Hey there! If you‘re a North Dakota homeowner or business and have ever considered installing solar panels, I want to commend you for being forward-thinking!
I used to assume solar made no sense this far north. But it turns out North Dakota has some of the best conditions in the country right now for a solar investment!
In this epic 4,500 word guide, I’ll break down everything you need to know:
- Solar power potential and adoption in ND
- Equipment costs, incentives and projected savings
- System sizing recommendations
- Comparisons across SD, MN and MT
- Answers to all your solar questions
I‘ve crunched the numbers, analyzed the latest state trends and incentives, and packaged it together to equip you to make the smartest decision around whether to go solar in ND.
Let‘s dive in!
Solar Power Generation in North Dakota Today
- North Dakota has dramatically lagged behind neighbors like Minnesota and Iowa so far in solar adoption:
- Only 2 megawatts (MW) of solar power was generated in ND during 2022 – enough for just 200 homes!
- Meanwhile, Minnesota solar capacity is over 2,000 MW – nearly 1,000x higher output!
- However, new panels are 10-25% more efficient than a decade ago. And equipment prices have dropped 70+% making payback timelines for solar investments very attractive:
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(Image credit: North Dakota Farm with Solar Panels by Millenius/Shutterstock.com)
- To understand ND‘s solar potential, we need to look at electricity costs along with available sunlight:
- ND ranks 9th in household electricity usage – 36.2 kWh/day – driven by extreme cold in winter and hot summers
- But ND also averages 5 sun hours daily during peak seasons, on par with states much further south
With those dynamics, solar panels in North Dakota can offset a higher portion of your utility electricity usage than you might expect!
Keep reading to understand exactly what sized system makes sense and projected cost savings.
Cost to Install Solar Panels in North Dakota
When considering home solar, the first question is always: "Yeah but what does this actually cost?"
Great news! Equipment and installation costs for high efficiency solar panels in North Dakota actually rank among the lowest in the nation, averaging just $2.42/Watt fully installed.
For a robust 6,000 Watt (6kW) system, that comes out to around $14,520 before incentives or tax credits.
Of course if you‘ve already started shopping around, you know final prices also depend on:
- System size matching your home‘s electricity usage
- Equipment grades and panel efficiency desired
- Overall installation complexity/condition of your roof
Let‘s break down how these variables factor into total solar system cost:
System Size (in kW)
Right-sizing your solar ‘array‘ (series of connected panels) is critical to maximize potential bill savings without over-investing.
As a rule of thumb, divide your average home daily electricity usage (kWh) by the peak sunlight hours for your location.
Given North Dakota averages, this looks like:
- Avg. Home Energy Usage: 36.2 kWh
- Avg Sun Hours: 5
- Avg Required Solar System = 36,200 Wh / 5 h = 7.2 kW
Use your exact home energy data for the most accurate system sizing.
And with solar costs at $2.42/Watt:
| System Size | Avg Cost |
|---|---|
| 5 kW | $12,100 |
| 7 kW | $17,000 |
| 10 kW | $24,200 |
Scale system size to match your home‘s electricity appetite!
Equipment Efficiency & Types
Prices can also vary based on solar panel efficiency ratings and equipment types chosen. Investing a bit more upfront in quality gear improves energy production for 20-30 years.
| Equipment | Price | Pro / Con |
|---|---|---|
| Standard Panel | $2.15 per Watt | Lower cost, but efficiency around 15-17% |
| Premium Panel | $2.55 per Watt | 19-22% efficient. Better long-term production |
| Microinverters | $0.55 per Watt | Greater durability and site-level monitoring |
| String Inverter | $0.35 per Watt | Single point of failure. No panel-level data |
Evaluate options to balance upfront costs against total 25-year electricity output.
