you can't claim a tax credit.
When considering a solar loan, lease or purchase agreement (PPA), always ask:
- Do you have a deposit?
- How much can I pay per month?
- When and how much does the monthly payment increase?
- Will you force my house?
» Solar panels: Rent vs Buy
The condition of your roof
High quality solar panels should last 25 to 30 years, so your roof should last longer. Inspect your roof to make sure it is fit for purpose. Otherwise, if you need to repair your roof, you will have to pay for panel removal, repair and re-roofing.
» Should I: Should I replace my roof before going solar?
Local permits and taxes
If you're planning to install a solar system, it's a good idea to check your city's regulations on required permits beforehand to see how much it costs. You may not need these permits if you live out of town, but it's always good to check.
Many solar companies take care of the permitting process. When entering into a contract, be sure to ask if the company you are considering offers this service. This can make your solar installation run more smoothly.
» Tips: How to get the best deal on solar power
Solar Incentives, Tax Credits and Rebates in North Dakota
The federal Solar Investment Tax Credit (ITC) is one of the most important ways to reduce solar costs in North Dakota. If you install a home solar system by the end of 2032, you will receive a federal income tax credit equal to 30% of the total cost of your solar system, including equipment, labor and permits.
The credit will drop to 26% in 2033 and 22% in 2034. North Dakota also offers property tax incentives for residents who go solar as a local incentive.
» Find out: Solar incentives in North Dakota
Compare North Dakota Solar Companies
Compare the top solar companies in North Dakota below. For more information, see our guide to finding the best solar companies.
Frequently Asked Questions
Can I get free solar panels in North Dakota?
North Dakota doesn't have a free solar panel program, but you can lease them or sign a power purchase agreement (PPA) with virtually no upfront cost. However, none of them are completely free. Solar panel leasing usually requires a fixed monthly fee. With a PPA you pay per unit of electricity.
» Free solar panels: are they really free?
How Much Does Solar Power Cost in North Dakota?
According to the Solar Energy Industry Association, the cost of solar power in North Dakota has dropped 43 percent over the past 10 years.
Is it cheaper to install solar modules yourself?
Choosing to install the system yourself can potentially save you a lot of money, but it's dangerous if you don't know what you're doing.
How does net metering work in North Dakota?
If your solar system produces more power than you need, you can sell the excess to your local power company. This process is called pure measurement.
In North Dakota, power companies must buy excess electricity from their customers. To qualify for net metering, your system must have a capacity of less than 100 kW, which is possible because the average system size in North Dakota is typically around 11 kW. However, this only applies if you use an investor-owned electric company rather than a municipal utility or electric cooperative.
last row
North Dakota may not have the cheapest solar energy in the US, but thanks to the ITC and local solar incentives, solar power can still be within your reach. Benefit value investing. Over 25 years, you can save an average of about $26,028.
Solar Panel Costs: North Dakota Compared to Neighboring States
| Upfront cost* | Federal Tax Credit Amount (30%) | Average consumption per watt | Maturity** | General system dimensions | Estimated net savings | |
|---|---|---|---|---|---|---|
| Minnesota | US$22,720 | US$6816 | $2.84 | 1 2 years | 8 kW | US$17,546 |
| Montana | US$22,860 | US$6858 | US$2.54 | 13 years | 9 kW | US$15,189 |
| North Dakota | US$26,620 | US$7986 | US$2.42 | 13 years | 11 kW | US$26,028 |
| North Dakota | US$25,094 | US$7528 | $2.39 | 1 2 years | 10.5 kW | US$22,923 |
| Wyoming | US$23,130 | US$6939 | $2.57 | 13 years | 9 kW | US$14,959 |
*Federal Investment Tax Credit (ITC); ** With full advance payment
Essay Resources
Consumer affairs writers base their work primarily on original research from government data, industry experts, and other reputable publications. Specific sources for this article include:
- EcoWatch, "Cost of Solar Panels in North Dakota." Accessed on 19 November 2023
- Energize, "Cost of Solar Panels in North Dakota." Accessed on 19 November 2023
- Office of Energy Efficiency and Renewable Energy, "A Homeowner's Guide to Federal Solar Photovoltaic Energy Tax Credits." Accessed on 19 November 2023
- Solar Energy Industry Association, North Dakota Solar. Accessed on 19 November 2023
- DSIRE, "North Dakota Program." Accessed on 19 November 2023
