Net Metering in North Dakota (2026)
North Dakota uses Avoided-cost export credit. North Dakota credits exports only at avoided cost, and with the cheapest power in the U.S. solar payback is among the longest.
| Policy type | Avoided-cost export credit |
|---|---|
| Export compensation | Avoided-cost (wholesale) rate, well below retail |
| Retail electricity rate | ~12¢/kWh |
| Est. annual production per kW | ~1,350 kWh/kW/yr |
Policy status reflects the statewide standard as of 2026. Actual export rates and program caps vary by utility — confirm with your provider.
What this means for your payback
Since North Dakota pays less than retail for exports, self-consumption is where the money is. Every kWh you use in your home is worth the full ~12¢/kWh, while exported kWh earn less — so a home battery that shifts midday production into evening use materially improves payback here, unlike in full retail net-metering states.
2026 reality check: the 30% federal tax credit for purchased home solar ended Dec 31, 2025. With that gone, net metering policy and any North Dakota state incentives are now the main levers on your solar ROI. Run the numbers on your actual utility bill before signing anything.
See full solar costs & payback for North Dakota
Solar panel cost in North Dakota →North Dakota net metering FAQ
Does North Dakota have net metering?
Not in the traditional 1:1 sense. North Dakota uses avoided-cost export credit, crediting exported solar below the retail rate. North Dakota credits exports only at avoided cost, and with the cheapest power in the U.S. solar payback is among the longest.
What is North Dakota's solar export rate?
Below retail. North Dakota credits exports only at avoided cost, and with the cheapest power in the U.S. solar payback is among the longest. As a rule, plan your system around using power on-site rather than banking exports at 12¢/kWh.
Do I need a battery to make solar worth it in North Dakota?
A battery helps a lot here. Because North Dakota pays less than retail for exports, storing midday solar and using it at night captures far more value than exporting it, shortening payback.
Is solar still worth it in North Dakota now that the federal tax credit is gone?
Often, yes. The 30% federal credit for purchased systems ended Dec 31, 2025, so North Dakota's avoided-cost export credit plus any state incentives are now the main drivers of payback. At ~12¢/kWh and about 1,350 kWh produced per kW each year, run the numbers on your own bill before deciding.