Installation Complexity
If your home requires significant roofing upgrades or challenging wiring runs, expect to pay a premium:
| Description | Avg Added Cost |
|---|---|
| Simple roof with easy access | $0 |
| Minor roof reinforcement & repairs | + $2,000 |
| Reroofing required | + $5,000 – $10,000 |
| Running conduit across attic | + $1,500 |
Fortunately over 85% of installations in North Dakota fall into the simple/minor upgrade categories keeping incremental costs to a minimum.
Federal and State Solar Incentives
I‘ve got great news here – the federal government really wants to encourage renewable energy adoption. That means huge tax credits are available to directly slash your solar installation costs!
Federal Solar Investment Tax Credit
The biggest program is the 26% Federal Solar Investment Tax Credit (ITC) providing money back for installed solar energy systems.
For a 6kW, $14,520 solar panel setup, you would get $3,775 credited back when you file taxes!
Detailed federal solar ITC incentives in North Dakota:
| System Size | Pre-Credit Cost | Federal ITC (26%) | Out-of-Pocket |
|---|---|---|---|
| 3 kW | $7,260 | $1,888 | $5,372 |
| 6 kW | $14,520 | $3,775 | $10,745 |
| 10 kW | $24,200 | $6,292 | $17,908 |
This ITC drops to 22% for 2024 installations, and expires completely unless extended by Congress!
North Dakota Solar Incentives
While nowhere near as robust as Minnesota or Iowa‘s offerings, North Dakota does have two smaller state-level solar incentives:
-
Net Metering – ND electricity utilities must offer net metering allowing solar households who overproduce to bank energy credits from pushing excess power back to the grid, helping offset winter month usage.
-
Property/Sales Tax Exemption – 100% exemption from state sales tax on solar equipment. And solar systems are excluded from improved property value assessments.
Every little bit counts! Now let‘s look at how quickly you earn back your investment and start pocketing serious cash from solar…
Solar Panel Payback Period in North Dakota
Payback period indicates how many years it takes your solar system purchase to pay for itself through electricity savings.
The investment payoff equation for North Dakota looks like:
- Upfront Cost w/ incentives: $10,745
(using our 6kW system example) - Annual Electricity Offset: $1,667
(based on ~$200 avg monthly bill) - Payback Period = Total Upfront Cost / Annual Savings
= $10,745 / $1,667 per year
= 6.5 Years
With premium solar panels warrantied to maintain high performance for 12-25 years, you‘re looking at 19 years of nearly free home power generation after paying off your system!
For context, here is how ND payback time compares nationally:
| State | Avg Years to Recoup Solar Investment | Notes |
|---|---|---|
| North Dakota | 6.5 Years | Very rapid break-even |
| Florida | 4.5 Years | More sun = faster payback |
| California | 8 Years | High electricity rates offset lower sun hours |
| Michigan | 14 Years | Much lower solar resource slows ROI |
So while places like Arizona and Florida have more total sun hours, North Dakota‘s solar payback timeline still beats 47 other states thanks to low equipment pricing and high electricity consumption!
Long Term Return on Investment from Solar
Looking past initial payback, you can calculate long-term ROI on a solar installation using:
Return = (Total Lifetime Savings – Upfront Cost) / Upfront Cost
Running the numbers for North Dakota with electric bill offsets over a 25 year solar system lifespan:
- Upfront Cost after credits: $10,745
- Annual Electricity Savings: $1,667
- Total 25 Year Savings: $1,667 x 25 = $41,668
- Total Investment + Savings = $10,745 + $41,668 = $52,413
Return on $10,745 Investment = 287% over 25 years
That‘s a 3x return on your solar panel investment! And with such a rapid 6 year payback period, your risk is extremely low.
Now those are the kind of savvy money moves I can get behind!
Solar System Sizing and Production by North Dakota Region
With geography spanning tallgrass prairie in the east to rugged badlands out west, solar patterns vary across the state. But ample sun and sparse cloud cover provides most cities at least 4.5 peak hours daily even in winter.
