Key insights
In North Dakota, typical residential solar system costs start between $21,500 and $43,000, depending on the size of the system.
Jump to insightAssuming an upfront purchase, it takes about 17.22 years to break even (when your savings with solar panels make up for the cost).
Jump to insightOver 25 years, North Dakota homeowners with solar panels avoid $17,361 in total utility costs on average.
Jump to insight6 factors to consider before getting solar panels in North Dakota
Electricity is relatively cheap in North Dakota, so you’ll save less going solar than the average homeowner in California or New York. Here’s what else to consider before making the switch:
1. Solar panel installation costs
System size is a big solar cost factor in North Dakota. A typical North Dakota household needs about a 10.8 kW system, which costs $46,440.
Depending on your energy needs, you might need a smaller or larger system.
As you compare quotes, you’ll hear installers talk about “cost per watt.” This is a little like “price per square foot" when you buy a house. It helps you compare the value of solar energy systems in different sizes.
Nationwide, a typical cost is between $2.50 and $5 per watt. In North Dakota, the average cost per watt is $3.82.
Solar panel costs by system size in North Dakota
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $21,500 | $25,800 | $30,100 | $34,400 | $38,700 | $43,000 |
2. Your current energy consumption
Look at your latest utility bills to see how much electricity your house needs each month. This tells you what size and capacity your solar system needs to be. A typical North Dakota household needs a system with a capacity of 10.8 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.
Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. In North Dakota, solar panels usually pay for themselves within 17.22 years.
3. North Dakota solar incentives
The 30% federal solar tax credit has expired, and North Dakota doesn’t offer major statewide solar rebates. The main statewide benefit is a five-year property tax exemption on the added value of qualifying solar equipment.
What to know about net metering in North Dakota
Net metering lets you use the solar power your home produces and earn compensation for extra electricity sent to the grid.
For customers of major investor-owned utilities, excess solar is generally paid at a lower rate than the retail price of electricity. That means you usually save more by using your solar power at home.
Rules vary by utility, especially for co-ops and municipal providers, so check your provider’s rates and rollover rules before installing solar.
For instance, Otter Tail Power Company buys excess generation from solar systems under 40 kW at retail rates, but Montana-Dakota Utilities uses net billing, which pays out less.
» MORE: North Dakota solar incentives
4. How you pay
If you can, it’s often financially strategic to pay for the whole thing upfront. You own the system from day one and don't have to pay interest. Of course, cash isn’t always an option. That’s when solar loans and leases come into play.
Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.
Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.
Monthly costs: solar payments vs. savings
Think of going solar in terms of your monthly costs. Given rising energy costs in North Dakota and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.
» SOLAR PANELS: Lease vs. buy
5. How long you plan to stay in your house
It takes years for electric bill savings to make up for the initial cost — about 17.22 years on average in North Dakota. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.
Solar panels last 25 to 30 years.
A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But by selling you would miss out on some of that $17,361 in total avoided utility costs over 25 years.
In other words, don't get solar panels just because you want to sell your house soon. Instead, consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen.
6. The solar company you hire
People have mixed experiences with solar companies. In the best-case scenario, it’s easy to make the switch and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for midtier solar equipment from a company with poor customer service and no follow-up or support.
One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.
Pros and cons of solar panels in North Dakota
Pros
- Long-term savings
- Better for the environment
- Low maintenance costs
- May increase home resale value
Cons
- Upfront costs
- Seasonal production variations
- Potential roof leaks
Is my house a good candidate for solar panels?
Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support a solar panel installation. Here’s what to think about before you commit:
- How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. North Dakota averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
- What is the size and angle of my roof? North Dakota (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on a north-facing roof, especially if the roof has a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
- What is the condition of my roof? You might have to replace your roof before installing solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.
- How old are my appliances? Make sure that your electrical loads are as small as possible. If you have an older refrigerator or air conditioning unit, for instance, it’s smart to upgrade before investing in solar panels. That way, you can get a smaller system, which will be cheaper overall.
Find solar companies in North Dakota
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in North Dakota to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Tesla Energy | Learn More | 1.9 |  | Cash, loan and lease | 2015 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | 2018 |
North Dakota solar FAQ
What are the benefits of solar panels in North Dakota?
Solar panels have several benefits in North Dakota:
Cheaper energy bills: The average homeowner in North Dakota uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
What are the drawbacks of solar panels in North Dakota?
Solar panels have several drawbacks in North Dakota:
Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates decline in North Dakota. That way, you can store energy at home instead of tapping into the local grid when you need to.
Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
» MORE: Solar energy pros and cons
How much can I save with solar panels?
On average, North Dakota homeowners with solar panels avoid $17,361 in total utility costs over 25 years. It’s a common misconception that solar panels will completely eliminate your monthly power bill — this is not always the case. Still, you’ll likely be paying much less than you would with traditional utility bills.
» EXPLORE: Where solar savings go the furthest
Is my HOA allowed to restrict solar panels?
North Dakota has no state laws that prevent homeowners associations from restricting solar panel installation.
How long does it take to install solar panels in North Dakota?
Installation times depend on a range of factors, especially seasonality and supply chain issues. The actual installation might take only a day, but it takes time to design and plan; you also have to activate the system.
Bottom line: Is going solar in North Dakota worth it for you?
Going solar in North Dakota might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.
Solar costs vs. savings: North Dakota and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Minnesota | $19,676 | $32,794 | 7.6 kW | $3.28 | $18,463 |
| Montana | $15,947 | $26,579 | 7.1 kW | $2.66 | $30,784 |
| North Dakota | $25,800 | $43,000 | 10.8 kW | $3.82 | $17,361 |
| South Dakota | $24,641 | $41,069 | 8 kW | $4.11 | $8,381 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
DSIRE, "North Dakota Programs." Accessed Sept. 8, 2026.
Solar Energy Industries Association, "North Dakota Solar." Accessed Sept. 8, 2026.
SolarReviews, "How much do solar panels cost in North Dakota?" Accessed Sept. 8, 2026.
U.S. Environmental Protection Agency, “Solar Power Purchase Agreements.” Accessed Sept. 8, 2026.
North Dakota Legislative Council, “CHAPTER 69-09-07 Small Power Production and Cogeneration.” Accessed Sept. 8, 2026.
North Dakota Office of State Tax Commissioner, “Property Tax Credits & Exemptions.” Accessed Sept. 8, 2026.