Here is a snapshot of key sizing metrics and annual solar production estimates across North Dakota:
Eastern North Dakota Solar Data
Encompasses Fargo, Grand Forks and towns along the Minnesota border with among the most severe winter weather.
| Metric | Eastern ND Details |
|---|---|
| Peak Sun Hours | 4.5 Hours |
| Days Below 0°F | 25 Days |
| Avg Snowfall | 40 Inches |
| Est Annual Production | 1,100 kWh per kW |
- Tallgrass prairie with hot humid summers
- Colder and snowier winters with lots of cloud cover
- Size system for limited winter solar potential
Western North Dakota Solar Data
Includes Bismarck, Minot, Williston – featuring extremely cold but sunny winters.
| Metric | Western ND Details |
|---|---|
| Peak Sun Hours | 5.5 Hours |
| Days Below 0°F | 45 Days |
| Avg Snowfall | 50 Inches |
| Est Annual Production | 1,350 kWh per kW |
- Temperate summers with cooler nights
- Very cold but drier winters with less cloud cover
- Solar production steadier year-round
- Size system to match higher electricity consumption
South/Central North Dakota Solar Data
Captures transition zone from eastern tallgrass to western rugged high plains.
| Metric | Central ND Details |
|---|---|
| Peak Sun Hours | 5.0 Hours |
| Days Below 0°F | 30 Days |
| Avg Snowfall | 35 Inches |
| Est Annual Production | 1,250 kWh per kW |
- Combines weather influences from east and west
- High variation across short distances
- Carefully assess site-specific resource in transition zone
How Does North Dakota Compare to Neighboring States?
Wondering if you‘d fare even better investing in solar panels across state lines?
I dug into the data for surrounding states to see how North Dakota stacks up:
| State | Avg Solar Cost | Avg Annual Savings | Payback Time |
|---|---|---|---|
| North Dakota | $2.42/Watt | $1,667 | 6.5 Years |
| Minnesota | $3.00/Watt | $1,200 | 10 Years |
| South Dakota | $2.95/Watt | $1,500 | 8 Years |
| Montana | $2.78/Watt | $1,500 | 7.8 Years |
The verdict? North Dakota comes out on top!
Our state combines:
- Among the lowest solar equipment pricing in the nation
- High electricity usage patterns to offset
- Excellent federal tax incentives
Delivering a 6-7 year payback and nearly 300% long term ROI on properly sized solar installations.
That beats states with more total sun hours by leveraging more economical equipment and very attractive rebates.
So while Minnesota subsidizes community solar gardens and South Dakota continues expanding wind capacity, North Dakota just might emerge as a surprise clean energy leader if smart businesses and homeowners invest in solar where it pencils out.
The climate, tax benefits and technological advancements converge to make now an ideal moment to lock in zero-fuel cost electricity for the next 30 years!
Solar Power in North Dakota – Conclusion and Next Steps
If you made it this far reading my manifesto convincing North Dakotans to adopt solar power, pat yourself on the back!
Here are my big key takeaways for you around solar panel costs, sizing and projected returns:
North Dakota Solar Payback in 6 Years
- Among lowest solar equipment pricing in US at $2.42/Watt
- High home electricity use of 36 kWh/day
- 7 kW system size well matched for typical household
- 26% Federal tax credit reduces upfront cost by $3,775+
Earn Back Investment in Just 6-7 Years
- $1,667+ annual electricity bill offset
- Solar system cost recouped in 6-7 years
20+ Years of Near Free Power
- Premium panels warrantied for 25 years electricity production
- 287% Return on Investment over system lifetime
Not many home improvement investments check all those boxes! And trusts me, once you experience the pride and satisfaction from directly harnessing the sun‘s energy, you‘ll wonder why you didn‘t go solar sooner.
If this analysis helped bring solar power‘s potential into focus or tipped your decision towards going solar in North Dakota, I‘m thrilled to help however I can! A good next step is to reach out to qualified local solar installers using this quote comparison tool I built with EnergySage and lock in current pricing.
Wishing you many years of free and clean solar energy ahead! Let me know if any other questions come up.
Greg
Solar Expert
[email protected]
